Microsoft is merging its consumer and enterprise Copilot apps into one product, cutting underused features and adding paid AI agents called AutoPilot. The move aims to boost adoption and compete with Anthropic.
Microsoft is combining its consumer and enterprise Copilot AI apps into a single product, according to a company memo cited by The Information on Thursday.
Jacob Andreou, the executive vice president running Copilot, said in the memo that the merged app will include AI coding tools and a new class of paid agents called "AutoPilot." These agents run continuously, automating routine tasks on behalf of customers. The unit has also cut underused features from existing Copilot tools inside Microsoft's enterprise software, Andreou wrote, describing the effort as earning "the right to exist" in users' eyes.
The consolidation comes alongside a separate push into AI consulting. Microsoft announced Thursday it is launching the Microsoft Frontier Company, a $2.5 billion unit that will embed 6,000 engineers and industry specialists with customers to design, deploy and improve AI systems. The move mirrors similar consulting arms from Amazon, OpenAI and Anthropic, all aimed at lowering the barrier for businesses to adopt the newest models.
Microsoft is betting that a cleaner, more capable app will convince existing Copilot users to pay extra for add-ons like AutoPilot agents and Copilot Cowork, a feature that competes directly with Anthropic's Claude Cowork. At the same time, Microsoft has allowed Anthropic to build its own plug-ins for Office software, signaling a conciliatory stance toward a rival that also depends on Microsoft's cloud infrastructure.
A separate PYMNTS Intelligence survey found that 78% of workers whose companies provide an AI platform use the same tool at home. The report noted that familiarity with a workplace AI interface lowers the adoption barrier for personal use, creating a compounding return on enterprise AI investment.
Microsoft shares rose 1.62% to $390.49 on Thursday. The stock carries an Alpha Score of 55 out of 100, a Moderate rating.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.