Microsoft to Merge Copilot Apps and Discontinue Failed AI Features

Microsoft, which two years ago called AI a 'generational shift', is now merging its consumer Copilot app and the business-oriented Microsoft 365 Copilot app. The move reflects that personal and professional AI uses often overlap and that Microsoft's previous strategy made Copilot less competitive against rivals like ChatGPT, Claude, and Gemini. This follows similar consolidation across the industry, such as Claude merging Cowork into Chat, OpenAI integrating Operator into ChatGPT, and Google adding deep research and web browsing to Gemini. By August 18, 2026, consumers will lose access to Group Chats, AI-generated podcasts, Copilot Labs experimental features, and Deep Research, though professional users may get a replacement via Researcher. Microsoft will also drop Mico, an animated character for Copilot, and warns that other features may temporarily disappear; files from the standalone app will be migrated to OneDrive. The company says the goal is a 'simpler, more cohesive experience', admitting Copilot has lost its way after an internal memo noted it needed to earn 'the right to exist'.