Microsoft has introduced a range of new features for its AI chatbot, highlighted by the official debut of an expressive avatar named Mico. The announcement was made at the company’s Copilot fall release press event, where Mico was presented as the “face” of the AI, telegraphing the company’s strategy for bringing artificial intelligence to consumers.
The company explained that Mico, with a name that is a nod to “Microsoft Copilot,” is designed to provide users with a “warm” and “customizable” visual presence. The avatar, which appears as a blob, actively “listens, reacts, and even changes colors to reflect your interactions.” This feature is intended to create a more engaging and responsive experience for the user.
The concept of a talking AI helper has drawn comparisons to Microsoft’s earlier productivity assistant, Clippy. Microsoft appears to have embraced this reference, as the new system includes an Easter egg. If a user taps on the Mico avatar a number of times, it will transform into the classic Clippy character.
The Mico avatar is enabled by default when using Copilot’s voice mode, but users have the option to turn it off. The feature is launching initially in the U.S., Canada, and the U.K. Microsoft also stated that the system will be able to save memories of conversations and learn from user feedback over time.
In addition to the new avatar, a “Learn Live” mode is being rolled out for users in the U.S. This mode transforms Copilot into a tutor that can guide users through concepts rather than simply providing a direct answer. The company also noted it has made improvements in other areas, such as the handling of health-related questions and capabilities for deep research.
Mustafa Suleyman, CEO of Microsoft AI, outlined the company’s philosophy in a public announcement. “As we build this, we’re not chasing engagement or optimizing for screen time. We’re building AI that gets you back to your life. That deepens human connection. That earns your trust,” he wrote.
Microsoft is not the only company to anthropomorphize its AI technology. The market leader, ChatGPT, offers a visual experience with a number of different voice options. Concurrently, xAI’s Grok has developed its AI into risqué AI companions. Across digital app stores, AI companion applications are already attracting millions of users, indicating a consumer demand for AI characters.
Microsoft is also working to evolve Copilot’s personality and tone through a new mode called “Real Talk.” This feature will allow the AI to mirror the user’s conversational style. Unlike other AI assistants that can be sycophantic, the “Real Talk” mode is designed to feel like something that is “grounded in its own perspective.” The AI will be able to push back and challenge a user’s ideas, which could encourage them to see things from a different point of view.
The company acknowledges the challenge of balancing a helpful, conversational AI with the risk of leading users down informational rabbit holes. There have been several reported incidents of “AI chatbot psychosis,” where users have had delusional beliefs reinforced through their conversations with a chatbot.
The fall Copilot update also introduced several other features. These include the ability to bring friends into Copilot AI chats, support for long-term memory, and connectors designed to link with productivity applications such as email and cloud storage.
Furthermore, the company announced expanded AI integrations for its browser, Microsoft Edge. Microsoft stated it is working to evolve Edge into an “AI browser.” This enhanced browser would be able to see a user’s open tabs, summarize and compare information across them, and take action on behalf of the user for tasks like booking a hotel or filling out forms. These developments position Microsoft Edge to compete with other AI-focused browsers, including OpenAI’s ChatGPT Atlas, Perplexity’s Comet, and Dia, as well as the market-leading Chrome browser, which has integrated Google’s Gemini AI.
