Ray Smith, vice president of AI Agents at Microsoft, told The National that building agents and interacting with AI will soon be a crucial skill for humans in the workforce. Photo: Microsoft
Ray Smith, vice president of AI Agents at Microsoft, told The National that building agents and interacting with AI will soon be a crucial skill for humans in the workforce. Photo: Microsoft
Ray Smith, vice president of AI Agents at Microsoft, told The National that building agents and interacting with AI will soon be a crucial skill for humans in the workforce. Photo: Microsoft
Ray Smith, vice president of AI Agents at Microsoft, told The National that building agents and interacting with AI will soon be a crucial skill for humans in the workforce. Photo: Microsoft

Inside Microsoft’s big bet on AI agents – personal assistants for the digital age


Cody Combs
  • English
  • Arabic

On Microsoft's vast headquarters campus in Redmond, Washington, it's not hard to find employees excited about the company's push for everyone to have access to AI agents – personal assistants driven by artificial intelligence and tailored to an individual's needs.

One of the biggest proponents of these little helpers is the technology giant's vice president of autonomous agents, Ray Smith.

“I do think building agents and building capabilities to interact with AI is going to be a key kind of credential that every human will have in the future,” he told The National.

Microsoft's goal of putting AI agents into the mainstream was solidified in January with a social media post from chief executive Satya Nadella as he introduced Microsoft 365 Copilot Chat.

“This is a big step forward in making AI accessible to every employee in every business. It’s not just about having access to Copilot. It’s about unleashing a swarm of intelligent agents to supercharge your productivity and unlock the full return on investment of AI,” he said in a video.

“People often mystify agents, but I think of it like creating an Excel spreadsheet. Building agents should be as simple as that.”

Microsoft described AI agents as a way for humans to have their own assistants that can be delegated to do certain tasks, in theory freeing up humans to pursue other items.

“Instead of just assisting you, agents can work alongside you or even on your behalf,” a portion of the company's AI agent website section explains.

Microsoft hopes that AI agents will be a major part of a new ecosystem, essentially becoming the new apps for an AI-powered world. Photo: Microsoft
Microsoft hopes that AI agents will be a major part of a new ecosystem, essentially becoming the new apps for an AI-powered world. Photo: Microsoft

The ability to plug-in existing AI agents and create new robot helpers is sprinkled throughout Microsoft's 365 Copilot offering, and it's a major feature within company's Copilot Studio tool.

Mr Smith explained the company's strategy to make agents prevalent throughout its Copilot AI platform, and therefore, if Copilot grows as the company hopes, the entire industry.

“Our vision is the future is going to be humans interacting with an AI assistant. … So you'll have one assistant, or you might have hundreds, if not thousands of agents or apps that are doing parts of your process, and it's going to be very much humans in the loop managing these agents as they do work for you, as they escalate, as they come back for more guidance.”

Mr Smith said Microsoft's tools allow for users with relatively limited experience to easily create agents to bolster their workflow.

It's relatively easy, he said, for someone to design an agent by giving it a goal or objective – like examining invoices as these are submitted, and extracting all their data to specific areas.

Pets At Home, Thomson Reuters and Dow Chemical are some of the companies that Mr Smith says are early adopters of using AI agents to streamline processes, quicken workflows and increase revenue.

Microsoft says that it expects the ability for average people to build AI agents will soon be a game changer. Photo: Microsoft
Microsoft says that it expects the ability for average people to build AI agents will soon be a game changer. Photo: Microsoft

With more experienced programming, he said, users can also create agents to evaluate other agents. But ultimately the tools are designed to help free humans up to get work done.

“At Microsoft, we look at them as the apps for getting work done that will surface within our user interface through Copilot, and agents really just get the work done and give us agency,” he said.

Microsoft is not alone with the idea, and the technology landscape is filled with players pitching similar AI agent visions. Tech's history is littered with once promising ideas that fail to gain traction.

Mr Smith, however, said Microsoft has several key differentiators to succeed with its AI agent push.

Microsoft's campus in Redmond, Washington is abuzz with hopes for what AI agents might do for customers. Photo: Cody Combs
Microsoft's campus in Redmond, Washington is abuzz with hopes for what AI agents might do for customers. Photo: Cody Combs

Microsoft has ample experience and “power automate connectors” to more than 1,500 existing systems, he noted. “That gives you action into Oracle, SAP, WorkDay and Salesforce … you can now add a connector to these agents.”

He also pointed to what he described as Microsoft's seasoned history of having enterprise-grade knowledge that gives the company the ability to hit the ground running and instil confidence in those wanting to implement AI agents into their workflow.

“Wherever you need a human to validate, check or cross reference something, that can be done by an agent,” he said, pointing out that they're perfect for insurance claims and invoice processing, just to name a few areas.

Microsoft officials say they hope customers use Copilot and AI agents to reimagine business processes and tasks. Photo: Microsoft
Microsoft officials say they hope customers use Copilot and AI agents to reimagine business processes and tasks. Photo: Microsoft

According to Microsoft, since launching autonomous AI agents in early 2024, more than 100,000 organisations have created agents using its Copilot Studio offering, which is still in the early stages of deployment.

“We're hearing back from customers who build these early agents and deploying them to production, and they like the speed of prototyping their use cases and getting them into production,” Mr Smith said, adding that in his eyes, Microsoft is building a steady pipeline of customers who are using the company's products to create AI agents.

SERIE A FIXTURES

Saturday

AC Milan v Sampdoria (2.30pm kick-off UAE)

Atalanta v Udinese (5pm)

Benevento v Parma (5pm)

Cagliari v Hellas Verona (5pm)

Genoa v Fiorentina (5pm)

Lazio v Spezia (5pm)

Napoli v Crotone (5pm)

Sassuolo v Roma (5pm)

Torino v Juventus (8pm)

Bologna v Inter Milan (10.45pm)

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The Old Slave and the Mastiff

Patrick Chamoiseau

Translated from the French and Creole by Linda Coverdale

Updated: February 03, 2025, 3:00 AM