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Microsoft Cedes the Chatbot Race and Doubles Down on Enterprise

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Microsoft Cedes the Chatbot Race and Doubles Down on Enterprise

Microsoft is folding the consumer version of Copilot into its workplace product and ending its effort to build a personal artificial intelligence companion, Bloomberg reported. The company is leaving the personal chatbot market to OpenAI, Google and Meta and putting its AI effort where it already has the customer, the software and the data.

The two markets ask different things of Microsoft. Winning consumers meant building a new daily habit from scratch against products that already had one. Winning at work means adding AI to software that more than 450 million commercial seats it already has, according to CNBC.

Two years ago, Microsoft set up separate teams for a home assistant and a work assistant and put Mustafa Suleyman in charge of the consumer push, Bloomberg reported. ChatGPT reached a billion users and Google pushed Gemini across Android, and comparatively few people chose Copilot as a personal chatbot.

“We’re not going to build a Copilot that’s like your personal companion,” Charles Lamanna, the executive who oversees Copilot’s core workplace features, told Bloomberg. He said that’s not what people want from Microsoft.

The retreat showed up in August, when Microsoft began merging the two apps and retired consumer features that had not caught on. Group Chats, AI-generated podcasts, Copilot Labs and Deep Research went away by Aug. 18, along with Mico, the animated character that fronted the consumer product, TechCrunch reported . Rivals were consolidating too, with Anthropic merging Cowork into Claude and OpenAI folding its Operator agent into ChatGPT.


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