Microsoft Is Merging Copilot Apps and Abandoning Unsuccessful AI Features

Two years ago, Microsoft compared artificial intelligence technology to a generational shift in the industry and planned to become a leader in this field. However, the technology giant has now decided to merge separate Copilot apps for consumers and business users and shut down a number of AI features that failed to live up to expectations. These changes show that the company is revising its strategy to compete more effectively with major rivals in the AI market, such as ChatGPT, Claude, and Gemini. According to Techcrunch.com reports .

According to GeekWire and details outlined in Microsoft's official support documents, the functionality of the Copilot app for personal use will now be merged with the enterprise-focused Microsoft 365 Copilot app. The move acknowledges that personal and professional AI tasks often overlap and that the company's previous strategy was too complicated for users. It also reflects the broader consolidation trend in the AI app market.

Feature Cuts and Changeover Date

According to Microsoft's official statement, users will lose access to several features by August 18, 2026, including group chats, AI-generated podcasts in Copilot, experimental Copilot Labs features, and Deep Research. The company is also abandoning an animated character called Mico. The floating character had reminded users of a modern AI interpretation of the familiar Clippy assistant.

Microsoft has warned in advance that some features may temporarily stop working during the transition. At the same time, all files created through the standalone Copilot app are scheduled to be automatically moved to the OneDrive cloud storage service. For paid professional users, the Researcher feature is expected to replace Deep Research.

Broader Trends in the AI Market

These changes reflect not only Microsoft's internal policy but also moves by major players across the AI industry. Other technology companies have previously taken steps to simplify their apps as well. Claude, for example, added the Cowork feature to its main Chat section, while OpenAI integrated the agentic Operator feature into ChatGPT. Google, meanwhile, continues adding specialized capabilities such as Deep Research and web browsing to the Gemini app.

Microsoft executives say the main goal of the updates is to make the Copilot experience simpler and more unified. However, the move also suggests that Copilot has somewhat lost its direction. As The Information reported in July, Jacob Andreou, the vice president overseeing Copilot, emphasized in an internal memo that the app needed to abandon ineffective features if it was to earn a place in customers' lives.