Microsoft to bring ChatGPT-style AI to Office apps

Microsoft is not taking its foot off the gas.

Fresh off integrating OpenAI technology into its Bing search engine, the software giant is now gearing up to bring ChatGPT-like capabilities to its flagship Office apps, including Word, PowerPoint, and Outlook. Sources familiar with Microsoft's plans tell The Verge that the company is tentatively planning a demo in March to show off its Prometheus Model inside productivity software.

Bringing Prometheus into everyday work

Some of these integrations have already been brewing behind the scenes. The Information previously reported that Microsoft has been testing GPT models inside Outlook to improve search results and suggest email replies, as well as testing document drafting inside Word.

Just a week ago, Microsoft rolled out generative AI features in Viva Sales, using the Azure OpenAI Service to craft sales pitches. That preview is remarkably close to what is being tested for general Outlook users.

According to sources, Microsoft is also working on generating graphs and graphics for PowerPoint presentations. Since Bing can already produce basic tables and charts, turning structured data into presentation slides or Excel visualizations is the logical next frontier. You can even catch a glimpse of this today through the Bing sidebar in the Edge browser, where the compose tab offers a rough preview of what is coming to Word.

Racing ahead of Google

This rapid cadence is entirely driven by rivalry. Microsoft originally planned to launch its new Bing AI in late February, but pushed the timeline up once Google started preparing its own announcements. Google hastily unveiled Bard just a day before Microsoft's event.

CEO Satya Nadella is determined to cement Microsoft's reputation as the undisputed frontrunner in AI. During Tuesday's Bing event, Nadella was so eager that he wanted to kick off the presentation twenty minutes ahead of its scheduled 10 AM PT start time. Organizers scrambled, eventually starting five minutes early, with Nadella walking on stage two minutes before schedule.

The urgency makes sense given the numbers. UBS analysts estimate that ChatGPT hit 100 million monthly active users in two months. Bing racked up over one million waitlist signups in 48 hours, climbing to the third spot on the US App Store on Thursday.

Still, Microsoft leadership is aware of the stakes. While executives believe they hold an edge over Google, they have reportedly warned staff that rivals could attempt to disrupt Office just as aggressively as Microsoft is attacking Google Search.

Why it matters

Search was an exciting opening shot, but productivity software is where Microsoft makes its real money.

If you spend your day wrestling with slide decks or drafting repetitive corporate replies, having an AI that generates a rough draft in seconds is genuinely transformative. For regular office workers, this will be the first time advanced language models fit directly into existing daily routines without needing a separate browser tab.

Strategically, Nadella is executing a classic aggressive pincer move. By moving early, Microsoft forces Google to fight a two-front war in both search and Google Workspace. However, we believe moving this fast comes with obvious hazards. Hallucinations in search results are frustrating, but hallucinations in executive financial reports or client emails can be disastrous. Microsoft will need to prove its Prometheus Model can handle strict corporate standards before users trust it with real work.