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Microsoft Work IQ could cut AI token usage by 80%

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Author: Dewain Robinson - The Agent Dude · Watch on YouTube

Video authored by the channel shown, not by IANIA; all rights belong to the creator. Transcript and summary generated automatically; the original-language content is preserved.

Original language: English

Original video: Microsoft Work IQ could cut AI token usage by 80% · Channel: Dewain Robinson - The Agent Dude · 02:32 · Watch on YouTube

Topics: AI agents, Prompt and context engineering, Model inference and optimization, Markets and economy

The video explains how Microsoft’s Work IQ uses pre-calculated context from an organization’s graph data to reduce the analysis an AI agent needs to perform. The speaker says this could cut token usage by about 80% when deriving similar information from a graph implementation. Work IQ may also give Microsoft a way to monetize its context, while helping AI providers and organizations reduce token overhead. The video notes reported plans for write capability and describes Copilot credits as a simpler purchasing approach than adding another SKU.

  • Microsoft is making moves to monetize pre-loaded context through Work IQ.
  • Pre-calculated information can reduce the need for an AI to perform analysis itself.
  • The speaker says Work IQ can reduce token requirements by about 80% for deriving similar information from graph data.
  • The token savings could help organizations optimize AI spending.
  • AI providers and builders of co-work-type agents may want similar ways to reduce token overhead.
  • The speaker says Work IQ is already being made generally available.
  • According to news the speaker refers to, Microsoft may add write capability around September 30, beyond read-only access.
  • Instead of offering another SKU, Microsoft is looking to simplify purchasing through units of measure called Copilot credits.
Start Chapter Summary
00:00 Introducing Work IQ The speaker introduces Work IQ and contrasts it with AI agents that use the Graph API.
00:30 Pre-calculated context and token savings Work IQ can provide pre-calculated information, with the speaker citing an approximately 80% reduction in tokens needed to derive similar graph data.
01:31 Availability and possible write capability The speaker says Work IQ is becoming generally available and mentions reported plans for write capability around September 30.
02:02 Monetizing context with Copilot credits The video discusses Microsoft monetizing graph context and simplifying purchases through Copilot credits.

this allows us to be able to optimize our token spend — 00:30

you can get about an 80% reduction in the amount of tokens — 01:01

not just read-only, but write capability — 01:31

just buying units of measure, which they refer to as a Copilot credit. — 02:02

Work IQ, Microsoft, Graph API, Copilot credit, token, AI agents

00:00 Welcome to the CloudWars AI Minute. I’m your host Dwayne Robinson. We’re going to go over the things that your boss expects you to know with what’s going on in the AI world. And today, the topic is going to be Work IQ. And we’re actually starting to see Microsoft make very interesting moves inside of Work IQ. We already seen AI agents doing a lot of really interesting things, specifically around the Graph API. But the big difference here is Microsoft is really

00:30 looking to monetize the ability for them to be able to do pre-preloaded context. And so this allows us to be able to optimize our token spend and not require an AI to go do all the analysis to be able to come back and give you the information. It’s already pre-calculated and just provided to you. And what we’re starting to see is that we’re starting to see that with Work IQ, you can get about an 80% reduction in the amount of tokens that it require for you to go

01:01 derive the same sort of information out of your graph implementation of your data. So this is really powerful for organizations who’s looking to optimize their token spend. It also means that there’s going to be a lot of power coming into Microsoft around the ability for them to monetize this in a way that could be quite effective. And a lot of the major AI providers and the organizations building co-work type

01:31 of agents are going to really want to be able to do this to reduce that token overhead. Now, we’re seeing that they’re already making it generally available and things like that. And back on or coming up on September 30th, rather, we are going to see them even look to make it where it’s not just read-only, but write capability according to all the uh, things that we’re seeing in the news. So, this is going to be a very interesting world as Microsoft leans

02:02 into the ability to monetize all of this context that they have from their graph. The other thing that’s a little interesting about it as well is that they didn’t offer it as yet another skew. We’re actually seeing them look to simplify the way that you purchase to just buying units of measure, which they refer to as a Copilot credit. So, it’s very interesting and it’s a good place to continue to watch as we continue to see more and more organizations looking

02:32 to find ways to be able to optimize token spend and provide AI agents pre-calculated information to make them more effective and able to do what they need to do and do it for less and quicker compute. >> [music]