Jefferies Names Microsoft 365 AI Integration Most Underappreciated Driver for Growth

Jefferies analyst Brent Thill views Microsoft 365 Cloud AI integration as the most underappreciated growth driver in Microsoft's artificial intelligence narrative. While market attention remains largely focused on the Azure cloud platform, Thill argues embedding AI capabilities and agents into core productivity tools like Word and Excel opens major pathways to expand average revenue per user. A key catalyst includes the Microsoft E7 enterprise package priced at $99 per user monthly. With many clients already paying approximately $90 per user monthly for an M365 E5 license combined with Copilot, moving to E7 presents a modest incremental upgrade cost.