Microsoft To Roll Out AI Copilot For Pentagon By Summer 2025, Tailoring Productivity Tool For High-Security Government Use: Report

Microsoft Corporation MSFT is preparing to roll out its AI Copilot tool for the Pentagon by summer 2025.

What Happened: In a meeting earlier, the company's Chief Commercial Officer, Judson Althoff, said that a major customer with over 1 million Microsoft 365 licenses is set to adopt Copilot, Business Insider reported on Wednesday, citing sources.

The Pentagon is a likely candidate given its large workforce, including 2.1 million military members and 770,000 civilian employees, according to the media outlet.

In a March blog post written for government customers, Microsoft revealed plans to introduce a version of its Copilot AI tool tailored for the Pentagon and other high-security government clients by the summer of 2025.

Pentagon did not immediately respond to Benzinga's request for comment.

Why It Matters: The tool, part of Microsoft 365, is designed to automate tasks and enhance productivity across platforms like Word, Excel and PowerPoint.

"Work is ongoing to ensure the offering meets the necessary security and compliance standards," Microsoft stated, highlighting the significant effort involved in adapting the tool for DoD environments.

Department of Defense did not immediately respond to Benzinga's request for comments.

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Microsoft 365 Copilot uses AI models to assist employees with repetitive tasks, offering insights and streamlining workflows.

Price Action: Microsoft shares rose 0.36% on Wednesday and edged up another 0.085% in after-hours trading, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings show a positive trajectory for MSFT across short, medium and long-term periods. Additional performance insights can be found here.