Microsoft has introduced a new version of Copilot. The latest version brings AI agents, Office tools and a new Code feature into a single experience. The tech giant is positioning the updated Copilot as a place where users can ask questions, delegate longer tasks, create documents and build small software solutions.The update adds three key capabilities: Home, Code and Autopilot. Home brings Chat and Cowork together, Office in Copilot adds Word, Excel and PowerPoint capabilities, while Code lets users create apps, dashboards and workflows using natural-language instructions. Meanwhile, Autopilot is designed to continue working on assigned tasks without requiring a new prompt each time.
Microsoft Copilot gets a new Home experience
Microsoft has confirmed that Home will become Copilot’s starting point, combining Chat and Cowork in one interface. Chat is designed for questions, lookups, and drafting, while Cowork handles multi-step tasks and produces a completed result.Microsoft said Copilot will eventually be able to determine whether a request should be handled by Chat, Cowork or Code, removing the need for users to select a mode themselves.The company is also bringing Office capabilities directly into Copilot. Users will be able to create or update Word documents, Excel workbooks and PowerPoint presentations from the Copilot interface. Files remain editable and can stay synchronised with the corresponding Microsoft 365 applications.
Code lets users build apps and workflows
The new Code feature aims to let non-developers create small, purpose-built software solutions. Users can describe an app, tracker, dashboard, automation or workflow in natural language, after which Copilot builds it.Microsoft said Code uses the same underlying technology as GitHub Copilot and operates in a sandboxed environment. Solutions can include desktop widgets, interactive dashboards and cloud-hosted internal applications.Code is scheduled to enter Microsoft’s Frontier programme at the end of the month, with broader availability planned in the following weeks. A preview will also be available to Microsoft 365 Premium and Pro subscribers later this year.Microsoft is also introducing Copilot Managed Runtime, a hosting environment that lets applications created through Code, Cowork, and Copilot Studio run within an organisation’s Microsoft 365 environment.
Autopilot can continue working on tasks
Autopilot, previously known as Scout, is Microsoft’s persistent agent designed to continue working after a user assigns it a goal. Users can give Autopilot a name, role and objective, after which it can monitor channels, follow up on conversations and handle recurring work. The agent operates in the cloud and has its own identity, memory, computer and workspace within the organisation’s tenant.Microsoft said Autopilot is designed to work across Teams, Outlook, chats, channels and documents, while remaining subject to permissions, auditing and organisational controls. Autopilot will expand to private preview at the end of September.
More business data and plugins
Microsoft is expanding Copilot’s access to business context through Microsoft IQ. Fabric IQ brings data from Power BI semantic models into Copilot, while integration with Dynamics 365 and Power Platform is planned for public preview.A new plugin registry will also bring Microsoft, partner and custom-built plugins into one catalogue. Administrators can approve and manage plugins centrally.
Microsoft updates Copilot AI spending controls
Microsoft is also adding FinOps capabilities for managing AI spending. The company is separating everyday Copilot use from longer-running agentic workloads.A user subscription license covers Copilot across applications such as Word, Excel, PowerPoint, Outlook and Teams. Usage-based billing applies to features including Cowork, Code and Autopilot.New administrative controls will let organisations manage spending policies, model availability, and credit requests. Users will also be able to see their credit usage, remaining balances and usage history within Copilot.Home and Code will begin rolling out through Microsoft’s Frontier programme, while Autopilot is moving to private preview. Microsoft said it will continue rolling out additional Copilot features over the coming months.