Microsoft is shifting its strategy for Office 365 by deploying its own MAI models to handle a growing share of user prompts in Excel and Word, reducing reliance on third-party software from OpenAI and Anthropic. This move follows a broader industry trend where major technology firms are curbing spending after a period of aggressive investment. While the company still uses external models, it has increasingly prioritised its internal agents, recently announcing seven new MAI tools including an agentic coder and a text-to-image generator at its Build conference. The decision reflects a wider market correction where the high cost of buying and providing AI services has forced companies like Amazon, Uber, and Meta to act more frugally. Some organisations are even considering Chinese alternatives for agentic solutions to avoid expensive Western pricing, despite associated security concerns. Microsoft declined to comment further when contacted by TechCrunch.
- Office 365 previously advertised heavy reliance on external models
- Industry spending has dropped significantly after an initial boom
- Security risks accompany the search for cheaper non-Western AI
