Ceding Control: How Copilot+ and PCs May Make Enterprises Dependent on Microsoft

The Rise and Fall of Open Computing in the Personal Computer Era

The personal computer (PC) transformed society, empowering individuals with unprecedented access to technology. Its openness and modularity allowed users to customize their machines and maintain control over their digital experiences. However, this ethos is diminishing, ushering in an era of closed, tightly controlled computing.

The Decline of Open Computing

In recent years, the hallmark of the PC era—openness—has steadily eroded. This shift began with the rise of less upgradable laptops and mobile devices, particularly with Apple’s successful iPhone and MacBook lines. While these products offer sleek designs and tight integration, they sacrifice user upgradeability and repair rights.

Apple's walled-garden approach extended to software as well. The iOS App Store model, quickly emulated by Google with Android, gave Apple significant control over the applications available on its devices. This "curated computing" model, initially framed as a security enhancement, acclimated users to a reality where they no longer had complete control over their machines.

The emergence of cloud computing further diminished user autonomy. Google led this trend, moving core productivity apps like Gmail and Google Docs to the browser, reducing offline functionality and increasing personal data access for cloud providers. Chrome OS epitomized this philosophy, effectively rendering devices as gateways to Google services.

As cloud-based AI assistants such as Siri and Google Assistant integrated into our devices, the nature of user interaction transformed. Instead of merely responding to commands, these devices now influence our digital activities, often prioritizing their manufacturers' agendas over user needs.

This transformation extends beyond PCs; the internet itself has shifted from a decentralized network to one dominated by a few powerful companies. Google, which held a 95% share in the search market even before AI's ascent, established itself as the gatekeeper of online information. The introduction of its Gemini AI has only deepened this role, filtering access to information while Facebook's Llama AI offers constant AI-driven suggestions within its social media apps, further undermining individual agency.

Microsoft's Move Toward Closed Computing

In a notable shift, Microsoft began to reshape Windows to align with this new model. With the release of Windows 10 and 11, this once open operating system became increasingly cloud-centric and update-driven. The advent of AI-powered computers could signal the death knell for the traditional open computing paradigm.

Microsoft's "Copilot+ PCs" signify its boldest step toward a cloud-dependent computing model. Featuring dedicated neural processing units (NPUs), these devices promise unmatched speed and intelligence. However, these advanced features are inextricably linked to Microsoft's cloud infrastructure.

Functions like “Recall,” which continuously monitors user activity for quick access to information, and “Cocreator,” which assists in creative tasks, are deeply integrated with Microsoft's servers. The new “Copilot” key requires an internet connection to summon the AI assistant, effectively funneling users into Microsoft’s tightly controlled ecosystem, where the company exerts unprecedented influence over the user experience.

This model, splitting functionality between local hardware and remote servers, blurs the line of ownership; users find themselves increasingly dependent on Microsoft’s digital domain. The competition, choice, and autonomy that characterized the PC era are rapidly disappearing.

A New Era of Anticompetitive Practices?

Microsoft’s current trajectory is concerning given its history of antitrust issues. In the late 1990s, the U.S. Department of Justice accused Microsoft of using its monopoly in the PC market to suppress competition, particularly through bundling Internet Explorer with Windows. This case set a pivotal precedent, holding powerful companies accountable for anti-competitive behavior.

Despite these challenges, Microsoft has only grown more dominant, and the parallels between its past practices and its current AI-centric strategy raise alarms.

The Limits of Government Oversight

Unfortunately, the prospects for robust regulatory responses are dim. Big Tech’s lobbying efforts have reached unprecedented levels, with major players collectively spending over $28 million on lobbying in early 2024—a significant increase from the previous year. This trend continues as companies like Meta, Amazon, and Google invest heavily to shape the regulatory landscape around AI, solidifying their dominance and complicating efforts by startups and regulators alike.

Understanding the Business Risks of AI PCs

For businesses, the rise of AI-powered PCs like Microsoft's Copilot+ presents a dual-edged sword. While the promise of increased productivity and innovative capabilities is attractive, the associated vendor lock-in poses significant risks. Reliance on proprietary cloud services can make it difficult for businesses to switch providers, hindering their control over their computing infrastructure.

Although alternatives to Microsoft’s AI exist, they often lack the same level of integration with the operating system, requiring users to navigate additional hurdles for a comparable experience. This dynamic mirrors Microsoft’s past bundling practices, giving the company a significant advantage over competing AI providers.

The implications extend into consumer markets as well. Windows users seeking seamless AI experiences find themselves nudged towards Copilot, as standalone alternatives remain scarce. This creates a scenario where Microsoft’s offerings dominate, shaping how users interact with technology.

Furthermore, the constant monitoring aspect of features like "Recall" raises concerns over privacy and security. Sensitive business data could be continuously sent to Microsoft’s servers, with users having limited visibility into data usage or access. The decision-making processes of AI models remain opaque and unaccountable, risking alignment with Microsoft’s priorities rather than those of its users.

Regulatory compliance for companies handling sensitive information becomes increasingly complex as they cede control over their computing environments to third parties.

Retaining Digital Autonomy

As the allure of AI PCs grows, businesses must carefully consider the trade-offs involved. While productivity gains may be immediate, the long-term costs to autonomy, security, and flexibility are substantial.

The preferable path for organizations is to invest in open, interoperable solutions that afford greater control and customization. While this approach may require more initial effort, it secures sovereignty over crucial organizational data and computing infrastructure.

A Call to Action for Users

What can individuals and organizations do in light of this shift? The most direct action is to vote with our wallets—rejecting tech that compromises autonomy and supporting open-source and user-respecting alternatives where possible.

However, individual actions alone may not suffice against the immense power held by tech giants. To effectively protect the open computing model, we need collective efforts to foster viable alternatives to the closed ecosystems created by companies like Apple, Google, and Microsoft.

Organizations like the Fund for Universal Technology Openness (FUTO) play a crucial role in promoting open technologies and software that respect user autonomy. By funding open-source initiatives and creating decentralized software options, they aim to ensure these solutions remain accessible and competitive against the offerings of tech giants.

Maintaining a focus on digital freedom requires effort and determination beyond the convenience of AI-controlled devices. The promise of personal computing—the empowerment of individuals—must not be sacrificed at the altar of corporate control. The movement toward a fully open, user-sovereign computing environment may be waning, but it's not beyond saving. Through conscientious technological choices and support for organizations like FUTO, we can preserve our digital rights and autonomy.

As a final note, holding onto older PCs equipped with open-source systems like Linux may provide the last bastions of true personal computing. These machines, coupled with decentralized software, can ensure that individual autonomy endures in an increasingly corporate-dominated digital landscape.

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