Why would Microsoft take the hottest thing in tech and merge it with branding for an AI assistant no one uses?
Sean, that's a fair question and I think Daniel's post above suggests that even w/in MS there is debate on this. The answer and case I would make if I were at MS is a generic marketing answer: IF (no guarantee this can happen) you can build a successful AI experience and incorporate it into a named entity, like Cortana, you will have superior brand loyalty, compared with just using a tech name. Everything that follows assumes they do that successfully.
That's not an insignificant benefit. Brand loyalty at scale can be wroth billions of dollars on a company balance sheet. It's quite literally (from an accounting perspective) an asset.
Further, with strong brand loyalty for a company that does lots of different things, they can leverage that loyalty to support other product and service offerings, which lowers the cost of brining future projects to market.
Two more answers:
1. MS is particularly weak at consumer marketing. A brand mascot would leapfrog the rest of the market for market preference, just as ChatGPT helped them leapfrog their competitors at AI. This would be a huge win for all their direct-to-consumer product and service marketing efforts.
2. MS is also particularly weak among kids. Most of MS fans, like me, are older were using them before Google had a consumer presence. Brand mascots tend to appeal especially to younger users.
For all of these reasons, I conclude that the positives significantly outweigh the negatives.