WSJ: Microsoft's flagship AI product is losing to competitors and losing users

Microsoft's Copilot chatbot, which the company positions as the centerpiece of its AI strategy, is losing out to competitors, writes Wall Street Journal.

According to Recon Analytics, the share of Copilot subscribers who use the product as their primary option has dropped from 18.8% in July 2025 to 11.5% at the end of January 2026. During the same period, the share of users choosing Google Gemini increased from 12.8% to 15.7%. ChatGPT is the leader with a 55% share.

The respondents who refused to use Copilot said that other services were of higher quality, and some of them pointed to unsatisfactory user experience and severe restrictions on use.

According to Recon, users who have access to Copilot, ChatGPT, and Gemini subscriptions are much more likely to choose ChatGPT and Gemini than Copilot.

Microsoft users and employees complain about the confusing brand structure and compatibility issues between different versions of Copilot – for enterprise customers, developers, and general users.

The situation worsened even more after the release of Anthropic's Claude Cowork, which received rave reviews for its ability to work within and across different Microsoft 365 appswhere Copilot is still having problems. Microsoft has already started working on a similar product of its own to keep up.

Microsoft is forced to spend huge amounts of money to promote Copilot, raising tens of millions of dollars for TV ads and expensive spots during the Super Bowl, the final of the American football championship, where a 30-second video costs more than $8 million.