Microsoft Explains that Its AI Leads to Smart Software Capacity Gap Closing

May 7, 2025

dino orange_thumb_thumb_thumbNo AI, just a dinobaby watching the world respond to the tech bros.

I read a content marketing write up with two interesting features: [1] New jargon about smart software and [2] a direct response to Google’s increasingly urgent suggestions that Googzilla has won the AI war. The article appears in Venture Beat with the title “Microsoft Just Launched Powerful AI ‘Agents’ That Could Completely Transform Your Workday — And Challenge Google’s Workplace Dominance.” The title suggests that Google is the leader in smart software in the lucrative enterprise market. But isn’t Microsoft’s “flavor” of smart software in products from the much-loved Teams to the lowly Notepad application? Isn’t Word like Excel at the top of the heap when it comes to usage in the enterprise?

I will ignore these questions and focus on the lingo in the article. It is different and illustrates what college graduates with a B.A. in modern fiction can craft when assisted by a sprinkling of social science majors and a former journalist or two.

Here are the terms I circled:

product name: Microsoft 365 Copilot Wave 2 Spring release (wow, snappy)

integral collaborator (another bound phrase which means agent)

intelligence abundance (something everyone is talking about)

frontier firm (forward leaning synonym)

‘human-led, agent-operated’ workplaces (yes, humans lead; they are not completely eliminated)

agent store (yes, another online store. You buy agents; you don’t buy people)

browser for AI

brand-compliant images

capacity gap (I have no idea what this represents)

agent boss (Is this a Copilot thing?)

work charts (not images, plans I think)

Copilot control system (Is this the agent boss thing?)

So what does the write up say? In my dinobaby mind, the answer is, “Everything a member of leadership could want: Fewer employees, more productivity from those who remain on the payroll, software middle managers who don’t complain or demand emotional support from their bosses, and a narrowing of the capacity gap (whatever that is).

The question is, “Can either Google, Microsoft, or OpenAI deliver this type of grand vision?” Answer: Probably the vision can be explained and made magnetic via marketing, PR, and language weaponization, but the current AI technology still has a couple of hurdles to get over without tearing the competitors’ gym shorts:

  1. Hallucinations and making stuff up
  2. Copyright issues related to training and slapping the circle C, trademarks, and patents on outputs from these agent bosses and robot workers
  3. Working without creating a larger attack surface for bad actors armed with AI to exploit (Remember, security, not AI, is supposed to be Job No. 1 at Microsoft. You remember that, right? Right?)
  4. Killing dolphins, bleaching coral, and choking humans on power plant outputs
  5. Getting the billions pumped into smart software back in the form of sustainable and growing revenues. (Yes, there is a Santa Claus too.)

Net net: Wow. Your turn Google. Tell us you have won, cured disease, and crushed another game player. Oh, you will have to use another word for “dominance.” Tip: Let OpenAI suggest some synonyms.

Stephen E Arnold, May 7, 2025

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