Microsoft AI Shake-up: Copilot Gets New Boss

Microsoft has implemented a significant reshuffling of its artificial intelligence leadership, aiming to bolster its market position. Jacob Andreou, previously a Snap executive, has been elevated to lead the entirety of the Copilot division, a role that includes its consumer chatbot and Microsoft 365 office services. He will report directly to CEO Satya Nadella.

This organizational change involves a shift in responsibilities for Mustafa Suleyman, who joined Microsoft in early 2026 to lead consumer AI. His role has been narrowed to overseeing the development of the company's frontier large language models. This strategic adjustment is intended to allow Suleyman to concentrate on building world-class models over the next five years.

The company is intensifying its focus on developing proprietary AI models to reduce reliance on partners like OpenAI, with whom Microsoft maintains a significant but increasingly competitive relationship. Microsoft's current in-house models lag behind those of competitors, but the company anticipates new releases later in 2026 will bridge this gap.

This restructuring also addresses customer and employee feedback regarding a fragmented Copilot brand. Nadella stated the new structure will create "one unified effort," moving from a collection of products to an integrated system. Despite selling 15 million 365 Copilot subscriptions, Microsoft aims to broaden adoption across its vast commercial customer base.