A pair of interesting Microsoft and Apple updates.
The recent launch of Microsoft 365 Copilot has drawn intense criticism, with many users expressing dissatisfaction following a thirty percent price increase for the subscription. The company, which boasts eighty-four million paid subscribers worldwide, faced backlash after failing to communicate effectively about the changes, leaving many customers unaware of the new pricing until they received pop-up notifications. Users have reported that the features of Copilot are still in early development, with many describing the results as subpar. Despite the backlash, the price hike is projected to generate an additional $1.7 billion annually, even if just ten percent of subscribers decide to cancel their plans. Microsoft has yet to receive any praise for the implementation of Copilot, raising concerns about the company’s direction and customer engagement strategies.
Apple Intelligence too, has gotten criticsm. Apple has revealed its two main priorities for artificial intelligence this year, as outlined in a leaked memo from John Giannandrea, head of AI at the company. The focus will be on revamping the infrastructure behind Siri and enhancing existing AI models. A key executive, Kim Vorrath, has been moved to lead these efforts. While these improvements may not seem groundbreaking, they reflect Apple’s commitment to progressive iteration. The company is addressing recent challenges with AI features, such as notification summaries, which have faced errors and are temporarily disabled in iOS 18.3 for certain applications. As Apple works to enhance its AI capabilities, the transformation of Siri into a more effective virtual assistant is anticipated to be a significant focus leading into 2026.
Why do we care?
This is the highlight of a broader issue for the IT services industry: the gap between AI hype and real-world delivery. These developments show that even the biggest players are grappling with pricing backlash, communication missteps, and underwhelming execution. For IT providers, these are lessons in transparency, managing customer expectations, and ensuring AI offerings deliver actual value.
I’m finding value on my own workflows for AI, but note they are not immediately apparent and require focused effort. That’s why I’m intrigued by the space – that hard work is valuable and resellable.
But the big providers faltering on their launches to provide value, and Microsoft forcing the product combined with a price hike, is pretty unfriendly to customers… and concerning when coupled with the previous story.