Microsoft Enhances Edge Copilot with Next-Gen AI Tools and New Avatar Mico

Microsoft (MSFT, Financials) unveiled a series of updates to its Edge browser, adding new AI capabilities and an expressive avatar named Mico to its Copilot feature. The enhancements expand the browser's interactive functions and signal Microsoft's push to lead in the growing AI browser segment.

The company said Copilot Mode now enables users to open tabs, access email, and resume sessions through voice commands. The update also groups chat prompts by topic and uses browsing historywhen authorizedto improve context and accuracy. A new Actions feature lets users issue real-time voice instructions, currently in limited U.S. preview.

Vice President Sean Lyndersay said the goal is to make Edge a dynamic, intelligent companion, reinforcing Microsoft's effort to integrate AI more deeply across its software ecosystem.

The update intensifies competition with Alphabet's Google Gemini browser and new AI-based platforms from startups including Perplexity AI and The Browser Company's Arc. Other entrants such as Brave and Opera have also released AI-driven browsers this year.

According to TipRanks data, Microsoft holds a Strong Buy consensus from 32 analysts, with an average price target of $630.28, implying about 21% upside from current levels.

The next catalyst for Microsoft will be user adoption metrics for Edge's AI suite and the global rollout of Copilot voice capabilities.