Microsoft is merging its consumer and business Copilot applications by August 18, 2026, while removing several unsuccessful AI features. The tech giant will combine the standalone consumer app with Microsoft 365 Copilot to address a strategy that proved too complicated to compete effectively with ChatGPT, Claude, and Gemini. This consolidation aligns with moves by competitors such as Anthropic merging Cowork into Chat and OpenAI integrating Operator into ChatGPT. Users will lose access to Group Chats, AI-generated podcasts, Copilot Labs, and Deep Research, though paying professionals will gain the Researcher tool as a replacement. The company is also retiring Mico, the animated floating blob character, and migrating existing files to OneDrive during the transition. Internal reports suggest the app needed to earn the right to exist by shedding features that did not function well for customers. The shift aims to create a simpler experience after admitting prior efforts lost their way.
- Group Chats and AI podcasts are discontinued for all users.
- Deep Research is replaced by the Researcher tool for subscribers.
- Mico the animated character is permanently removed.
