Thursday, July 9, 2026
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Microsoft shifts to in-house AI models to cut generative AI costs

2 min read Editorial

Microsoft is actively working to lower its spending on generative AI by prioritizing its own internal models over third-party options. According to reports from Bloomberg, the company has started routing some user requests in Microsoft Word and Excel through its proprietary MAI (Microsoft Artificial Intelligence) models instead of relying exclusively on partners like OpenAI and Anthropic.

Reducing reliance on external providers

This move marks a significant shift in how Microsoft handles AI workloads for its most popular productivity tools. While the company continues to use third-party models for certain tasks, it is increasingly leaning on solutions developed in-house. This strategy helps mitigate the rising costs associated with advanced generative AI services, a challenge that other tech giants like Amazon, Meta, and Accenture are also addressing.

A close-up of a laptop screen displaying Microsoft Word with a document open, featuring soft focus background and clean
Users may see their AI queries in Word and Excel routed through Microsoft's internal MAI models rather than third-party services.

Expanding the internal AI stack

The transition to in-house models is part of a broader effort Microsoft has been building over the past year. At the Build developer conference in June, the company unveiled seven new MAI models designed to handle specific tasks more efficiently. These include specialized tools for code assistance and image generation, allowing Microsoft to tailor AI capabilities directly to its software ecosystem without depending solely on external APIs.

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What this means for you

For everyday Windows users, this change is largely transparent. You will likely not notice a difference in how Copilot or other AI features perform in Word and Excel, as Microsoft aims to maintain consistent quality across its model portfolio. However, this internal focus could lead to more tightly integrated AI features in the future, potentially improving speed and relevance for tasks specific to Microsoft 365 applications.

Source: Computerworld

Over to you: Do you prefer the current Copilot experience, or would you welcome more specialized in-house AI features for specific Office apps?

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Windows & Microsoft news editor at 9to5Windows. Covering everything from Windows 11 builds to enterprise updates.

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