U.S. tech giant Microsoft (MSFT) stole the spotlight on Thursday with the reveal of Mico, a cartoon face and expressive AI buddy for its chatbot Copilot. However, the company also rolled out several new AI features for the Copilot Mode on Edge, further bolstering its position as the AI browser war intensifies.
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In July, Microsoft introduced the Copilot Mode on Edge, empowering users with the ability to type or speak to chat with Copilot. The launch also came with features that helped users to compare and summarize open tabs as well as complete tasks such as booking reservations.
Microsoft Turns Edge into AI Companion
Now, Microsoft is rolling out additional features to turn the browser into “a dynamic, intelligent companion,” noted Sean Lyndersay, the tech company’s vice president for Edge. Some of these features include the ability for users to open a tab or have the chatbot go through their inbox using voice prompts.
The chatbot can now also automatically group prompts into topics for easier access as well as deploy users’ browsing history — when permission is given — to improve its responses. It will now also return users to their last sessions.
However, Microsoft noted that the voice-based feature, which it called ‘Actions,’ is currently only available for U.S. users for limited preview.
AI Browser Showdown Pits Legacy and Startup Firms
These features further position Edge to compete with Alphabet’s (GOOGL) Google Gemini AI chatbot rollout as well as new AI-centric browsers from startups such as Perplexity AI, which recently opened free access to its Comet browser.
In terms of competition, there is also Brave with its Leo browser, and The Browser Company with its Arc and Dia browsers, both of which use AI to push traditional boundaries for what browsers can do.
Moreover, heavyweight AI startup OpenAI (PC:OPAIQ) just joined the race with ChatGPT Atlas, even as Google recently launched a newer version of its Gemini model to help developers deploy AI agents to interact directly with websites and apps. Norway’s Opera (OPRA) also recently hopped on the AI browser bandwagon.
Is Microsoft a Buy, Sell, or Hold?
Turning to Wall Street, Microsoft’s shares currently have a Strong Buy consensus rating, according to TipRanks’ data. This is based on 32 Buys issued by analysts over the past three months. Moreover, at $630.28, the average MSFT price target suggests about 21% upside from the current level.
