AI agents are becoming power users of enterprise software and deciding which tools to buy next—and Microsoft knows it

AI is transforming how enterprise software gets bought—not by replacing users, but by becoming one. 

The debate around AI and the workplace often centers on labor displacement: Will it replace workers? Where will it fall short? And indeed, some “AI-first” experiments have produced mixed results—Klarna reversed course on customer service automation, while Duolingo faced public backlash for an AI-focused growth strategy. 

These outcomes complicate our understanding of Microsoft’s recent efficiency-driven layoffs.