Microsoft abandons personal assistant race and focuses Copilot on enterprise market

A Bloomberg report published on Friday, 25, revealed that the tech giant has decided to end its efforts to turn Copilot into a direct competitor to consumer chatbots like ChatGPT, Gemini, and Claude. Instead, the company is repositioning the product as an enterprise solution, where it already has a strong user base.

This change follows a pattern of signals that have accumulated over the year. In August, Microsoft merged the consumer version of Copilot with Microsoft 365 for businesses and removed features that were poorly received, such as group chats, AI-generated podcasts, the experimental Copilot Labs, and the in-depth research tool Deep Research—replaced by a version called Researcher for professional subscribers. The animated avatar Mico, introduced in October 2025 as the “new face” of the assistant, was also removed.

Contrasting performance across segments

In the enterprise segment, Microsoft 365 Copilot already has over 30 million paid subscribers, and the rate of new hires more than doubled from one quarter to the next, according to the company. However, in the personal sphere, Copilot’s use as a consumer chatbot remains far behind ChatGPT, Gemini, and Claude, according to Fortune. Even the developer version, GitHub Copilot, has lost ground to competitors like Cursor and Anthropic’s Claude Code.

Furthermore, brand confusion has hindered adoption. Bloomberg reported that at one point, Microsoft maintained over a dozen different versions of Copilot simultaneously, leaving customers unsure which one to use.

Internal reorganization and Windows adjustments

In March, an internal memo signed by CEO Satya Nadella already hinted at the restructuring: Mustafa Suleyman, head of AI, began focusing on developing proprietary models, while the rest of the team concentrated on simplifying Copilot.

This change was also reflected in Windows. In June, Microsoft removed Copilot from apps like Photos, Widgets, Notepad, and Snipping Tool, citing a desire for experiences that are “genuinely useful, rather than omnipresent.” The Copilot+ PC brand, created in 2024 to designate AI-optimized computers, stopped appearing in recent Surface line releases, even on machines that meet the technical requirements.

New enterprise features and market strategy

As the focus on personal use diminishes, the enterprise bet gains strength. In September, Microsoft launched Copilot Cowork, a tool that coordinates multiple AI agents working together within a company, and Microsoft Scout, an agent designed to perform tasks in the background without constant supervision.

These additions follow the same logic as previous announcements, such as the agents that divide tasks among themselves, presented at the 2025 Build event. The approach is similar to that of other companies in the sector: Anthropic integrated its collaboration product into Claude, OpenAI incorporated Operator into ChatGPT, and Google added search and navigation features to Gemini.

The difference is that Microsoft seems to have given up competing for the end consumer in this package and is now betting everything on being the AI tool that companies pay for their entire team to use.

Frequently Asked Questions

• Why did Microsoft change Copilot’s strategy? The company prioritized the enterprise market because Microsoft 365 Copilot already has over 30 million paid subscribers, while the consumer chatbot lags far behind ChatGPT, Gemini, and Claude.
• What features of Copilot were discontinued? Group chats, AI-generated podcasts, Copilot Labs, and the Deep Research tool (replaced by Researcher for professionals) were eliminated. The animated avatar Mico was also removed.
• What hindered the adoption of Copilot by consumers? Brand confusion, with over a dozen simultaneous versions, made it difficult for users to choose.
• How has Copilot’s integration with Windows changed? In June, the assistant was removed from apps like Photos, Widgets, Notepad, and Snipping Tool, with the company seeking experiences that are more useful than omnipresent.
• What enterprise features did Microsoft add to Copilot? In September, Copilot Cowork was launched, which orchestrates multiple AI agents, and Microsoft Scout, designed to perform tasks in the background without constant supervision.