Source: The Verge
Microsoft is inverting its product hierarchy. Copilot, long a feature grafted onto Office, is becoming the primary surface. Office functionality is migrating into it. The shift matters because it abandons the document-centric model that anchored Office's market dominance for three decades. In its place: an AI-mediated workspace where the LLM functions as operating system. For enterprise software, the stakes are real. Microsoft must choose between defending the legacy Office franchise or wagering that customers will accept lower-friction AI-native tools, even at the cost of some fidelity and control.