Microsoft's shift to a hybrid seat-plus-consumption model for AI services is a key development, with potential for higher overall revenue despite fewer seats.
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How AI is Changing Microsoft's Business Model | MSFT Stock Deep Dive Part 3
May 6, 2026
Microsoft's business model is shifting due to AI, moving towards a hybrid seat-plus-consumption model. While AI increases employee productivity, potentially reducing the need for seats, the increased usage by power users is expected to drive higher overall revenue. This shift is also being adopted by other software companies like Service Now and GitHub.
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