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Microsoft kills off unsuccessful AI features while merging its separate Copilot apps

Microsoft is simplifying Copilot by combining its consumer and business apps, and dropping AI-generated podcasts, Group Chats, Deep Research, and its Mico character.

Microsoft has decided to retire unsuccessful AI features from its Copilot apps while merging the separate consumer and business versions. This move comes two years after Microsoft declared AI as a "generational shift" it intends to lead. The company will integrate the functionality of its consumer-facing Copilot app and the more business-oriented Microsoft 365 Copilot app.

This consolidation is seen as an acknowledgment that both personal and professional uses of AI often overlap, and that Microsoft's earlier strategy was overly complicated, making Copilot a less viable competitor to other AI models like ChatGPT, Claude, and Gemini. The changes will affect users starting August 18, 2026, with the loss of features like Group Chats, AI-generated podcasts, Copilot Labs experimental features, and Deep Research for regular users, while Researcher will replace Deep Research for paying professionals.

The animated character Mico, which accompanied Copilot, will also be discontinued. Other features may temporarily disappear during the transition, and files generated by the standalone Copilot app will be moved to OneDrive. Microsoft's goal is to create a simpler, more cohesive Copilot experience, but this decision also signals that the company has recognized Copilot has lost its way, as noted by a July report from The Information.

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