Microsoft says big companies are putting AI to real work

Microsoft says large companies are moving past AI experiments and putting the technology to work inside their daily operations. On the company's earnings call Wednesday, Oct. 28, CEO Satya Nadella pointed to Unilever, Rolls-Royce and Raiffeisen Bank International as examples. Microsoft also said it is changing how it charges for AI.

What companies are doing

Nadella said these firms use AI on operational problems, not just isolated productivity tasks like drafting emails. Here is what he described:

• Unilever is automating order intake and trade promotion disputes.
• Rolls-Royce uses AI for maintenance planning, inventory and supply chains for jet engines with about 30,000 parts.
• Raiffeisen has used AI across more than 20 business processes, including credit-related workflows.

Nadella said customers now focus on whether AI delivers reliable results, controls costs and runs securely. "The shiny object stuff is waning," he said.

The numbers behind it

Daily users of Copilot, Microsoft's AI assistant, rose nearly 50% from the prior quarter and more than five times from a year ago. Automated tasks nearly doubled since July. Customers with more than 50,000 Copilot seats grew more than eightfold. Volkswagen recently said it plans to roll out Copilot to more than 330,000 employees.

The quarter beat expectations. Revenue was $92.3 billion, up 19%. Microsoft Cloud revenue reached $63.9 billion, up 30%, and Azure revenue rose 48%.

How the pricing is changing

Microsoft still sells per-user subscriptions. It now also adds usage-based billing for AI agents that handle more complex tasks. Customers paying this way grew more than 75% in the quarter.

Nadella said IT departments typically fund the subscriptions that provide everyday AI. Individual business units can pay for agents that do higher-value work. CFO Amy Hood said usage-based pricing outside software development will likely move more slowly, because it requires changes in sales practices and customer education.

What to watch

If your business pays for AI tools, expect pricing to drift from flat monthly fees toward charges tied to how much work the AI does. The report does not say what any of this will cost, or how soon smaller companies will see it. Hood's comments suggest the shift will be uneven.