Microsoft merges Copilot apps, kills Mico mascot and 4 AI features

Microsoft is overhauling its AI assistant Copilot by merging its separate consumer and business applications into a single unified product. The change eliminates the distinction between the consumer-focused Copilot app and the Microsoft 365 Copilot business version, consolidating the experience under one interface. Alongside the merger, Microsoft is sunsetting several features, including Mico, an animated blob-like mascot reminiscent of Clippy. Mico will be relocated to Microsoft Learn Live, where it will serve as a tutor. The company is also removing Group Chat, which supported multi-user collaboration in a single AI conversation; Podcasts, which generated audio shows from web interests and documents; Deep Research, designed to create detailed reports; and Copilot Labs, the experimental feature testing ground.

These feature removals take effect on Aug. 18, and Microsoft warns that all related generated content will be deleted. Users who want to preserve group chats or podcast outputs must export them before that date. Microsoft frames the move as a way to "create a simpler, more cohesive experience for everyone." However, The Information reported late last year that Microsoft had cut AI-related sales targets as Copilot lost ground to rivals like OpenAI, Google, and Anthropic. The consolidation appears to be part of a broader effort to streamline Copilot's appeal and focus resources on higher-impact capabilities. For existing users, the removal of experimental features signals a shift toward a more polished, production-ready product, even if it means losing playful elements like Mico.