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techcrunch ai · August 13, 2026

Copilot is simplifying: Mico and consumer AI features are cut

microsoft is merging its consumer and business copilot apps and killing features like groupme chat and mico by aug 2026. this consolidation reflects a broader industry trend to simplify ai experiences, but signals that microsoft's previous strategy was too fragmented to compete with chatgpt.

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microsoft is unifying its copilot offerings by combining the consumer-facing and microsoft 365 apps into one interface, effectively retiring the standalone consumer app and its animated mascot mico. several experimental features including group chats, copilot labs, and custom plugins will be discontinued for consumers, though business users will retain tools like 'researcher'. this consolidation reflects an internal realization that the app needed to 'earn the right to exist' and aligns with similar simplification efforts by competitors like google and anthropic. the strategy shift suggests microsoft is prioritizing core utility and business adoption over scattered consumer experiments.

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