Microsoft dips as Bernstein says Copilot AI is going 'everywhere'
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Microsoft (NASDAQ:MSFT) shares fell fractionally on Wednesday even as investment firm Bernstein said the big takeaway from its annual Build developers conference is that artificial intelligence is being embedded in every facet of the company's business, via Copilot.
"By making co-pilot ubiquitous across the Windows platform, Microsoft, and third party apps, Microsoft could put together a very large surface area for its AI and search platform. Given the size of the potential user base ([more than] 1.2B Office and [more than] 1.4B Windows users) and Microsoft's first mover advantage in the AI space, we think Microsoft is currently very well-positioned to be a leader in AI tech," analyst Mark Moerdler wrote in an investor note.
Moerdler, who rates Microsoft (MSFT) outperform, also noted that Microsoft (MSFT) added clarity on data privacy with generative AI on Azure, which he said "should help ease user and investor concerns."
"All in, we are very impressed by the technological and product leadership demonstrated by Microsoft in the AI domain," Moerdler explained.
Microsoft (MSFT) made more than 50 announcements at the conference, but CEO Satya Nadella laid out five most important announcements:
Bringing searching grounding to ChatGPT, with citations now sourced and the information is current.
The announcement of the Copilot stack, letting anyone build their own apps for Copilot.
The Windows Copilot, which allows users to customize Windows settings and has a sidebar that is consistent across apps and programs. 
AI studio for building, training and leveraging AI services.
Lastly, Microsoft Fabric, which unifies storage and compute and is Microsoft's biggest data launch since SQL servers.
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