rewrite this title Microsoft Overhauls Copilot Leadership to Drive Enterprise Adoption and Accelerate Agentic AI in M365 – UC Today

Three years after launching Copilot commercially, only around 3% of Microsoft 365 business subscribers are paying for it. That number sits at the heart of a leadership restructure Microsoft announced last week, when Satya Nadella and Mustafa Suleyman shared memos with Microsoft employees setting out a significant reorganisation of the company’s Copilot teams.

Jacob Andreou, previously CVP of Product and Growth at Microsoft AI, and before that SVP at Snap, becomes EVP of Copilot, with responsibility for experience, design, product, growth, and engineering across both consumer and commercial. He reports directly to Nadella.

Suleyman, who has led Microsoft AI since joining the company following its acquisition of Inflection in 2024, moves his focus to frontier model development. Ryan Roslansky, Perry Clarke, and Charles Lamanna take on Microsoft 365 apps and the Copilot platform. Together with Andreou and Suleyman, they form a new Copilot Leadership Team.

More on Microsoft Copilot and enterprise AI from UC Today:

Only 3% of M365 Customers Are Paying for Copilot. Microsoft Is Reorganising to Change That

Microsoft has invested heavily in Copilot since its commercial launch in 2023. But enterprise adoption has been slow. According to Sensor Tower data reported by CNBC, Copilot had around six million daily active users in February 2026. ChatGPT had 440 million. Google Gemini had 82 million. Only around 3% of commercial Microsoft 365 subscribers have purchased the Copilot add-on.

Part of the problem has been structural. Copilot’s consumer and commercial products have been developed by separate teams. Suleyman acknowledged this directly in his memo: “We all know this makes sense. Every user, whether at home or at work, will be able to enjoy the full benefit of what we are all building. Today, we’re combining these organisations into a single, unified Copilot org.”

Andreou will lead that unified organisation. Nadella described him as having “accelerated our user-focused AI-first product making and growth framework” at Microsoft AI. His appointment reflects a focus on adoption. The goal is a product people actively choose to use, not one that simply gets provisioned.

Suleyman is moving away from day-to-day Copilot product ownership. In his memo, he set out the reason:

“The next phase of this plan is to restructure our organisation to enable me to focus all my energy on our Superintelligence efforts. These models will enable us to build enterprise tuned lineages that help improve all our products across the company.”

Speaking to CNBC, he was more specific: “My job is to create highly COGS-optimised, highly efficient enterprise-specific model lineages for Microsoft over the next three to five years. The model is the product.”

What the Restructure Means for How Employees Will Use Microsoft 365 Copilot Day to Day

The leadership changes sit alongside a product shift that matters more directly to digital workplace and IT leaders. Nadella’s memo referenced Copilot Tasks, Copilot Cowork, Agent 365, and agentic capabilities now being built into Office apps. These are tools designed to coordinate and execute tasks across M365. That is a different proposition from a chat assistant.

Nadella put it this way:

“As these experiences connect more naturally across agents, apps, and workflows, we have an opportunity to help customers spend more time on higher-value work and reduce manual coordination, while providing people with more agency and empowerment and organisations with the governance and security controls they need.”

The governance point is relevant for IT teams. Charles Lamanna takes on the platform layer in the new structure. He oversees Power Platform and Copilot Studio. These are the tools through which organisations build, customise, and govern how agents work inside their M365 environment.

What the Reorganisation Does and Doesn’t Change for Microsoft 365 Customers Right Now

The restructure is an internal change. It does not affect what is available to Microsoft 365 customers today. The features Nadella referenced, Copilot Tasks, Agent 365, Copilot Cowork, are at various stages of rollout. They are not yet available across all licensing tiers.

But the direction is clear. Microsoft is consolidating accountability for Copilot, investing in the model layer, and building out the agent and governance infrastructure in M365. That is the product organisations will be asked to adopt and expand over the next two years.

For IT and workplace leaders, the practical question is less about what was announced and more about whether their organisation is set up for what is coming. Copilot is moving from a tool that assists individuals to one that is designed to operate across teams and workflows. The governance frameworks, change management, and employee training that support that shift take time to build. The restructure suggests Microsoft is moving quickly. Organisations that have not started that work yet are already behind.