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Microsoft Resets Copilot Strategy: Leadership Shake-Up, Windows Pullback, Office Paywall

The company is centralizing Copilot under Jacob Andreou to refocus on model building with a more selective rollout.

Overview

  • Microsoft paused the automatic installation of the Microsoft 365 Copilot app on Windows devices outside the EEA, leaving existing installs in place and advising admins to await further updates.
  • Starting April 15, 2026, full Copilot Chat inside Word, Excel, PowerPoint, and OneNote will require a paid Microsoft 365 Copilot license for most commercial users.
  • Satya Nadella unified consumer and commercial Copilot under EVP Jacob Andreou, with AI chief Mustafa Suleyman shifting focus to building new models and the company’s superintelligence efforts.
  • Reports indicate Microsoft shelved Copilot Suggestions in Windows 11 notifications and reduced Copilot branding in system areas like Settings and File Explorer to curb perceived AI bloat.
  • Gaming Copilot is slated to reach Xbox Series S|X consoles later in 2026, as questions persist over licensing and attribution for guide content shown in a GDC demo.