Microsoft exec: AI agents will strip most apps of pricing power

Charles Lamanna, the Microsoft executive overseeing Microsoft 365 and Copilot, said at Madrona's IA40 Summit in Seattle that most business software will run headless behind AI agents. Agents pick the cheapest, fastest and most reliable service, so apps lose customer loyalty and pricing leverage. Word, Excel and PowerPoint will survive, but most users will reach them through Copilot.

• Lamanna: the agent, not the end user, becomes the app's customer
• 'Thick' apps like CAD and Excel keep direct users, he says
• Most business software will run headless behind Copilot and ChatGPT
• Standard office setup becomes Copilot for AI and Teams for chat