Microsoft (MSFT, Financials), the software and cloud computing company behind Windows, Azure, Office, Copilot and Xbox, could gain a new growth catalyst as businesses look for cheaper ways to use artificial intelligence.
The focus is AI orchestration, which means routing tasks across different AI models instead of relying on one expensive model for everything.
That matters because companies are trying to control token costs. Some tasks need a powerful model, while others can be handled by cheaper open-source or smaller models.
Microsoft is well placed for that shift. Its Copilot tools can direct work across models, while Azure can host larger frontier models. Its Foundry AI platform also gives customers access to thousands of model options.
For investors, the opportunity is simple. If companies want AI but need lower costs, Microsoft can position itself as the platform that manages that complexity.
The challenge is proving these newer usage-based AI contracts can offset slower growth in traditional subscription software.
Microsoft shares are down about 20% this year, making the next phase of AI adoption important for sentiment.