Home / Microsoft News Highlights: New AI Features, Windows Recall, and Global Commitments

Microsoft News Highlights: New AI Features, Windows Recall, and Global Commitments

By: Jasmin Espinas
May 6, 2025

Microsoft is celebrating its 50th year in the business. Recent Microsoft news reflects its ongoing impact on global tech innovation, business infrastructure, and digital services after half a century.

Microsoft is using artificial intelligence to improve its software development, testing new employee work models, and updating its global data and security policies.

These updates show the company’s current focus areas and plans for future improvements. Below is a summary of its most recent developments.

Latest Microsoft News: Q3 Earnings and Outlook

Microsoft reported its Q3 fiscal 2025 earnings after the market closed on April 30, delivering results that beat expectations. The company posted revenue of $70.1 billion, up 13% year-over-year (15% in constant currency).

Meanwhile, net income reached $25.8 billion, an 18% increase from the same quarter last year (19% in constant currency). This growth was driven by strong performance in Microsoft’s cloud computing and artificial intelligence business during the January–March quarter, despite broader turbulence in the tech sector.

Operating income rose 16% to $32.0 billion, and diluted earnings per share came in at $3.46, also up 18%.

CEO Satya Nadella emphasized the company’s continued focus on AI and cloud technologies. “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” he said.

“From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers,” Nadella added.

The Microsoft Cloud segment, driven by Azure, reported $42.4 billion in revenue, up 20% from a year ago (22% in constant currency), reflecting strong demand for its AI-powered cloud services. Analysts had previously forecast revenue of $68.44 billion and net income of $23.94 billion, both of which Microsoft exceeded.

Despite ongoing market concerns, including tariff policies tied to President Trump, Microsoft’s strong Q3 results validated analysts’ confidence. Experts at Wedbush, Visible Alpha, and Goldman Sachs had anticipated solid growth, especially in AI and cloud services, and the company delivered. Their optimism was grounded in Microsoft’s momentum in AI innovation, which continues to drive revenue and solidify its leadership in enterprise technology.

AI Now Writes 20 to 30% of Microsoft’s Project Codes

During a fireside chat at Meta’s LlamaCon conference on April 27, Microsoft CEO Satya Nadella revealed that AI now writes 20% to 30% of Microsoft’s internal codebase.

This insight underscores the growing reliance on AI tools like GitHub Copilot, which assists developers by suggesting code in real time. However, Nadella’s figures are best viewed cautiously, as Microsoft has not fully detailed how it distinguishes AI-generated code from human-written input.

Furthermore, looking to the future, Microsoft’s CTO, Kevin Scott, has predicted that by 2030, AI might generate 95% of coding work. Consequently, this trend suggests that human creativity and AI-driven automation will become more increasingly intertwined.

Microsoft News: A Future Where Every Employee Is An “Agent Boss”

Microsoft sees a future where AI makes its employees’ jobs better, not takes them away. The company aims to make every employee an “agent boss”—employees who lead, manage, and delegate to AI agents.

Moreover, Microsoft believes this will lead to higher productivity and less repetitive work. Although experts worry that more jobs might be automated and lost, Microsoft insists its AI plans are about lifting people up, not replacing them.

According to Microsoft executive Jared Spataro, this transformation will occur in three distinct phases:

First, every employee will gain an AI assistant to automate mundane tasks and enhance productivity.
Then, these AI assistants will act like digital team members. They’ll be able to handle some tasks by themselves in different areas of work.
Lastly, employees will run end-to-end work processes. They’ll use the assistants to complete business with minimal supervision.

Microsoft News: Reinforcing Data Sovereignty In European Operations

On April 30, Microsoft announced new commitments to reinforce European data sovereignty, pledging to resist any U.S. government orders to shut down its data centers in Europe.

Microsoft President Brad Smith emphasized that while such directives are actively discussed in Washington, they remain a pressing concern among European stakeholders, including governments.

To address these concerns, Microsoft introduced five digital commitments to Europe. These commitments are part of Europe’s broader goal to rely less on cloud services from the U.S. and gain more control over its digital systems. They include:

Increase the size of their data centers in the region by 40% within the next two years.
Plan to expand their operations across 16 European countries.
Uphold Europe’s digital resilience during geographical volatility.
Always help and protect Europe’s cybersecurity.
Help strengthen Europe’s economic competitiveness.

Microsoft News: Windows Recall, Copilot+ Updates, Xbox Prices

After initial setbacks, Microsoft’s much-anticipated Windows Recall feature is now live for Copilot+ PCs. Recall lets PCs take encrypted snapshots of user activity, helping users “recall” past tasks, websites, and files.

Initially, Microsoft delayed the release due to security concerns. But after thorough testing and adding more privacy features, it’s finally ready for use. And more importantly, Recall encrypts data and ensures it stays local to the device, accessible only after Windows Hello authentication.

Alongside Recall, Microsoft launched another feature called Click To Do. This feature allows users to use AI to extract text, change images, and interact with what’s on their screen by just clicking once.

Additionally, Microsoft is enhancing AI-powered search across Windows 11. Now, users can use natural language to find files, settings, and apps, thanks to improvements in Windows Search, File Explorer, and the Settings app.

All these features are part of the April 2025 update and will gradually become available to Copilot+ PCs that use Snapdragon, Intel, and AMD processors.

Microsoft is also increasing prices on its Xbox consoles, games, and accessories around the world, starting May 1. The move comes as uncertainty continues over possible tariffs on consumer tech products. With the change, some new first-party Xbox games will now cost up to $79.99, up from the previous $69.99.

Microsoft News: The Microsoft Secure Future Initiative (SFI)

With the Microsoft Secure Future Initiative (SFI), the company has launched its most ambitious cybersecurity engineering effort to date. At the same time, this initiative focuses on embedding security into every layer of product development and enterprise governance.

SFI also highlights Microsoft’s strong commitment to cybersecurity in response to increasing threats and the growing shift to AI-driven and cloud-based systems.

Key elements of the initiative include:

A Secure by Design UX Toolkit. This toolkit has been tested by 20 teams and used by 22,000 employees.
Microsoft Defender now has more than 200 new threat detection features, which address new types of cyberattacks.
A change in company culture to ensure every department considers security as a top priority.

The Next 50 Years for Microsoft: Setting the Stage

With 50 years in the industry, Microsoft is setting the stage for a transformative new era defined by AI, global digital infrastructures, and cybersecurity resilience. Because of this, the company continues to transform how to integrate technology into every aspect of modern life.

To stay updated on how Microsoft is advancing into the next 50 years of innovation, subscribe to Financial Daily Update today to receive more Microsoft news and insights about other major technology companies in the industry.