Microsoft’s (MSFT) GitHub unit has introduced a new artificial intelligence (AI) agent that can code for users, taking on complex programming work for companies and computer experts.
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The new AI coding agent will be included in Microsoft’s “Copilot” AI function. Developers can check the AI agent’s work from GitHub, a widely used repository for code. They can also request modifications and ask that GitHub add source code to existing files.
The new AI agent for GitHub was announced at Microsoft’s Build developer conference in Seattle on May 19. Analysts say the new product shows that Microsoft wants to use AI to enhance its suite of software products. The coding agent could help the technology giant to distinguish its developer tools from competitors such as Atlassian (TEAM) and GitLab (GTLB).
Build Conference
“Using state-of-the-art models, the agent excels at low-to-medium complexity tasks in well-tested codebases, from adding features and fixing bugs to extending tests, refactoring code, and improving documentation,” said Thomas Dohmke, CEO of GitHub, which Microsoft acquired in 2018.
The launch of Microsoft’s AI coding agency comes as developers and users with less technical knowledge increasingly adopt “vibe-coding” systems that write programs and code with a few words of human direction and prompts. Analysts say that GitHub’s new coding agent could assist with maintaining code libraries.
Microsoft’s Copilot AI assistant now has more than 15 million users, four times more than a year earlier, CEO Satya Nadella told analysts on a recent conference call. MSFT stock has risen 9% this year.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 35 Wall Street analysts. That rating is based on 30 Buy and five Hold recommendations issued in the last three months. The average price target on MSFT stock of $509.41 implies 11.05% upside from current levels.
