So Satya Nadella actually gave another speech at Microsoft Ignite 2024, and in this speech, he actually gave us a lot more information about AI and the various different ways we're going to experience AI in 2025. One of the ways that he actually talks about AI is, of

course, the scaling laws. I'm sure you're all very familiar with the recent news that AI is apparently getting harder to build, but of course Satya Nadella talks us through exactly how we're getting through these scaling laws and exactly what they mean for us. You know, with

every platform shift, it's always perhaps good to build a deep context and understanding of the underlying forces, uh, and today we talk about them as scaling laws. Um, you know, just like Moore's Law, we saw the doubling uh in performance every 18 months with AI.

We've now started to see the doubling every six months or so now. In fact, there's a lot of debate, in fact, just in the last month, maybe weeks, there's a lot of debate about whether we've hit the wall with scaling laws, is it going

to continue? I mean, the thing to remember at the end of the day, these are not physical laws, these are just empirical observations uh that hold true, just like Moore's Law did for a long period of time. And so therefore, it's actually good to have some skepticism, some debate because

that I think will motivate, uh, quite frankly, more innovation on whether it's model architectures or whether it's data regimes or even systems architecture. So uh, it's a good thing to have in that context. Though, if anything, we are seeing the emergence of a new scaling law, uh

with with test time or inference time compute in fact OpenAI's GPT-3 is a good example of it and features like the co-pilot think harder are built on GPT-3. Uh, it's all about using test time to solve even harder problems. Next, of course, is

the three new capabilities that are coming to AI in 2025. I recently spoke about one of them recently being memory, but he actually speaks about two other new breakthroughs that are going to be coming to us with AI in 2025 and beyond. So ultimately, though, all these

breakthroughs manifest in three capabilities that are exponentially getting better. Uh, the first is this new universal interface that's multimodal. Uh, it supports speech, images, videos both as input and output. Second, we have this new reasoning and planning capabilities which we essentially we have new neural algebra to help solve uh

complex problems right. We can detect patterns involving people, places, and things. You can even find relationships between people, places, and things using this new algebra. And third, we now have this capability to support long-term memory, rich context, and in fact, teach these models to use tools. So if you put

put all those things together, you can build a very rich agentic world defined by this tapestry of AI agents, right, which can act on our behalf across our work and life, across teams, business processes, as well as organizations. Next is where we managed to take a look at

the co-pilot ecosystem. So there's actually going to be three different platforms for co-pilot, and this is where we take a look at that, and to do that, I we are building out three platforms: co-pilot, co-pilot devices, and co-pilot

and AI stack that's it those are the three platforms it's rapidly becoming an organizing layer for work and how work gets done every employee will have a co-pilot that knows them their work helping them unlock productivity enhancing creativity and saving time and co-pilot studio will allow you

to create agents that automate business processes and every IT department will have a control system to manage secure and measure impact that's it those are the three basic concepts of the C-AI ecosystem over the past year we've seen incredible momentum uh what lean did for

manufacturing AI will do for knowledge work it's all about increasing value and reducing waste uh just take risk analysis at Bank of Queensland group in the past when an incident occurred uh they would have to you know go through thousands of documents and write reports and now they

use co-pilot to be able to synthesize everything that happened and create that first draft uh that means analysis that took weeks it's just taking a day Vone is another great example uh the legal team used to manually analyze and draft and renegotiate thousands of contracts that

govern their massive base station network uh and now they use co-pilot to determine which contracts need to be renewed which need to be scrapped and to keep track of all the expiry dates Vone is also personalizing you know all of

their customer service by leveraging co-pilot um as well as Azure AI to manage customer inquiries their virtual assistant engages in more than 45 million monthly customer conversations and it it's reducing the average hold time uh by more than 1 minute and of

Of course, we're just getting started. This is where we actually get some really cool information. So you know how we've got these co-pilot agents and stuff like that? This is where we talk about co-pilot's actions, which is where you can instruct these agents to do certain

things and have them do them again and again and again to increase the efficiency of them. Today, I'm really excited to announce co-pilot actions. With these actions, you can use co-pilot to reduce the amount of time you spend on repetitive everyday tasks uh that you

do. In fact, the best way to conceptualize actions is for those of you who used Outlook rules. This is Outlook rules for the age of AI, uh, and it works across the entire M365 system, not just in Outlook, right? So it automates everything from

asking for a, let's say, a status update from your team, compiling weekly reports, scheduling emails, requesting feedback on a document. Um, actions are a very simple but yet powerful way for you to scale what you do, right? So whatever was the thing that you had to do multi-step, you

just create one of these actions and it just does it for you. You can discover templates for actions which you can reuse in your everyday uh work. Uh, it's just a simple interface, um, and we're not stopping there. And today, we're introducing new agents you can use

within the context of your team. Again, the best way to think about these are as just your teammates. Uh, they are scoped to specific roles with very specific permissions, just like you know we have permissions and roles, uh, for example, a facilitator agent is someone you can add

to your team's meeting and the facilitator will help keep the meeting focused, moderate the meeting chats as well as the follow-up and action items. Uh, our project manager agent in Planner will help automate in fact all the key steps in a project management

workflow. It'll create a new plan from scratch, it'll help oversee what's happening across the project, task assignments, content creation, and next is even self-service agents, right? So, for these agents provide really useful information, answer questions on policies, uh, but not just

that when it comes to HR and IT, these agents will help you complete the task. Thinking of, think of the, it's just augmenting your HR and IT departments and we're also announcing SharePoint agents. Every SharePoint site will now have a built-in agent. These

agents provide instant access to real-time information and insights from your knowledge base in the flow of your work. Uh, we're also giving you the ability to easily create your own co-pilot, uh, or your own agents using Co-pilot Studio. You know, sometimes we

sort of mystify these agents as things that you know somehow require a lot of effort to build, but it's really pretty straightforward. In fact, the our vision is that it should be as simple as creating a Word doc or a PowerPoint slide or an Excel spreadsheet, that's it.

Like when you say agent, think creating a doc. Um, you know, if I, this example is a good one, right? I can create a field service agent by simply describing it in natural language, connecting it to a couple of data sources, in this case, a SharePoint site in my Dynamics CRM. Uh, I

can easily configure it to meet my specific needs and you have an agent in seconds that's just now integrated into Copilot. Uh, you can also make these agents autonomous using Copilot Studio, uh, and they can always raise an exception in Copilot for input. Remember

like even an autonomous agent from time to time will need attention and it'll need your UI and that's that UI for interacting with us is Copilot. Now just last month we introduced 10 plus autonomous agents in Dynamics 365 that do everything from

optimizing supply chains uh to helping customer service teams resolve issues. For example, take a look at a sales qualification agent. It autonomously researches all the leads that are there in your system, um, and flags the best prospects for you and then drafts a personalized email that you can of

course edit and send. Uh, and we are already seeing customers use capabilities like this. In fact, McKinsey uh has built an autonomous agent that reduces client onboarding time by as much as 90%. DA has built agents to optimize uh their shipping process or

freight shipping process and projecting millions of dollars of savings even in just of the first year. Um, and of course you know when we talk about extensibility that includes changing how you interact with your bespoke business applications too, right? That's kind of fundamentally like the idea that I have

to go to one business application at a time just goes away in this world of agents and so we are very excited to share many of our partners have built their own agents and connectors in Microsoft 365 Copilot that are includes Adobe and obviously LinkedIn, SAP, service

now work day uh and even companies like Cohere they're building AI first agents are also integrating right into co-pilot and now to show you all of this in action I wanted to introduce my colleague Cali on stage uh to take you through the entire co-pilot ecosystem

Cali over to you so this is where we actually get the demo for the co-pilot agents and I think it's really important to watch this if you really want to understand how co-pilot is going to be impacting businesses in the future and

of course how eventually you could implement them into your own business I know I am paying so much attention to this because I want to be one of the first people who rapidly is able to scale a business using AI agents and actions at a scale that no one has ever

seen before my day is comprised of a lot of important but time-consuming tasks which can take away from the time I spend building customer relationships and closing deals that's where Agents come in created in co-pilot Studio agents range from simple prompt and

response to fully autonomous they help with everything from prioritizing leads to scheduling meetings to fulfilling orders let me show you I have an autonomous agent that monitors and fulfills customer orders on my behalf it alerts me when there's a cross-sell or upsell opportunity I can see one of my

longtime customers placed a big order for more product the agent is able to quickly fulfill this order and send me an alert that this is a great opportunity to offer the customer additional products in seconds this deal just got the potential to be a lot more

lucrative Let's take the next step and get ready for the pitch meeting I need to quickly get up to speed on the latest product updates and roadmap For that I go to SharePoint Over the years SharePoint has become the most used solution in the

enterprise for knowledge and business processes This site is where we keep all of the latest product specs roadmap and training materials Now every SharePoint site has an agent so there's all this information is immediately accessible and useful I can find just what I need in seconds by simply asking the agent

Now let's jump back to biz chat From here I can interact with the same SharePoint agent by simply at mentioning it I can ask it to give me an overview of the relevant products availability and pitch decks Because the agent is grounded in this SharePoint site it

pulls from the right source of truth and gives me just what I'm looking for Now it's been a while since I've met with this customer and of course I want to put my best foot forward and understand where they're at Copilot

points me to the sales agent which surfaces all of the details that I need like account highlights and opportunities our most recent sales engagements and interactions with the customer I can see that I have a new counterpart on the customer side and I

want to learn more about them For that I'm going to turn to LinkedIn I can simply at mention the LinkedIn sales Navigator agent to see their background and experience and who else I might know in their network It looks like we have several connections in common within

seconds I'm up to speed on my new partner right in the flow of work now I'm ready for the meeting and I never even opened my CRM I'm going to fast forward to after the meeting it was super successful and now I'm going to work up a quote let's

jump over to SAP's co-pilot Jewel I ask it to reference the latest pricing sheet and I want it to reflect the appropriate discount given the size of the order SAP Jewel generates a detailed quote I can quickly review and send to the customer

now I'm in great shape to land the business and it's not just SAP many of our largest partners are creating agents to bring their unique knowledge right into the flow of work from HR to finance to sales take ServiceNow which covers customer service human resource management and

workplace services or Adobe which can help your team build world-class marketing design and visual content co-pilot will empower every employee and co-pilot Studio agents will transform every business process back to you SAA

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