Microsoft merges Copilot apps, kills failed AI features

Microsoft is merging its consumer and business Copilot apps while scrapping several unsuccessful AI features. The move acknowledges that personal and professional AI uses overlap and that its fragmented strategy failed to make Copilot competitive against ChatGPT, Claude, and Gemini. Features being cut include Group Chats, AI-generated podcasts, Copilot Labs, and Deep Research for consumers, with changes taking effect by August 18, 2026. The animated mascot Mico is also being retired. The consolidation follows an internal memo where a Microsoft executive said Copilot needed to earn the right to exist in customers lives.