# Capacity vs Microsoft in support automation

> A landscape look at the market for AI support automation, framed by two very different bets: Capacity, David Karandish's $100M-ARR platform built in St. Louis around a single AI knowledge layer, versus Microsoft, which now ships a general-availability Service Agent inside Microsoft 365 Copilot. It maps how the support ticket is being replaced by AI agents, why the focused startup and the platform giant are fighting over the same buyer, and what companies should actually weigh when they choose.

## Achievements

- Capacity reported crossing $100M in annual recurring revenue as a support automation platform.
- Capacity built a single AI Knowledge Orchestration Layer powering omnichannel AI agents, agent assist, auto-QA, conversational intelligence and outbound campaigns.
- Microsoft moved Service Agent to general availability inside Microsoft 365 Copilot in June 2026, tying case data, knowledge and actions into one interface.
- Copilot Studio gives enterprise IT a way to build and deploy custom support agents on Microsoft's own platform.

## Latest updates

- **2026-06** — Microsoft's Service Agent reached general availability in Microsoft 365 Copilot, requiring a Dynamics 365 Customer Service license for case data and a Copilot license for the fully integrated experience.
- **2026** — Capacity reported passing $100M ARR and leaned into an 'agentic support automation' positioning against suite vendors.

## Links

- Website: https://capacity.com/
- LinkedIn: https://www.linkedin.com/company/teamcapacity

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Profile page: https://yespress.io/capacity-vs-microsoft-support-ticket-fight
Published by YesPress — https://yespress.io
Last updated: 2026-08-07