The tech industry is Captain “All Ears” for Copilot

After surveying 40 large enterprise decision-makers about Microsoft, Jefferies has raised its price target on the tech giant to $600 from $550. The reason?

Faster adoption of M365 Copilot versus OpenAI’s ChatGPT.

The firm found that 82% of respondents have adopted Copilot, compared to 71% for ChatGPT.

It also found that 57% are significantly or modestly increasing Azure cloud spend due to Copilot, compared with 36% in the last survey in September.

In fact, Jefferies expects Copilot to drive more than $11 billion in revenue in the 2026 calendar year.

Jefferies’ note contradicts a report last month by Bloomberg that said Microsoft’s sales team was having trouble convincing companies to use Copilot over ChatGPT, which it said many employees prefer.

Of course, the people making the decisions have different incentives than the employees at large, including the consideration of Microsoft’s long-standing and deep existing relationships with its client companies.

The Takeaway

As anyone who has messed around with AI casually can attest, there’s stuff that the machine learning models are amazing at, stuff that they’re terrible at, and a whole lot in between. Pair programming and assisting a human coder just seems to be one of those things that AI is really, really solid at. It turns out that if you train a computer on millions of forum threads and Stack Exchange posts, it actually gets pretty good at whipping up half-decent code. Whoever wins that will be an instant gold standard in the AI business, and Microsoft may have the edge here.

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