Microsoft (MSFT) will be making big changes to AI next year. Ashley Llorens, corporate VP and MD at Microsoft Research, told Yahoo Finance that artificial intelligence is on the verge of becoming far more sophisticated, enabling it to tackle increasingly complex tasks. Llorens added that advances in AI reasoning and perception will mean that a more complex set of tasks can be delegated to AI, from managing workflows to streamlining business operations.
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MSFT Is Using AI Agents to Connect Its Employees
This has led to the rise of AI agents. AI agents are autonomous or semi-autonomous applications designed to perform specific tasks. Unlike traditional chatbots like ChatGPT, these agents can execute complex instructions through natural language commands. For example, an AI agent could decide the order of priority for incoming customer requests or extract data from invoices to organize it into spreadsheets, saving time and effort.
In fact, Microsoft itself is employing AI agents internally to connect its employees across the organization.
MSFT Believes that AI Will Become Increasingly Multimodal
Looking ahead, Llorens believes that AI will increasingly become multimodal over the next year, enabling it to interact with multiple modes of communication, including text, visual, and audio inputs. Users will be able to see this when the tech giant launches its upcoming Copilot Vision for Copilot in Windows. This feature will be opt-in and will allow users to see an image and ask Copilot questions about the image. For instance, if you’re viewing a movie poster, you can simply ask Copilot about the cast, and it will recognize your intent without needing additional context.
Moreover, Microsoft expects that AI advancements will become more energy-efficient through hardware upgrades. In addition, the company claims that its new data centers will “consume zero water for cooling,” and it will focus on low-carbon construction materials.
What Is the MSFT 12-month Target Price?
Analysts remain bullish about MSFT stock, with a Strong Buy consensus rating based on 26 Buys and three Holds. Over the past year, MSFT has increased by more than 15%, and the average MSFT price target of $497.36 implies an upside potential of 12.4% from current levels.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.