Redmond wants results from Copilot, not impressive-looking consumption figures
Concerned about cost, Microsoft is reportedly warning employees against wasteful AI use.In an email seen by 404 Media, Microsoft Executive Vice President Jay Parikh warned that individual divisions would be given targets and could face restrictions. "Tokenmaxxing is not what we are optimizing for. I want all of us focused on maximizing outcomes that move the needle for our customers and our business," the email states.The Register asked Microsoft what it made of the report, and a spokesperson told us the company had "nothing to add."
Microsoft is hardly short of cash and has continued to pour money into its AI investments, but its apparent efforts to curb wasteful AI spending bring it into line with other companies attempting to rethink how employees use AI.
Tokenmaxxing is the practice of using as many AI tokens as possible, and treating the volume as proof of productivity. A token is the basic unit used to process and bill for the input and output of AI models. If a company is measuring employees' use of AI, burning through as many tokens as possible will make the figures look rosier. However, companies need to consider the cost of those tokens alongside other factors, such as productivity. As The Register observed in April: "Tokenmaxxing isn't an AI strategy."Microsoft does not appear to be seeking an overall reduction in token use – it wants to be an AI-first company, after all. It simply wants more bang for its buck.
