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Welcome to The AI Report — the #1 AI newsletter for business leaders.
We believe you don’t need to be technical. Just informed.
Inside: real-world use cases and Partner Perspectives you won’t find anywhere else:
• 1. 💻 Become an AI consultant with Innovating with AI
• 2. 📉 Microsoft's Copilot is losing ground to ChatGPT
• 3. 💬 How AI improved chat agent productivity
• 4. 🚗 Waymo, Tesla push Congress for self-driving rules
• 5. 💔 Tinder tests AI to combat swipe fatigue
Read Time: 5 minutes
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Latest in AI
Microsoft's Copilot is losing ground to ChatGPT
🚨 Our Report
Microsoft's flagship AI product Copilot is struggling to retain users even after a $60M TV ad blitz. New data shows the percentage of paid subscribers who use Copilot as their primary AI tool dropped from 18.8% to 11.5% between July and late January, while Google's Gemini climbed from 12.8% to 15.7% over the same period.
🔓 Key Points
Microsoft has sold 15M corporate Copilot seats within its 365 productivity business, but some companies are using only about 10% of the seats they're paying for.
Multiple versions of Copilot across different apps have left users confused, with internal surveys confirming the brand positioning problem and CEO Satya Nadella flagging interoperability issues in internal emails.
Computing capacity constraints have also held Copilot back, with Microsoft prioritizing server time for OpenAI and Azure customers over developing its own flagship product.
🔐 Relevance
For enterprise buyers, Copilot adoption should come with realistic usage expectations and careful seat management, as paying for unused licenses is a growing concern. Microsoft's embedded position in corporate computing gives it runway to iterate, but the product still needs to prove its value against ChatGPT (900M weekly users) and Gemini (650M monthly users).
Partner Perspective
Why Paid Ads Don't Work for Your Business (And How AI Can Fix It)
Partner Column exclusively available in this edition of The AI Report
By Louis Shulman — Co-Founder at Orbit Flows
“Paid ads aren't the problem. The missing middle is.”
Case Study
How AI improved chat agent productivity
A global media and entertainment brand deployed gen AI to draft chat responses automatically. Agents review and tweak suggestions.
Pattern: AI analyzes chats and generates brand-voice responses in real time. Agents approve, edit, and act on flagged upsell opportunities.
Why it matters: Agents respond faster without losing personalization. Leadership gains visibility into customer sentiment at scale.
Metric: Response times dropped, enabling agents to handle more chats daily. Revenue increased via AI-flagged cross-sell recommendations.
Steal this: Feed 50 chat transcripts to ChatGPT and ask for templated responses. Test agent adoption for one week before scaling up.
AI News Story
Waymo, Tesla push Congress for self-driving rules
Executives from Waymo and Tesla testified before the Senate Commerce Committee on Wednesday, urging lawmakers to create a national framework for autonomous vehicles to replace what they called a confusing patchwork of state regulations slowing adoption.
Waymo's Chief Safety Officer Mauricio Peña warned that Chinese AV competitors are scaling aggressively with heavy state support and will set global safety standards if the US fails to act. Committee Chairman Ted Cruz, who convened the hearing, said outdated regulations are holding back technology that could reduce traffic deaths, cut commute times, and expand mobility for people with disabilities.
The hearing comes as NHTSA investigates Waymo over school bus safety incidents and a recent pedestrian collision in Santa Monica. Industry leaders say a federal standard would unlock more investment and prevent bad actors from undermining public trust in the technology.
AI News Story
Tinder tests AI to combat swipe fatigue
Tinder is testing a new AI feature called Chemistry that uses questions and Camera Roll data to learn about users' interests and recommend fewer, more targeted matches instead of endless swiping.
The feature is being piloted in Australia as Tinder battles declining engagement, with new registrations down 5% year-over-year and monthly active users down 9% in Q4, according to parent company Match's earnings call.
For Match, Chemistry represents a broader pivot away from the swipe mechanic that made Tinder famous, as it looks to address Gen Z complaints about burnout, repetitiveness, and authenticity on dating apps.
Trending AI Tools (sponsored by our tools database)
A curated look at the AI tools quietly transforming how teams work.
Companies to Watch/Raising Now
Early-stage AI startups on our radar, before they’re everywhere.
• Bedrock Robotics
What they do: Retrofits excavators and heavy construction equipment to run fully autonomous, no operator in the cab.
Why it matters: First operator-less excavator deployments planned for later this year. Construction faces a 349,000-worker shortage in 2026, and Waymo alumni are betting that jobsite autonomy is next. NVIDIA's venture arm participated.
Stage: Series B
Raising: $270M
Investors (if notable): CapitalG, NVentures
• Positron AI
What they do: Builds AI inference chips that run LLMs at a fraction of the power and cost of NVIDIA GPUs.
Why it matters: Jump Trading led the round after deploying Positron hardware and seeing 3x lower latency versus H100s. Next-gen chip targets 5x more tokens per watt than NVIDIA's Rubin. $1B+ valuation.
Stage: Series B
Raising: $230M
Investors (if notable): Jump Trading, Arm, QIA
Know a company we should be watching? Hit reply and let us know.
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