March 20, 2026 Microsoft is merging its consumer and commercial Copilot teams into a single organisation as part of a broader overhaul of its AI strategy. The move aims to simplify a fragmented product experience and strengthen Microsoft’s position as it competes with rivals that currently lead in AI usage and enterprise adoption.
CEO Satya Nadella said the restructuring is designed to create a more unified system across products and use cases.
“This is how we move from a collection of great products to a truly integrated system, one that is simpler and more powerful for customers,” he wrote in an internal memo.
The reorganisation places Jacob Andreou, a former Snap executive, in charge of the combined Copilot unit as executive vice-president. He will oversee product, design, growth and engineering across both consumer and enterprise experiences, reporting directly to Nadella.
The change addresses a long-standing issue inside Microsoft’s AI portfolio. Copilot products across Windows, Microsoft 365 and other platforms have operated with different features and interfaces, leading to confusion among users. Internal data showed weaker adoption compared with competitors, with Copilot at about six million daily users versus significantly higher figures for rival AI platforms.
Alongside the product consolidation, Microsoft is shifting leadership focus at the model layer. Mustafa Suleyman, who previously led Copilot efforts, will step back from day-to-day product work to focus on developing advanced AI models under what he described as a “Superintelligence” initiative.
Suleyman said the effort will centre on building enterprise-grade models and reducing Microsoft’s dependence on external providers. “This requires us to build frontier models, at scale, pushing the boundaries of what’s possible,” he wrote in a message to employees.
The restructuring reflects two parallel priorities: creating a coherent user-facing AI platform and strengthening internal capabilities in model development. Microsoft has historically relied heavily on OpenAI for core AI systems, but recent changes to its partnership allow both companies to pursue advanced AI independently.
The leadership team for Copilot will include Andreou alongside senior executives overseeing Microsoft 365 and platform services, aligning product development, infrastructure and model capabilities more closely.
