Nadella Declares 'Copilot Code Red': Emergency Overhaul as Only 15M of 450M Office Users Pay for AI

Yahoo Finance·medium signal

Microsoft CEO Satya Nadella initiated a high-priority overhaul of Copilot on April 18 after analyst reports flagged a 3.3% paid conversion rate (15M Copilot seats out of 450M Microsoft 365 subscribers). The 'E7 suite' launches May 1 with Agent Mode, Copilot Cowork, and Agent 365. BNP Paribas analyst Stefan Slowinski dubbed it 'Microsoft's Copilot code red' — an admission that the current product isn't compelling enough to justify the upsell.