Microsoft Introduces AI-Powered People Skills Feature in Copilot, Reshaping HR Technology
Microsoft's new People Skills feature integrates skills inference and management into Copilot and Microsoft 365, transforming the HR technology landscape.
Microsoft has unveiled a new skills infrastructure as part of its Copilot and Microsoft 365 suite, aimed at revolutionizing how companies manage employee skills. The feature, called Microsoft People Skills, includes a skills-inference agent and a skills management agent, enabling organizations to automatically identify and monitor employee skills. This development, years in the making, could significantly alter the HR technology market.
How It Works
The system infers skills from user profiles and activity data, mapping them to a customizable taxonomy. This data powers the Skill Agent, which integrates with Copilot Chat, Microsoft 365, and Viva services. Key functionalities include:
- Skills discovery: Automatically identifies employee skills.
- Skills management: Allows leaders to view, edit, and manage team skills.
- LinkedIn integration: Aligns with LinkedIn’s skills taxonomy for seamless profile synchronization.
Market Implications
This announcement poses a challenge to existing HR tech vendors like Workday, SAP, Oracle, and Eightfold, which offer similar skills-tagging systems. Microsoft’s advantage lies in its vast user base and AI capabilities, potentially making it a dominant player in skills data. The integration with Copilot could further enhance its utility for workforce planning, project staffing, and career development.
Strategic Applications
The Microsoft 365 Graph provides a rich data source for organizational planning. Coupled with Copilot, the system could enable:
- Strategic workforce planning: Identifying skill gaps and future needs.
- Internal mobility: Matching employees to projects or roles.
- Career development: Personalized skill-building recommendations.
Additional Resources
- The Mercury Release of Galileo™ Signals a New Era for Intelligent Agents
- Degreed Plots A Comeback With Major AI Announcements
Microsoft’s entry into this space signals a significant shift, with potential long-term impacts on HR technology and organizational management.
About the Author

Dr. Sarah Chen
AI Research Expert
A seasoned AI expert with 15 years of research experience, formerly worked at Stanford AI Lab for 8 years, specializing in machine learning and natural language processing. Currently serves as technical advisor for multiple AI companies and regularly contributes AI technology analysis articles to authoritative media like MIT Technology Review.