Tech Giants Clash: Microsoft's AI Upgrade Faces Investor Skepticism

In the fast-paced world of tech, Microsoft recently unveiled some shiny new features for its AI assistant, Copilot, integrated into the Microsoft 365 suite. However, investors weren't wowed and the stock took a hit, dropping over 3% midday. Meanwhile, Google flexed its muscles by launching Gemini 3. 0, boasting it as the pinnacle of AI performance. At the Ignite 2025 event, Microsoft introduced a few tools to make Copilot smarter and more useful. There's Work IQ, which is like a brainy sidekick that digs into a company's data and past activities to provide custom insights. It can also suggest AI agents and help businesses create their own. Then there's Agent Mode, now extended to PowerPoint, which lets users create spreadsheets, presentations, and documents with a little help from AI models like those from Anthropic and OpenAI. Lastly, Agent 365 is a tool to manage and govern AI agents, even those from competitors. These updates come after Microsoft introduced 'Mico, ' an AI buddy for Copilot, and other features to make the assistant more collaborative. The tech giant is also working on its own AI models to rely less on OpenAI and has partnered with Nvidia to invest in Anthropic. Despite the stock dip, Wall Street seems to have faith in Microsoft. Analysts have given it a Strong Buy rating, with a price target suggesting a 29% upside from its current trading level. But will these new AI features be enough to keep investors happy in the long run?