Pavan Davuluri, head of Windows, will re-evaluate Microsoft’s AI strategy for Windows 11. This follows significant user criticism.

Feedback cited poor system performance and reliability. Unpopular AI features, such as Windows Recall, also raised privacy concerns.

Microsoft plans to simplify or remove certain AI features. The goal is to prioritize user experience.

This strategic adjustment occurs alongside strong growth in enterprise AI offerings.

Microsoft now boasts 15 million paid Microsoft 365 Copilot seats. Daily active users increased tenfold year-over-year.

The company's stock recently suffered its largest single-day dollar loss in history following its earnings report. Investors scrutinized the costs and returns of massive AI investments.