AI Agent and Copilot Podcast: Microsoft AI Model ‘Self Sufficiency’ Requires Customers to Hedge Bets

Welcome to this AI Agent & Copilot Podcast, where we analyze the opportunities, impact, and outcomes that are possible with AI.

In this episode, I speak with about RealActivity CEO Paul Swider who weighs in on Microsoft’s publicly disclosed plans to increase its focus on internal AI model development, how that could impact customers using current Microsoft tools powered by OpenAI models, and Microsoft’s aggressive prediction about how AI and agents will impact professional jobs.

Highlights

Microsoft’s Motivations, Customer Impact (1:25 )

Swider notes that Microsoft’s move is a hedge at both the business and technology levels. There’s potential impact on existing workflows, especially in healthcare, and he notes the importance of connecting the dots for consumers and startups. Organizations must plan for potential changes and impacts if underlying AI models change, especially in mission-critical systems. As agent technology is evolving, it’s important to have flexibility in model selection across different levels of the stack.

Healthcare Industry Focus (7:30)

Microsoft’s SaaS offerings, like Microsoft Copilot and Copilot Studio, are already offering some model choice. Swider advises healthcare organizations to have a plan in place, including potential model switches, to hedge against Microsoft’s moves. It’s important for customers to be testing and evaluating models. Multi-cloud strategies are crucial for mission-critical healthcare systems. Some customers expressed concern about the potential disruption.

(In a related blog post, Swider noted that “Microsoft controlling its own models could accelerate the development of healthcare-specific capabilities” including more robust HIPAA and compliance frameworks, specialized medical reasoning and clinical documentation understanding, as well as tighter integration with Azure Health Data Services. The potential downside: reduced competitive pressure and limited customer model choice.)

Job Market Impact and Partner Opportunities (11:05)

Microsoft’s Mustafa Suleyman, CEO of AI, commented about AI taking over professional jobs in less than two years. Swider expresses some skepticism about that aggressive timeline and shares his perspective on job market shifts. He compares the current situation to past technological transitions, noting that roles often evolve rather than disappear. He adds that the shift presents opportunities for Microsoft partners.

AI Agent & Copilot Summit is an AI-first event to define opportunities, impact, and outcomes with Microsoft Copilot and agents. Building on its 2025 success, the 2026 event takes place March 17-19 in San Diego. Get more details.

.