U.S. tech giant Microsoft (MSFT) is not resting on its laurels as the generative AI race continues to heat up. On Thursday, the company pulled back the curtain on “Mico”, a cartoon-like, expressive blob whose name is a nod to Microsoft’s AI chatbot Copilot.
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The avatar is integrated into Copilot to make AI feel “more personal, useful, and human-centered,” noted Mustafa Suleyman, chief executive of Microsoft’s AI division. The new Copilot face is reminiscent of Clippy, the Microsoft Office assistant introduced in the 1990s.
Microsoft Turns Copilot into a Collaborative Machine
The latest update to Copilot includes several features that turn it into a collaborative machine. According to Microsoft, users can now work in groups through link sharing to brainstorm and study while also remixing AI-generated ideas.
The chatbot can also remember personal interactions and provide access to several popular productivity apps, such as Gmail, Google Drive, Google Calendar, and OneDrive.
Furthermore, the tech company said it has customized Copilot for health and education topics — which its research shows are the two most common topics on AI chatbots — to provide responses from credible sources, such as Harvard Health, and offer voice-powered tutoring.
Microsoft to Make Windows into an AI PC
In the Edge browser, Copilot can now organize previous prompts into topics for easier access. In addition, Microsoft wants to turn every Windows 11 personal computer into an AI PC, with AI features unlockable by saying “Hey Copilot”.
However, the new features are currently only rolling out in the U.S., with plans to introduce them across the U.K., Canada, and other markets over the next few weeks.
The updates come as Big Tech companies race to integrate AI into all aspects of life, with Alphabet’s (GOOGL) Google introducing its AI chatbot Gemini to TVs about a month ago.
Is Microsoft a Buy, Sell, or Hold?
On Wall Street, Microsoft’s shares currently have a Strong Buy consensus rating, according to TipRanks’ data. This is based on 34 Buys issued by analysts over the past three months. Moreover, at $627.93, the average MSFT price target suggests a 20% upside from the current level.

See more MSFT analyst ratings here.

