just wait it out it will be fixed
Well if it was (only) a server side issue, why can some people fix it by resetting their devices? Do you think the problem is that some handsets fail to connect to the servers for the initial setup and then won't try again unless you reset the phone which may lead to success at some point?
EDIT: It would be awkward though if retrying the initial setup only once led to success for so many people. So it does seem to be a client side problem for some devices with a certain state of the OS (e.g. some preferences that prevent Cortana to connect to the servers correctly).
Got mine working (maybe just chance?)
1. Go into Settings -> Cortana and and disable Cortana (allow restart)
2. After reboot, go into Settings -> Cortana and delete all local Cortana data
3. From the same section, go to Manage Cloud data and delete all the available options (interests, what she know about you, etc).
4. Reboot.
5. Start Cortana from the tile and allow her access to your phone (she didn't do the full setup for me here so all my interests were blank). Once you're at the main screen, add an interest or two BUT DON'T ASK HER ANYTHING HERE. Just back out to the home screen.
6. Launch Cortana with a long press of the Search button and ask her "how do I look" or "tell me a joke" or something. For me everything started working again here.
7. Go back in and fill in all your interests, places, inner circle, etc.
As mentioned above, deleting all your local/cloud Cortana data will result in a blank slate. She may or may not ask all the setup questions so be prepared to rebuild your Cortana identity manually.
US user here. Put 8.1 on my Lumia 1020 on Monday. Cortana pretty much only does Bing searches for me. She'll tell me the weather, and how many grams of protein are in a ham sandwich; but not who her father is, and she certainly wont sing me a song.
This worked for me! Thanks for posting this method!
Not for me... :-(
So, I rolled back to WP 8 and updated to Lumia Cyan/WP 8.1 on my AT&T 1520 yesterday and then did a hard reset. I didn't really test Cortana until this morning. I can't get her to work properly. She still does things like tell me the weather or set an alarm but most things she is just doing Bing searches, even if I ask 'How are you?" or just say "Hi" or "What's your name" or whatever she just does a Bing search instead talk. Any ideas here? Anyone else having issues?
EDIT: And yes, location is turned on and the weather works.
Not for me... :-(