Microsoft Updates Copilot with Avatar, Group Chats and Health Tools

Image Credit: Microsoft

Microsoft has launched a major upgrade to its AI assistant Copilot, introducing a new animated avatar, group-chat functionality and enhanced health-related capabilities.

The announcement comes as Microsoft seeks to broaden its consumer-AI footprint as OpenAI recently launched its Atlas browser to compete with Google and Microsoft directly.

According to multiple sources, the update brings the following:

1. A new avatar named Mico (short for “Microsoft Copilot”) that appears in voice-based interactions, responds with animations and colour changes, and is optional for users.
2. A “Groups” feature allowing up to 32 participants to join a shared Copilot session, enabling collaborative planning, idea-generation, summarisation of threads and task distribution.
3. A “Real Talk” mode in Copilot that shifts from passive agreement to more interactive conversation, including gently challenging assumptions or offering alternative perspectives.
4. Memory and personalisation improvements: Copilot can remember user facts, preferences or ongoing tasks with user-controlled editing/deletion. It also integrates across multiple services (OneDrive, Outlook, Gmail, Google Drive, Google Calendar) to provide unified search and context.
5. Health-specific enhancements: Copilot will source answers from trusted medical information providers such as Harvard Health Publishing, and assist users in locating doctors based on language, specialisation and location.
6. Edge browser features: In Microsoft Edge, Copilot Mode can analyse open tabs, summarise content, compare information and perform actions like booking hotels (with consent) just like OpenAI's ChatGPT-powered Atlas browser.

Microsoft says the roll-out begins in the United States and will expand to the UK, Canada and other regions in the coming weeks.

Mustafa Suleyman, the company’s AI product leader, stated:

“There’s a lot of noise around AI – headlines, hype, fear. We’re betting on optimism in a time of cynicism.”

For end-users, the update marks a shift toward more social, collaborative and interactive AI experiences. With the group-chat feature and avatar, Copilot is no longer a solo assistant but a shared agent in group workflows.

The emphasis on health, memory and service integration suggests Microsoft is positioning Copilot beyond enterprise productivity into daily life and wellbeing.

Enterprise and productivity users may see benefits from the expanded integrations and memory tools, especially in workflows where context preservation or multi-account search matters.

Regulatory and privacy observers may focus on how Microsoft handles the “memory” feature, what data is retained, how user consent is managed, and how the assistant’s “challenging” mode operates responsibly.

If we specifically discuss the Mico, there's no clear statement about what Microsoft is trying to achieve with this new addition, which resembles an alternative to the famous Clippy assistant. However, users will have the option to turn it on or off as they choose.

Here's what Microsoft said in the official announcement:

"This optional visual presence listens, reacts, and even changes colors to reflect your interactions, making voice conversations feel more natural. Mico shows support through animation and expressions, creating a friendly and engaging experience."