Ex-Microsoft exec says the company blew it with AI, as it did with mobile — “Not even 3% of paying Copilot users use it even when it’s pre-deployed right in their faces.”
Microsoft’s generative AI strategy appears to be faltering despite significant investment, according to an ex-Microsoft executive. The company’s Copilot adoption has stalled at just 3% of paying users actually utilizing the service, even when it’s prominently integrated directly into their products.
This troubling statistic comes despite Microsoft’s aggressive pursuit of AI through its ongoing multi-billion-dollar partnership with OpenAI that began in 2019. While co-founder Bill Gates initially expressed skepticism about the company’s early $1 billion investment in OpenAI due to its non-profit structure, Microsoft has since woven AI throughout its technology stack.
Financial figures underscore the challenge: between 2023 and 2025, Microsoft generated approximately $30 billion in revenue from OpenAI partnerships. However, the company reportedly spent roughly $100 billion on infrastructure and operational costs—a significant investment yielding disappointing returns in user adoption.
The comparison to Microsoft’s previous failure in mobile computing adds particular weight to the criticism. Just as the company squandered early opportunities and dominant market share to miss the mobile revolution, the executive warns that Microsoft risks repeating this pattern with AI. Despite controlling distribution advantages through its dominance in enterprise software and Windows, the company has struggled to drive meaningful user engagement with Copilot, suggesting that deep integration and market position alone cannot guarantee adoption of new technologies.