Microsoft packages business AI in single app as it tries to compete with Anthropic

Microsoft has launched an updated Copilot app that combines coding and productivity features in a single application to compete with rivals like Anthropic and OpenAI in the enterprise AI market. Currently, fewer than 7% of Microsoft's 450 million Office 365 users pay for AI features, so the company is shifting to a usage-based pricing model instead of monthly subscriptions to encourage adoption. The new app includes a Code tab for non-technical users to start AI-driven programming projects, a Home tab for complex productivity tasks, and an Autopilot feature to create custom agents (software programs that can perform tasks and communicate automatically).