Microsoft merges its Copilot apps, cuts underused AI features

Two years ago, Microsoft described AI as a “generational shift” in technology that it wanted to lead. Today, the company is merging its Copilot-branded consumer and business apps, and ditching a number of unsuccessful AI features. As initially reported by GeekWire and detailed in Microsoft’s support documentation, the company will combine the functionality of its consumer-facing Copilot app and the more business-oriented Microsoft 365 Copilot app.

The move acknowledges that personal and professional uses of AI often overlap, and that Microsoft’s prior strategy was too complicated to make Copilot a viable competitor to ChatGPT, Claude, and Gemini. It follows a broader consolidation in the AI app space that has seen Claude merge Cowork into Chat, OpenAI merge its agentic feature Operator into ChatGPT, and Google add specialized capabilities — like combining deep research and web browsing — into its Gemini app.

According to Microsoft, consumers will lose access to Group Chats, AI-generated podcasts in Copilot, Copilot Labs experimental features, and Deep Research by August 18, 2026. For paying professional users, Researcher will offer a replacement for Deep Research, at least. The company will also ditch its animated Copilot character, Mico, a floating blob reminiscent of an AI-ified Clippy. Other features may temporarily disappear during the transition, Microsoft warns, and files generated by the standalone Copilot app will be migrated to OneDrive.

While Microsoft says the goal is a “simpler, more cohesive experience,” it’s also an admission that Copilot has lost its way. In July, The Information reported that Microsoft EVP Jacob Andreou, who oversees Copilot, said in an internal memo that the app needed to earn “the right to exist” in its customers’ lives, which required moving on from features that didn’t work.

Why it matters

Microsoft is essentially conceding that a fragmented, feature-heavy approach to Copilot didn’t work against simpler rivals — a retrenchment likely to shape how it competes on consumer AI going forward.