Microsoft (MSFT) is escalating its challenge to Google’s long-standing dominance in the search engine market with the introduction of “Copilot Mode” for its Edge browser. Unveiled on Monday, July 28, 2025, this new AI-powered feature aims to redefine how users interact with the web, directly competing with Google’s “AI Mode” for Chrome, which launched earlier this year and has already amassed 100 million monthly active users in the U.S. and India.
Copilot Mode is designed as an intelligent assistant capable of viewing a user’s open browser tabs and executing complex tasks on their behalf. The interface is streamlined, featuring a single input box that integrates chat, traditional search, and web navigation functionalities. This allows users to leverage either text or voice commands to perform actions such as comparing travel listings across multiple open tabs, promising a more efficient and integrated Browse experience.
Currently, Copilot Mode is being offered free of charge for a limited period. Microsoft’s future plans include allowing users to grant the AI access to their browser history and even credentials, enabling it to handle more intricate tasks like finding and booking a paddleboard rental directly from the browser. This deep integration signifies a move towards a truly proactive and personalized Browse assistant.
The fierce competition in AI-powered search underscores a pivotal shift in the tech landscape. The burgeoning popularity of generative AI chatbots, such as OpenAI’s ChatGPT, poses a significant threat to traditional search engine traffic by offering direct, conversational answers rather than just links. Both Microsoft and Google are heavily investing in AI integration to retain and expand their user bases in this evolving environment.
Microsoft is scheduled to report its quarterly earnings on Wednesday, where industry analysts are widely expected to question CEO Satya Nadella on the strategic implications and future development of Copilot Mode, given its potential to reshape the competitive dynamics of the search market.
