Microsoft Unveils Copilot Mode for Edge to Compete in AI Browser Market

Microsoft has introduced a major update to its Edge browser with the launch of Copilot Mode, aiming to enhance its artificial intelligence capabilities and regain market share in the competitive browser landscape. As of September 2023, Edge held just 10.37% of the desktop browser market, a decline from 13.64% in May, while Chrome continues to dominate with a substantial 73.81%, according to Statcounter.

This update is part of Microsoft’s broader Copilot Fall Release, which emphasizes a shift toward “human-centered AI” and includes several new features. Among them are Copilot Actions, which allow users to delegate multi-step tasks to the AI, such as unsubscribing from email lists or making restaurant reservations. Additionally, the Journeys feature automatically organizes past browsing sessions by topic, enhancing user navigation.

Copilot’s capabilities extend to voice interaction, enabling users to instruct the AI on tasks like opening specific web pages or retrieving information without extensive scrolling. For instance, users can instruct Copilot to sift through their emails and unsubscribe from unwanted shopping newsletters. This functionality aims to streamline user experience and free up time for more important tasks.

Introducing Mico: The Visual AI Assistant

Complementing the Copilot Mode is Mico, a new visual AI assistant designed to make interactions feel more engaging. Mico is an animated avatar that responds during voice conversations, using expressions and color changes to convey emotions, as described by Microsoft. While this feature aims to create a more human-like experience, it raises questions about its suitability in enterprise environments, where functional interfaces are often preferred. Users have the option to disable Mico if desired.

Currently, Copilot Mode is available for free “for a limited time” on Windows and Mac. However, Microsoft has not disclosed how long this free period will last or any potential pricing afterward. The new Actions and Journeys features are initially available only to users in the United States and are subject to usage limits.

Although Microsoft assures that user data is protected under its privacy statement, concerns remain regarding the storage, retention, and potential use of browsing data for model training. These uncertainties pose challenges for IT leaders considering the integration of Copilot Mode into their corporate environments. According to Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research, the hesitation to adopt this technology stems not from performance issues but from governance concerns. He emphasized that companies must extend their zero-trust policies to include browser functionalities, as these tools can handle sensitive information.

Navigating a Crowded Market

Microsoft’s update arrives as it seeks to catch up in the increasingly crowded AI browser market. Competitors like OpenAI with its Atlas browser, which integrates ChatGPT, and Perplexity with its Comet browser, are gaining traction. This competitive landscape has led some analysts to characterize Microsoft’s approach as a “fast-follower” strategy. Prabhneet Kaur, practice director at Everest Group, noted that much of Microsoft’s innovation feels additive rather than foundational, with new AI features layered onto an existing product.

Despite these critiques, Gogia argues that Microsoft’s strategy reflects a deliberate patience. By integrating identity management and compliance tools into the same product, Microsoft is positioning governance as a key strength. This integration allows for AI actions to be logged and governed, similar to traditional workflows, which is crucial for enterprises handling sensitive data.

As Microsoft prepares to share more details about Edge for Business, many IT leaders are left with unanswered questions about pricing, geographic availability of features, and compliance with regulations such as GDPR. With Chrome’s dominance remaining unchallenged, the pressure is on Microsoft to effectively turn around Edge’s declining market presence. Gogia warns that the evolution of AI capabilities in browsers will soon transition from being a differentiator to an expectation, underscoring the urgency for Microsoft to act swiftly.

In conclusion, while the introduction of Copilot Mode and the visual assistant Mico marks a significant step for Microsoft, the effectiveness of these innovations will ultimately depend on how well they address the governance and trust concerns that are paramount in enterprise settings.