Microsoft Corporation (NASDAQ:MSFT) on Tuesday revealed that its AI-powered developer tool, Copilot, has played a significant role in GitHub's revenue growth.

What Happened: During the company's fourth-quarter earnings call, Microsoft CEO Satya Nadella said that Copilot has been adopted by over 77,000 organizations, marking a 180% increase year-over-year.

This has led to GitHub's annual revenue run rate hitting $2 billion, with Copilot accounting for over 40% of GitHub's revenue growth this year.

The CEO also spoke about the integration of generative AI across the Power Platform. "We are also integrating generative AI across Power Platform, enabling anyone to use natural language to create apps, automate workflows, or build a website," he stated.

Over 480,000 organizations have used AI-powered capabilities in Power Platform, marking a 45% increase quarter-over-quarter.

Nadella further noted that Copilot for Microsoft 365 is becoming a daily habit for knowledge workers, transforming work, workflow, and work artifacts. The number of people who use Copilot daily at work nearly doubled quarter-over-quarter.

When Nadella was asked about the potential of Copilots to replicate the productivity gains for the broader population of knowledge workers, he affirmed that the design system of GitHub Copilot is being replicated inside of M365 Copilot.

"We think of this as really a new design system for knowledge and frontline work to drive productivity, which would be very akin to what has happened in software engineering," he stated.

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Why It Matters: Microsoft has also added agent capabilities to Copilot. New Team Copilot can facilitate meetings, and create and assign tasks. With Copilot Studio, customers can extend Copilot for Microsoft 365 and build custom copilots that proactively respond to data and events using their own first and third-party business data.

Microsoft's Q4 financial results highlighted a revenue beat with a total of $64.7 billion, up 15% year-over-year. This exceeded the Street consensus estimate of $64.36 billion, according to data from Benzinga Pro.

Price Action: At the time of writing, Microsoft shares have fallen 2.81% to $411.05 in after-hours trading. The company closed the regular session on Tuesday at $422.92, a decrease of 0.89%.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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