Microsoft Makes First Major Change to Keyboard Since 1994. It’s All About AI.

While the thought of an AI assistant may bring back memories of the dreaded “Clippy” for some, Microsoft is confident that users are ready for an improved version. The company launched the 365 Copilot late last year at $30 per user a month and said it improved productivity in a survey of early corporate adopters.

Analysts at Macquarie estimated in December that Microsoft’s AI Copilot portfolio could generate $9.1 billion in incremental revenue with a 61% to 91% gross margin by fiscal 2026. 

“There’s never been a better time to get started with Copilot today, whether it’s turning your ideas into songs, creating beautiful images and polished drafts to adjusting your PC settings, Copilot is your everyday AI companion for work and life,” wrote Yusuf Mehdi, Microsoft corporate vice president, in a blog post Thursday.

Microsoft shares were up 0.3% in premarket trading, having slipped 1.5% in the opening two trading days of the year.

While the introduction of a new key is only a small change, it’s symbolic of a larger shift set to take place this year as technology companies adapt their hardware for AI. Barron’s has written about how companies such as
Dell Technologies,

HP,
and Lenovo Group are readying PCs which will be able to run generative AI applications, regardless of whether or not they are connected to the internet.

Microsoft’s Mehdi hinted at that future as he said in his post that AI will require an operating system that blurs the lines between local and cloud processing. Keyboards featuring the Copilot key will come with various Windows 11 PCs beginning in late February, including touchscreen-based Surface devices.

Dell shares were down 0.1% in the premarket, while
HP
was up 0.2%.

Write to Adam Clark at [email protected]