Microsoft faces Copilot sales doubts and GitHub downtime concerns

In short: Microsoft is pushing new “AI agent” tools, but it is also facing weak demand for Copilot and growing complaints about GitHub reliability.

What's going on

Microsoft used its Build developer conference to highlight “AI agents,” which are AI tools that can take actions for you in steps, like a helper that can follow a short checklist instead of only answering questions. One example discussed was Scout, tied to Microsoft’s adoption of an open-source project called OpenClaw.

At the same time, Microsoft is dealing with signs that its AI tools are not taking off as fast as it hoped. Wired notes that Microsoft’s stock is down this year while some competitors have risen. The report also points to disappointing adoption of Microsoft’s workplace AI products, which are broadly branded as Copilot.

There are also frustrations among software developers, a group Microsoft has long depended on. GitHub, the code hosting site owned by Microsoft, has had notable downtimes, meaning the service was temporarily unavailable. In a Wired interview, Microsoft VP Scott Hanselman said GitHub is under heavy pressure from bots (automated programs, like spam accounts that flood a website), and he described the outages as a “hiccup moment.” He argued that people overlook that GitHub is up “99 percent of the time.”

What to watch

Microsoft’s challenge is trust and habit. Developers need GitHub to work like a utility, similar to electricity, and they will leave if it feels unreliable. Separately, Microsoft needs to prove that AI agents can do useful work without too many mistakes, so more people feel comfortable using tools like Copilot and Scout in everyday jobs.

Source: Wired