Microsoft Merges Copilot Apps and Launches AI Consulting Business

Microsoft announced that its consumer‑focused and enterprise Copilot applications will be combined into a single product in August. The unified app will introduce paid "AutoPilot" agents that operate continuously, with the first agent, Microsoft Scout, already in private preview for select organizations. Underused features such as Copilot Podcast and Copilot Labs will be discontinued.

The move follows an internal memo from Jacob Andreou, executive vice‑president of Copilot, stating that "Copilot should be reorganized around actual work and results" and that the product must "earn the right to exist" with paying customers. To support the overhaul, Microsoft is creating a $2.5 billion AI consultancy unit dubbed the Microsoft Frontier Company, staffed with about 6,000 industry and engineering experts to help customers design, deploy, and improve AI systems. The initiative aims to boost adoption after only 3‑4 % of Microsoft 365 users have paid for Copilot and to address recent pressure on the company's stock price.