Microsoft Merges Copilot Into One App, Cuts Group Chats, Mico, and Deep Research

Microsoft is merging its consumer and enterprise Copilot tools into a single app, targeting August 18, 2026, while cutting a set of features that failed to gain traction — Group Chats, AI-generated podcasts, Copilot Labs experimental features, Deep Research, and the animated Mico character. A new paid AutoPilot agent tier is being introduced alongside the consolidation.

Cutting Features Is the More Interesting Signal

Killing a named, marketed feature like Mico or Group Chats is a rarer and more informative move than shipping a new one — it means Microsoft has real usage data showing these did not earn their engineering and support cost. For any organisation evaluating Copilot, this round of cuts is worth reading as Microsoft finally being honest about what part of its AI portfolio users actually use.

Consolidation Plus a New Paid Tier

Merging consumer and enterprise apps into one simplifies Microsoft's own maintenance burden and its customers' mental model of 'which Copilot am I using.' Layering in a new paid AutoPilot agent tier at the same time suggests Microsoft is using the consolidation moment to reset pricing and packaging around autonomous-agent capability specifically, not just chat assistance.

What It Means for M365 Customers

If your organisation already pays for Copilot seats, expect a UI and feature-set change around this date — confirm which of the cut features (if any) your teams actually relied on before the cutover. If you have been holding off on Copilot pending a clearer product direction, this consolidation is a reasonable point to re-evaluate, since it represents Microsoft narrowing its bets to what is actually working.