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A sleek computer monitor displays code in a dark-themed IDE, illuminated by blue lighting in a modern tech workspace.Microsoft Prepares for GPT-5 and Copilot 'Smart Mode'​

Main Points​

1. References to GPT-5 in Copilot
  • Microsoft’s Copilot web app contains references to GPT-5, suggesting upcoming integration of OpenAI’s next-generation model.
  • The new “smart mode” is described as allowing Copilot to automatically select the best AI model for each user request, reducing the user’s need to choose models manually.
  • As of now, internal Copilot versions still use GPT-4, and there is no official mention of GPT-5 in the app interface.
2. Microsoft’s Strategic Advantage with OpenAI
  • Microsoft gets early access to new OpenAI models via its exclusive, multi-billion-dollar partnership with OpenAI (started with a $1B investment in 2019 and expanded since).
  • Microsoft has a demonstrated history of deploying OpenAI’s latest models before public announcement—such as the early integration of GPT-4 in Bing and the “o1” reasoning model in Copilot.
  • This privileged access gives Microsoft a competitive edge: they can refine deployments and gather feedback before their rivals.
3. Industry Shift Toward Unified AI Interfaces
  • Copilot’s “smart mode” follows an industry trend: major tech companies want to simplify AI use for end-users by hiding model selection complexity.
  • Google offers a similar feature (AI Mode) that auto-selects the best-suited AI model/capability for each query, reportedly boosting complex search usage by 10%.
  • The competitive advantage is moving away from merely having the “best” model, to delivering a seamless, intelligent interface that selects and orchestrates models behind the scenes.

Recent Microsoft Developments​

  • Copilot has been quickly adopting new OpenAI advances, including unannounced and experimental models.
  • Microsoft declined comment on GPT-5 references or smart mode details.
Sources and further reading:

What This Means​

  • For Users: Expect Microsoft Copilot to become even easier and more powerful, as it will decide which AI model is best for your needs, without manual intervention.
  • For AI industry: The battle is shifting from pure model capability to orchestration and user experience. "Smart" interfaces that abstract model choices could become the new standard.
  • For competitors: Microsoft's exclusive and early access to OpenAI models allows it to stay ahead in commercial AI deployment.
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Source: Tech in Asia https://www.techinasia.com/news/microsoft-reportedly-prepares-gpt5-copilot-smart-mode/
 

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