Microsoft has a problem: lack of demand for its AI products

As a .NET developer who actually likes some Microsoft products, I can say this: the Copilot series is the worst thing they've shipped since Internet Explorer—and honestly, it might overtake it. The sad part is they had a huge head start before competitors gained access to powerful models, yet this is what we got.

If you haven’t seen how bad it is, here’s one example: Copilot Terminal. In theory, it should help you with terminal commands. Sounds great. In practice, it installs a chat panel on the right side of your terminal that has zero integration with the terminal itself. It can’t read what’s written, it can’t send commands, it has no context, and the model response time is awful. What’s the point of a “terminal assistant” that can’t actually assist the terminal?

This lack of real integration is basically the core design of most Copilot products. If you’ve been lucky enough to avoid them, good for you. If your company forces you to use them because they’re bundled with a Microsoft license, I genuinely feel your pain.

Try to think about it like a bunch of merchants running to line up in front of you as fast as possible with anything that resembles a product you might buy. The only thing they were successful at thus far was recognizing that something needs to be in your terminal, and they ran as fast as possible to your terminal with anything to beat others to the front of the line. I suppose they are doing this with all their efforts. A universe where a C-exec said in no uncertain terms, "get anything out there", is the very universe we're in.

Apple is the only merchant not running to line up with anything at the moment.

IMHO, one company needs to make the bold move and make a fork of their OS that is AI native with AI native apps/workflow and phase out the old paradigm. It'll have to be two product lines, but I think the new OS will have uptake like we've never seen before.