Microsoft is merging its consumer and enterprise Copilot products into a single application by August 2026, simplifying a lineup that has grown complicated across multiple apps and tiers. As part of the change, Microsoft is retiring Copilot Podcasts and Copilot Labs, and rolling out a paid AutoPilot tier that gives users access to background AI agents for automation and task management. Two new frontier models have arrived inside Copilot: OpenAI’s GPT-5.6 and Anthropic’s Claude Sonnet 5, offering users a choice of underlying model. Other updates are rolling out on a rolling basis: Notebooks inside the Copilot app, which sync with OneNote, are rolling out from early to mid-August. Copilot can now display rich images from files and meetings in its responses and generate an interactive SharePoint dashboard from a list connected to underlying data. Enterprise customers split between Microsoft 365 Copilot and the consumer app have had to manage separate admin consoles, licensing terms and data-handling policies, a friction the merger aims to resolve. The push comes as fewer than 4.5% of Microsoft 365’s roughly 450 million commercial seats have upgraded to a paid Copilot subscription, according to figures cited alongside the announcement. Microsoft has not said whether the unified app will change pricing for existing subscribers or how the transition will affect enterprise customers. Copilot’s growth strategy has leaned on bundling rather than standalone subscriptions, putting it in more direct competition with OpenAI’s ChatGPT