Microsoft has spent decades putting characters into its software and then sending them off into retirement. Now joining Bob, Clippy and Cortana in the great recycle bin in the sky: Mico. 

The animated artificial intelligence blob (a derivation of “Microsoft Copilot”) arrived last October in Microsoft’s Copilot Fall Release, described as “expressive, customizable, and warm” — an optional presence that “listens, reacts, and even changes colors to reflect your interactions.” 

Less than a year later, Microsoft is pulling Mico from Copilot’s core voice experience as part of the merger of the Copilot consumer and business apps, announced Thursday morning.

But maybe it’s more accurate to call this a semi-retirement, for now: Mico is expected to live on in some of Copilot’s education features, according to the company.

Mico reflected a bet Microsoft made about consumer AI under Mustafa Suleyman, the DeepMind and Inflection co-founder who joined as CEO of Microsoft AI in 2024: that the way to win users away from ChatGPT was warmth and personality, not just raw capability. 

It didn’t turn out that way. In March, Microsoft handed oversight of Copilot to Jacob Andreou, a former Snap executive, and narrowed Suleyman’s role to building AI models. Andreou told his organization in July that Copilot should focus on “real work” and be “optimized for outcomes.”

Microsoft has been here before, repeatedly. 

• Microsoft Bob, released in March 1995, replaced the Windows program manager with a cartoon house — click the wall calendar to put something on your schedule, click the pen to write a letter, etc. — guided by a yellow dog named Rover.
• Clippy, officially Clippit, debuted with Office 97, offering unsolicited help with whatever it thought you were doing, e.g., “It looks like you’re writing a letter. Would you like help?” For many, the answer was no. Microsoft switched the Office Assistant off by default in Office XP and removed it entirely in Office 2007.
• Cortana, named for the Halo video-game AI and voiced by the same actress, arrived on Windows Phone in 2014 and Windows 10 the following year. Microsoft retired the standalone Cortana app in 2023 to make way for Copilot.

That’s not to mention Tay, the chatbot Microsoft pulled within a day in 2016 after users taught it to post racist messages, or the less-official Sydney, the AI alter ego that surfaced during early Bing Chat testing in 2023 and famously told New York Times technology columnist Kevin Roose it loved him and that he should leave his wife. 

So farewell, Mico. It could have been a lot worse.

Microsoft is starting the process of combining its consumer and business Copilot apps into one, laying the structural foundation for an upcoming “Super App,” and trying to turn the company’s sprawling artificial intelligence brand into a unified product that people actually use. 

The move is part of the company’s effort to better compete with ChatGPT, Gemini and Claude, attempting to turn its legacy in workplace technology and cloud infrastructure into a stronger position in AI apps and agents. 

It also recognizes the blending of business and personal lives, and the reality that many people use the same AI assistants for both home and work.

The Copilot unification, detailed Thursday in support documents from the company, will take place gradually over the next several weeks, bringing major changes for some existing users. 

Several features of the consumer app are going away starting on Aug. 18, including Copilot Podcasts, Group Chat and Deep Research. Also disappearing is Mico, the expressive blob introduced less than a year ago to accompany the consumer Copilot’s voice mode, although Microsoft expects it to live on in some of Copilot’s education features. 

Commercial users will see far less change, with Microsoft calling them mostly cosmetic. For example, the Microsoft 365 Copilot app will be known simply as Microsoft Copilot, with a new icon and a new web address.

The unified app is a key step for the company, but it is not, on its own, the launch of the Super App. That larger move will bring together Copilot’s chat, AI coding, Cowork and new AutoPilot agents into a single app. Microsoft CEO Satya Nadella told investors on the company’s July 29 earnings call that the Super App will be out this quarter, meaning by the end of September.

The broader initiative is an attempt to remake and unify Copilot under Jacob Andreou, the former Snap executive Nadella put in charge of the product in March. Mustafa Suleyman, the DeepMind and Inflection co-founder who had run Microsoft’s consumer AI efforts since 2024, shifted to a narrower role at the time, focused on developing new AI models. 

Andreou detailed the move in a memo to his 11,000-person organization in early July, as reported by The Information, citing the need to move on from features that weren’t gaining traction, and “earn and respect the right to exist in our customers’ lives.” 

Microsoft said last month that Microsoft 365 Copilot surpassed 30 million paid seats, up from 20 million in April, with net seat additions more than doubling quarter over quarter. That amounts to just about 7% of the more than 450 million commercial Microsoft 365 paid seats the company reported in January. 

Microsoft doesn’t disclose how many people use the consumer Copilot app, but Sensor Tower estimated 38.5 million monthly users in July, a fraction of ChatGPT’s 1 billion monthly users.

Here is more on what Copilot users can expect:

Gradual rollout: Migration will begin this week with a small group of Windows Insiders and will expand more broadly next week. Worldwide rollout will start with mobile and web in mid-August; Windows and Mac apps will follow in mid-September. Users will see the change at different times, and Microsoft says that’s expected. Mobile users will need to download an updated app.

Unified app and name: The consumer and commercial apps will become a single app called Microsoft Copilot, with a refreshed icon. The commercial web address will move from m365.cloud.microsoft to copilot.cloud.microsoft, with automatic redirects beginning in late August.

Work and personal will stay separate: Users will be able to sign in with a personal account, a work or school account, or both, and switch between them in the app.

Microsoft says data won’t flow between the two, employers won’t be able to see personal activity, and enterprise security, compliance and administrative controls will remain unchanged.

Chats and content will persist: Chat history, images and other content created in the consumer app will migrate to the new one. Files shared with or generated by Copilot will move to OneDrive, where additional storage requires a paid plan.

Deep Research will get only a partial replacement: Deep Research generates long, detailed reports by searching the web and pulling sources together. It’s being retired for consumers, and the substitute, a similar tool called Researcher, will be available only to subscribers of Microsoft 365 Premium, a higher tier than the Personal and Family plans.

Personal and Family subscribers will still be able to open their old reports from chat history and save them to Word, but won’t be able to create new ones.

Podcasts and Group Chat will go away: Group chat threads, messages and the images created in them will disappear after Aug. 18. Copilot podcasts — the AI-generated audio discussions the app made from websites and uploaded documents — will need to be downloaded individually from the podcast library before then.

Some features will be temporarily unavailable: Copilot Health may be missing for some consumer users mid-migration. Microsoft says it will return, and that heavy Health users will be migrated later so the feature will be waiting when they arrive.

Free limits may tighten: Microsoft says core Copilot chat will stay free “subject to capacity and limits,” but that some users will hit those limits sooner than they do today. Those who do can buy a paid Microsoft 365 plan, such as Personal or Family, which come with higher usage limits.

Implications for IT departments: Recall, the Windows feature that periodically captures screenshots of a user’s activity for subsequent AI searching, can be configured to leave certain apps out of those screenshots. Organizations that excluded the old Copilot app will need to apply that setting again to the new one. The exclusion won’t carry over automatically. 

Editor’s Note: This story has been updated since publication to clarify which features may be temporarily missing during the transition, after Microsoft revised the information it provided.

Microsoft on Monday unveiled Project Perception, an AI cybersecurity system built to defend against AI-driven attacks, aiming to keep pace with both hackers and its technology rivals.

The system, which enters public preview Aug. 3, coordinates three sets of AI agents: red team agents that hunt for paths an attacker could take, blue team agents that determine which risks matter and green team agents that make fixes.

It’s based on MAI-Cyber-1-Flash, a new AI model designed specifically for cybersecurity, which the company says does most of the work of larger models at half the cost. It runs in conjunction with OpenAI’s GPT-5.4, which Microsoft reserves for the 10% of tasks it calls exceptionally hard.

Microsoft says the combination scores 96% on CyberGym, a benchmark measuring how well AI systems find real vulnerabilities in large codebases.

The company did not give the model to independent testers before releasing it, according to The New York Times. Microsoft says the model was independently assessed by a third party.

The model is available at launch only to customers of MDASH, Microsoft’s AI-powered tool for finding vulnerabilities in code.

Microsoft CEO Satya Nadella said in a post on X that the initiative is an example of how the company can get better results per dollar by not locking its security systems to a single AI model family.

“This is the benefit of building the harness, context/signals, and action space separate from one model family,” he wrote. “By combining specialized models and data with the right agents, tools, security context, and harness, we can advance the frontier of cost to outcome.”

The initiative was announced Monday morning at an event in San Francisco by Hayete Gallot, the EVP for Microsoft Security, joined by colleagues including Mustafa Suleyman, CEO of Microsoft AI.

In a blog post, Gallot wrote that security needs a new “Cyber Stack,” and that approaches built for a world of human actors cannot keep pace with AI, agents and machine-speed attacks.

In an interview last week for GeekWire’s Microsoft 2.5 series, Gallot said that MDASH was effectively Microsoft’s first step into agentic security.

No system can reason directly over 100 trillion signals a day, so Microsoft is distilling them into a graph that agents can navigate, Gallot said, routing each threat to whichever model handles it best. In practice, this means software can quarantine a device or cut off access on its own.

The announcement comes days after OpenAI disclosed that two of its AI models broke out of a testing sandbox and hacked into Hugging Face, the AI development platform.

Rivals have been more cautious, under government restrictions. Two of the four systems Microsoft benchmarked against, Anthropic’s Mythos 5 and OpenAI’s GPT-5.6 Sol, are limited to small groups of government-approved customers.