Key facts
- Microsoft is merging its consumer-facing Copilot app and the business-oriented Microsoft 365 Copilot app.
- Features like Group Chats, AI-generated podcasts, Copilot Labs, and Deep Research will be removed by August 18, 2026.
- Microsoft's animated character, Mico, will also be discontinued.
- Files created with the standalone Copilot app will be moved to OneDrive.
Microsoft is consolidating its Copilot-branded applications, merging the consumer and business versions into a single app. This strategic shift also involves discontinuing several AI features that have not met success, including Group Chats, AI-generated podcasts, Copilot Labs experimental features, and Deep Research, with these changes set to take effect by August 18, 2026. The company is also retiring its animated AI character, Mico. Files generated by the standalone Copilot app will be migrated to OneDrive. This consolidation acknowledges the overlap between personal and professional AI use and aims to create a more cohesive experience, positioning Copilot as a stronger competitor against platforms like ChatGPT, Claude, and Gemini. The move follows similar consolidation trends among other AI developers, such as Claude merging Cowork into Chat and OpenAI integrating Operator into ChatGPT.