MOUNTAIN VIEW, CALIF. — Jacob Andreou, head of Microsoft Copilot, has initiated a restructuring of the artificial intelligence tool's development by eliminating redundant versions and merging consumer and enterprise teams. This consolidation began after his promotion by Microsoft Chief Executive Satya Nadella in March 2026.

Andreou, who oversees more than 11,000 people, stated, "The moment we're in is about focus and urgency." He added that the technology sector is experiencing "one of the most intensely competitive environments tech has seen in the last 20 years." Microsoft has also introduced a consumption-based pricing model for Copilot Cowork, which bills users based on factors such as model use and runtime. Copilot Cowork requires a Microsoft 365 Copilot license.

Chad A. Morganlander, a senior portfolio manager at Washington Crossing Advisors, commented that Microsoft is "getting rid of multiple levels of bureaucracy and becoming more focused on the end product and the user." Andreou also noted, "Because the technology is moving so quickly, the reality is a six to twelve month roadmap doesn't really exist in the way it used to."

Andreou, 33, joined Microsoft a year before his promotion in March 2026 and previously led product development at Snap. He demonstrated a practical application of the AI tool by ordering a McDonald's cheeseburger to his apartment using Copilot Tasks, which took approximately two months to develop.

Why It Matters

The restructuring of Microsoft Copilot reflects the competitive landscape within the artificial intelligence industry. By streamlining development and merging teams, the company aims to enhance efficiency and accelerate product innovation. The introduction of a consumption-based pricing model for Copilot Cowork indicates an adjustment to how the AI tool is offered to users, potentially influencing adoption rates among Microsoft 365 Copilot licensees. These organizational and pricing changes occur as Microsoft faces a period where its shares have seen double-digit declines over the past year.