Microsoft has introduced a redesigned Copilot with new Home, Code and Autopilot features. The update also brings Word, Excel and PowerPoint functions directly into Copilot.
Home and Code will roll out through its Frontier programme in the coming weeks, while Autopilot will expand to private preview by the end of the month.
The changes reflect a broader push to make Copilot a single interface for chat, delegated work, software building and office productivity tasks. Microsoft is also adding spending controls and usage tools for organisations managing AI costs.
New layout
Home becomes the main entry point in Copilot, combining Chat and Cowork in one place. Users will be able to review recent activity, receive suggestions and resume work across meetings, messages, files and other applications.
Within the same area, Office in Copilot adds direct access to Word, Excel and PowerPoint. Documents, spreadsheets and presentations created or updated in Copilot will stay synchronised with the Office apps, allowing teams to continue working on the same files.
The aim is to reduce switching between applications when users need to draft material, build a budget model or create a presentation. Microsoft also highlighted updates inside Office, including PowerPoint template handling, change visibility in Excel and role-based workflows across Microsoft 365.
Code tools
Another part of the update is Code, which Microsoft describes as a way for non-developers and developers to create simple software tools using natural language. These tools can include dashboards, automations, workflows, widgets and internal applications.
Code uses the same underlying technology as GitHub Copilot and runs in a sandboxed environment. It can also be hosted within an organisation's own Microsoft 365 tenant.
Microsoft is also introducing Copilot Managed Runtime in preview, which provides the infrastructure for code to run within a company's Microsoft 365 environment. The service is governed by IT teams and is intended to support applications built through Cowork, Code and Copilot Studio, as well as third-party and professional developers.
Code is scheduled to reach the Frontier programme at the end of the month, with broader availability in the following weeks. It will later enter preview for Microsoft 365 Premium and Pro subscribers.
Autopilot agent
Autopilot, previously known as Scout, is designed as a persistent software agent that can continue working without a prompt. Users can assign it a name, a role and an objective, after which it can monitor discussions, follow up on work and handle recurring processes.
The feature is cloud-hosted and appears inside products such as Teams, Outlook, chats, channels and documents. It operates within a customer's tenant and includes permissions, audit and governance controls.
Microsoft gave supplier review processes as one example, where the agent could manage scheduling, preparation, meetings and follow-up tasks.
Data and plugins
Microsoft also outlined changes to the data sources available to Copilot through what it calls Microsoft IQ, its intelligence layer for AI across the Microsoft software stack. Fabric IQ now brings Power BI semantic models into Copilot and is generally available today for Chat and Cowork.
Next month, Copilot is also set to gain public preview access to data and workflows from Dynamics 365 and Power Platform. This would allow business users to draw on records such as sales history and support tickets while working inside documents.
A new plugin registry is also rolling out. It will combine Microsoft, partner and custom-built plugins in a single catalogue, with central approval and management for IT teams.
Cost controls
Alongside the product changes, Microsoft is adding financial management tools for AI usage. Everyday use of Copilot in chat and Office applications will continue under a user subscription licence, while more advanced agent-based work such as Cowork, Code and Autopilot will use usage-based billing.
The new FinOps for AI tools are intended to help organisations track spending, approve credit requests, control model access and review where AI tasks are delivering the strongest results. End users will also be able to see their own credit consumption and remaining balances inside Copilot.
Microsoft said Copilot will continue to receive further updates, including features in Home and Teams that are now in preview or planned for later release. "With the new Copilot, you now have one place to ask, delegate, build, automate and more," the company said.