Microsoft Taps Jacob Andreou to Reset Copilot for 450 Million 365 Users
Updated
Updated · Fortune · Jun 27
Microsoft Taps Jacob Andreou to Reset Copilot for 450 Million 365 Users
1 articles · Updated · Fortune · Jun 27
Summary
Jacob Andreou, promoted in March after about one year at Microsoft, is leading a Copilot overhaul that cuts extra versions and merges consumer and enterprise teams.
Only about 4.5% of Microsoft’s 450 million Microsoft 365 customers pay for Copilot features, while the free consumer product still trails OpenAI’s ChatGPT.
Andreou is also changing execution and pricing—shipping Copilot Tasks in roughly two months, adding usage-based billing through Copilot Cowork, and pushing faster development across his 11,000-person organization.
That reset comes with strain: current and former employees described 12-hour days, burnout and worries that speed could outpace internal compliance standards.
Microsoft is betting the shake-up can restore AI momentum as investors question its OpenAI dependence, data-center spending and double-digit share decline over the past year.
As Microsoft builds its own powerful AI, is its multi-billion dollar partnership with OpenAI living on borrowed time?
Will a demanding '10x developer' culture fuel Microsoft's AI comeback, or will it just burn out its top talent?
Can Microsoft's 'super app' convince the 95% of enterprise customers who currently refuse to pay for its AI features?
Microsoft’s Copilot Reorganization 2026: Addressing 3.3% Adoption and Fragmentation with a Unified AI Vision
Overview
In March 2026, Microsoft responded to growing investor concerns and pressure to show real returns on its AI investments by reorganizing its Copilot AI division. This leadership shake-up aimed to create a more unified and seamless AI assistant experience across all Microsoft products. Jacob Andreou was appointed as Executive Vice President of Copilot, with the key task of bringing together Copilot’s consumer and commercial offerings to streamline user interactions and maximize its usefulness. At the same time, Mustafa Suleyman shifted focus to advancing superintelligence and frontier AI models, supporting Microsoft’s broader vision for integrated, next-generation AI.