Despite investing billions in artificial intelligence (AI), Microsoft (MSFT, Financial) faces a formidable challenge in competing with the popularity of OpenAI's ChatGPT. According to Sensor Tower, ChatGPT's mobile app has been downloaded over 900 million times, while Microsoft's Copilot sees only about 79 million downloads. It's a crucial battle for Microsoft, as analysts emphasize the necessity of success in this venture.
Microsoft promotes three main Copilot products: a developer tool, a business assistant for Outlook and Word, and a personal assistant for consumers. However, users often prefer alternatives like ChatGPT, pointing to inconsistencies in Microsoft's product experiences. The company hired Mustafa Suleyman to lead consumer AI efforts, aiming to improve the Copilot experience, yet challenges persist with system issues and user dissatisfaction.
Despite marketing efforts targeting younger users, Microsoft lacks a mobile edge against competitors controlling iOS and Android platforms. Copilot's features like speech and image recognition often fall short, and system limitations hinder improvement speeds, impacting user perceptions and trust. Success for Copilot will depend on bridging these gaps with consumers.
