It was all about agentic AI at Microsoft’s big developer event on Monday.
“The thing that we’ve seen over the past year is just sort of an explosion of agents,” Microsoft CTO and executive vice president of AI, Kevin Scott, said during the company’s Build conference.
Scott added that the number of daily active users of the various AI agents that Microsoft has visibility into “more than doubled” since Microsoft’s Build event last year.
CEOs and executives across the tech industry have heralded 2025 as the year of agentic AI, and the Microsoft executive took some time to define what Microsoft means by the term.
Scott described the AI agents Microsoft is building as “a thing that a human being is able to delegate tasks to.” AI agents are still in their early days, and Scott said there’s still a bit of a “capability overhang with reasoning” at the moment, but they will continue to improve. As that happens over the next year, he said AI agents will get more powerful and cheaper to operate.
‘The next big step forward’
Microsoft made a slew of announcements about AI updates and partnerships related to agentic AI during its opening keynote at Build.
Microsoft CEO Satya Nadella said that the company is working to create a host of tools to help build an open, “agentic web” at scale, including cloud computing tools available through its Microsoft Azure platform. The company demoed multiple new AI features available in Windows, Office, Azure, and other platforms throughout the keynote.
Showcasing Microsoft’s new Azure SRE agent for site reliability engineering, which will be embedded in GitHub Copilot, Nadella said agents are all about having a reliable AI “peer” that you can delegate complex tasks to and trust to help remove “pain points” for developers, such as getting woken up in the middle of the night to deal with a website issue.
“This is the next big step forward, which is a full coding agent, built right into GitHub, taking Copilot from being a pair programmer to a peer programmer,” Nadella said. “You can assign issues to Copilot, bug fixes, new features, code maintenance, and it’ll complete these tasks autonomously.”
Microsoft also flexed its reach with virtual appearances from a who’s who of AI CEOs, including OpenAI CEO Sam Altman, Tesla and xAI CEO Elon Musk, and Nvidia CEO Jensen Huang.
Altman made a live appearance virtually to talk about the evolution of agentic AI and the recent launch of Codex, the AI startup’s new agent designed to assist programmers with writing code, fixing bugs, and running tests. Altman described Codex as “true software engineering task delegation.”
“We’ve been talking about someday we’d get to a real agentic coding experience, and it’s kind of wild to me that it’s finally here,” Altman said. “I think this is one of the biggest changes to programming that I’ve ever seen.”
“This idea that you now have a real virtual teammate that you can assign work to, that you can say, ‘Hey, go off and do some of the stuff you were just doing and increasingly more advanced things,’ you know at some point saying, ‘I’ve got a big idea, go off and work for a couple of days and do it,'” the OpenAI CEO added.
The productivity gains can also be significant, Altman said.
“It was amazing to watch over the last few months as we were working on Codex internally — you know there’s always a few people who are the early adopters — and how quickly the people who were just using Codex all day changed their workflow and just the incredible amount they were able to do relative to someone else was quite interesting,” he said.
Microsoft announced plans to expand the AI models available through Azure to integrate xAI’s Grok 3 and Grok 3 Mini. In a pre-recorded clip, Musk, who once interned at Microsoft, talked with Nadella about his first experiences using Microsoft software as well as Grok’s capabilities.
Microsoft also introduced “Copilot Tuning” to create agents using company data. The announcement confirmed Business Insider’s reporting from last week that Microsoft was planning to debut a new Copilot designed to “rapidly channel an organization’s knowledge into a Copilot that can ‘talk,’ ‘think,’ and ‘work’ like the tenant itself,” according to an internal memo. That project was previously called Tenant Copilot internally, the company has since confirmed.
In Satya Nadella’s closing comments, the Microsoft CEO said the company is trying to apply AI across the “full stack” of software development and agentic web products, including Microsoft 365 Teams, Copilot Studio, and more.
“Ultimately, though, all of this is about creating opportunity to fuel your ambition,” the Microsoft CEO said, pointing to a father who used Foundry to speed the diagnosis of a rare disease affecting his son and a startup in South America that created an app to gamify wellness.
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