CHICAGO — Satya Nadella, the CEO of Microsoft, is set to kick off a company conference in Chicago with comments that could reveal the future direction of Microsoft’s venture into artificial intelligence.

The next generation of AI developers is advocating for generative AI chatbots to be viewed as AI “agents,” capable of taking on a wider range of useful tasks on behalf of users. However, the steep costs associated with the creation and maintenance of these AI systems have led some investors to question whether the potential of this technology might be overstated.

Recently, Microsoft indicated its readiness for a landscape where every organization would operate with a network of AI agents—ranging from basic prompt-and-response systems to fully self-sufficient entities.

In a blog update on Tuesday, Microsoft provided further insight into its vision, stating that autonomous agents could work continuously to manage customer returns or analyze shipping invoices, helping businesses minimize costly errors in their supply chains.

Microsoft’s Ignite conference, which attracts major corporate clients, represents a pivotal moment as the focus shifts towards what is being termed “agentic AI.” This transition comes at a time when users are beginning to recognize the limitations inherent in large language models that drive chatbots like OpenAI’s ChatGPT, Google’s Gemini, and Microsoft’s own Copilot. These models primarily function by forecasting the most probable next word in a sequence, making them efficient for specific writing-oriented tasks.

In contrast, technology firms are endeavoring to create AI solutions that excel in long-term planning and reasoning, allowing them to browse the internet or manipulate computers autonomously to complete various tasks for users.

However, not everyone is on board with Microsoft’s new direction. Salesforce CEO Marc Benioff has vocalized his disapproval of Microsoft’s approach, particularly pointing out its own solution, “Agentforce,” which integrates AI for tasks in sales and marketing.

Benioff criticized Microsoft’s rebranding of Copilot as “agents,” suggesting that the move demonstrates a sense of urgency. He further expressed his views on social media, referring to Microsoft’s main AI assistant, Copilot, as a “flop” due to its reported inaccuracies and the risks it poses to corporate data.