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Microsoft exec predicts AI agents will reshape software market

A Microsoft executive says most business software will soon run behind AI assistants—like Copilot or ChatGPT—instead of in front of human users. Charles Lamanna, who leads Microsoft 365, warned that AI agents will act as tough customers, favoring the cheapest and most reliable services. This shift could undermine many apps’ pricing power and customer loyalty, including Microsoft’s own products. The standard office setup could end up as just Copilot and Teams.

Why it mattersAI assistants as intermediaries could commoditize business apps, forcing them to compete mainly on price and reliability, not brand or features. If the trend holds, software firms could lose their direct relationships with end users and see shrinking margins.

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GeekWire‘Agents are very harsh customers’: Microsoft exec warns many apps will lose pricing leverage5:48 PM →

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