Microsoft is taking significant strides in the realm of artificial intelligence management with the introduction of its new tool, Microsoft Agent 365. This initiative aims to streamline the management of AI agents, a task that is becoming increasingly vital as the company anticipates a staggering 1.3 billion agents to be operational by 2028. However, the announcement has not been met with enthusiasm from investors, resulting in a nearly 1.5% drop in Microsoft’s stock during Wednesday afternoon trading.
Agent 365 is designed to facilitate the rapid adoption of agentic AI, a concept that remains largely uncharted territory. Microsoft recognizes the need for robust management systems as it rolls out access to these AI tools, which are initially set to “off” due to potential security vulnerabilities. The concern is that unattended AI agents could inadvertently download malware, posing risks to organizational security.
With Agent 365, IT professionals will have the capability to manage these “rogue agents” effectively. The tool allows for the quarantining of unauthorized agents while providing authorized ones with access to a suite of productivity tools, enhancing both operational efficiency and cybersecurity measures. This tool will be available to all license holders participating in an early access program.
“Afraid Sony Was Going to Own the Living Room”
In a retrospective look at the competitive landscape of the gaming industry, former Microsoft executive Peter Moore shared insights into the company’s concerns during the console wars. At that time, Microsoft feared that rival Sony would dominate the living room market, given its extensive portfolio that included televisions and media players, alongside its leading gaming console.
This apprehension stemmed from a desire to avoid being pigeonholed as merely a “productivity company.” Fast forward to the present, and Microsoft has successfully expanded its reach across various sectors. With the anticipated release of the next Xbox, the company is poised to further penetrate the gaming market, building on its recent successes in portable gaming.
Is Microsoft a Buy, Hold or Sell?
On Wall Street, analysts have expressed a strong consensus regarding Microsoft’s stock, assigning it a “Strong Buy” rating based on 33 Buy recommendations and two Holds over the past three months. Following an impressive 18.85% increase in share price over the last year, the average price target for MSFT now stands at 9.81 per share, suggesting a potential upside of 29.49% from current levels.
