Tag: Operating Systems

Dan Ness, Principal Analyst, MetaFacts, March 17, 2023

Summary

Microsoft announced an upcoming service for its Microsoft 365 service that integrates the user’s data using generative AI. Called Microsoft CoPilot, the service will first be offered to enterprises. This TUPdate measures the potential market of those most likely to adopt and benefit from the service.

The Microsoft CoPilot announcement

This week, Microsoft gave one of the most down-to-earth non-announcements among the many major companies exuberantly touting generative AI in some form. The announcement of Microsoft 365 CoPilot demonstrated how artificial intelligence capabilities might be deeply integrated into everyday Office 365 applications, especially those involving some creativity.

Microsoft has many challenges ahead to fulfill what was shown in the demo, including whether consumers, employees, or enterprises will be willing to share their words to be analyzed deeply. Also important will be whether the service adds enough value to counter the risk of getting the results wrong. After all, none of the generative AI tools to date have delivered on the promise of discernment.

Size of the market for creative activities

What we can do today is begin at the beginning – consider the size of the potential market. How many people are regularly doing any creative activities such as those illustrated in the demo? By starting with that assumption, the market size will be conservative. It’s more likely that people who need to get certain jobs done will look for the tool to assist them with what they are already doing. It’s less likely that a new tool will inspire many people to begin giving presentations or crafting videos. Just as buying a shiny new hammer doesn’t turn someone into a capable carpenter, nor does spicing up a spreadsheet make someone into a data analyst or executive decision-maker.

There are fewer potential users than Microsoft may hope, since just under half (46%) of all online American adults regularly do any of several major creative activities:

• Use professional creative software
• Create graphics/presentations
• Create videos

An even smaller share of online Americans regularly uses their connected devices for work-related creative activities. As of TUP/Technology User Profile 2022, 28% of online American adults actively use any of their devices for any of the creative activities identified.