While most businesses are reasonably familiar with how to manage people, managing artificial intelligence (AI) is a much different notion. There is very little precedent for how to manage these systems, as many of them do not exist yet. Tech giant Microsoft (MSFT) has an idea of how to make up for that, though, by rolling out a new tool to manage AI in much the same way people are managed. The move did not sit well with investors, though, who sent shares down nearly 1.5% in Wednesday afternoon’s trading.
TipRanks Black Friday Sale
The tool is known as Microsoft Agent 365, and will help in the rapid adoption of agentic AI. Microsoft looks for users to put 1.3 billion agents to work by just 2028, which calls for a certain amount of management capacity. This is especially true given that Microsoft recently released access to agentic AI tools that actually comes pre-set in the “off” position due to potential security risks, as the AI may actually download malware if left unattended.
With Agent 365, IT staff can actually step in to corral “rogue agents,” setting them into a “quarantine” setting, while also giving authorized agents access to a range of productivity tools, as well as offering better protection from cyberattacks. Agent 365 will be available to every license holder that joins in on an early access program.
“Afraid Sony Was Going to Own the Living Room”
New reports from Peter Moore, former Microsoft employee and head of Xbox 360, recently revealed some of Microsoft’s beliefs back during the height of the console wars. One of Microsoft’s biggest fears was that rival Sony (SONY) would end up “owning the living room,” and not without cause.
Sony’s status in the living room was nearly absolute. It had televisions, it had media players for music and video alike, and now it would have the premiere console gaming system. Microsoft at that time was terrified that it would be nothing more than a “productivity company,” relegated to the office and the desktop. Fast forward to today, and Microsoft is now everywhere. There is a very real potential that, with the release of the next Xbox, it will expand further and break into PC gaming as well. It has already delivered on portable gaming with the ROG Ally, so that idea is not out of line.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After an 18.85% rally in its share price over the past year, the average MSFT price target of $629.81 per share implies 29.49% upside potential.
See more MSFT analyst ratings
Disclosure
Disclaimer & DisclosureReport an Issue
