Microsoft Work IQ Could Cut AI Token Usage by 80%

In today’s Cloud Wars AI Minute, I look at how Microsoft is using Work IQ to make AI agents faster, more efficient, and potentially less expensive to operate.

Highlights

00:10 — Today, the topic is going to be Work IQ, and we’re actually starting to see Microsoft make very interesting moves inside of Work IQ. We’ve already seen AI agents doing a lot of really interesting things, specifically around the Graph API. But the big difference here is Microsoft is really looking to monetize the ability for them to be able to do preloaded context, and so this allows us to be able to optimize our token spend.

00:47 — It’s already pre-calculated and just provided to you. And what we’re starting to see is that, with Work IQ, you can get about an 80% reduction in the amount of tokens that it would require for you to go derive the same sort of information out of your Graph implementation of your data.

01:10 — This is really powerful for organizations who are looking to optimize their token spend. It also means that there’s going to be a lot of power coming into Microsoft around the ability for them to monetize this in a way that could be quite effective.

01:57 — This is going to be a very interesting world as Microsoft leans into the ability to monetize all of this context that it has from its Graph. The other thing that’s a little interesting about it as well is that it didn’t offer it as yet another SKU.