220 Enterprise SaaS Incumbent AI Rollouts = Microsoft 365 Copilot – 3/23 Note: N=61 CIOs in the USA & EU. Microsoft 365 Copilot was announced in 3/23 but was not made generally available for enterprise customers until 11/23. Source: Company announcements & investor filings, Morgan Stanley, ‘4Q24 Preview – Can Microsoft Add Clarity to the AI Monetization Question?’ (7/24) Microsoft 365 Copilot – Q2:23-Q4:24, per Microsoft & Morgan Stanley We are seeing accelerated customer adoption across all deal sizes as we win new Microsoft 365 Copilot customers and see the majority of existing enterprise customers come back to purchase more seats. When you look at customers who purchased Copilot during the first quarter of availability, they have expanded their seat collectively by more than 10x over the past 18 months. And overall, the number of people who use Copilot daily, again, more than doubled quarter over quarter. Employees are also engaging with Copilot more than ever. Usage intensity increased more than 60% quarter over quarter, and we are expanding our TAM with Copilot Chat, which was announced earlier this month. - Microsoft CEO Satya Nadella, 1/25 % of CIOs % of CIOs Expecting to Use Microsoft 365 Copilot over Next 12 Months, per Morgan Stanley Survey 0% 40% 80% Q2:23 Q4:23 Q2:24 Q4:24 Horizontal Enterprise Platform = SaaS Incumbents Or Large Language Model Challengers?