Microsoft Copilot Gets Major AI Upgrade: Now Adds App Building Without Coding, AI Agents and Task Automation

Microsoft is transforming Copilot from a traditional AI chatbot into a comprehensive work platform that can create files, build lightweight apps, automate tasks and manage persistent AI agents. The latest Microsoft 365 Copilot update introduces three major features: Home, Code and Autopilot, alongside new tools for businesses to manage AI usage, spending and security.

The changes aim to make Copilot a central workspace for everyday productivity and more complex, multi-step tasks. Microsoft is also introducing new integrations with Word, Excel, PowerPoint, Teams and Outlook, allowing users to work across its ecosystem with greater AI assistance.

Microsoft Copilot Home Brings Chat and Cowork Together

The redesigned Copilot app introduces Home as its primary starting point, bringing Chat and Cowork together in one interface. Users can access recent activity, suggested actions and ongoing work across meetings, emails, documents, chats and AI agents.

While Chat remains focused on quick questions, research and content generation, Cowork is designed for more complex, delegated tasks. Users can assign it projects such as preparing RFP responses, creating customer briefings, developing product launch kits and assembling financial reports.

Microsoft is also bringing Word, Excel and PowerPoint more directly into Copilot. Users can create documents, spreadsheets and presentations from the Home interface while keeping the conversation alongside their editable files.

Copilot Gets New AI Features for Word, Excel and PowerPoint

The updated Microsoft 365 Copilot experience introduces additional capabilities across its productivity apps.

• PowerPoint: Copilot can help create and refine presentations while maintaining brand templates, layouts and visual consistency.
• Excel: Users can review changes made by Copilot or collaborators, understand why they were made and receive chart recommendations based on their data.
• Word: Microsoft 365 Skills will introduce specialised capabilities, including legal expertise for document-related tasks.
• Excel: Financial skills will provide more role-specific assistance for users working with financial data and models.

These improvements are designed to help users move from generating content to collaborating on complete work products.

Microsoft Copilot Code Lets Users Build Apps Without Coding

One of the biggest additions is Code, a new feature that lets users create lightweight apps, dashboards, trackers and automations using natural language prompts.

Users can describe what they want to build instead of starting with traditional development tools. Examples include interactive dashboards for exploring business data, desktop widgets for quick reference and internal applications that can be shared with colleagues.

Code uses technology associated with GitHub Copilot but targets a broader audience, including employees without professional programming experience.

Microsoft says these solutions will run in a sandboxed environment and can be hosted securely within an organisation's Microsoft 365 tenant. Its new Copilot Managed Runtime will provide the infrastructure for hosting and governing these apps, including solutions built using Cowork, Code and Copilot Studio.

Microsoft Autopilot Introduces Persistent AI Agents

Microsoft is also expanding its agentic AI capabilities with Autopilot, previously known as Scout. The feature allows users to create persistent personal agents with a defined name, role, goal and set of boundaries.

Unlike traditional chatbot interactions, Autopilot can continue working on recurring tasks, monitor conversations and follow up on ongoing projects without requiring users to provide a new prompt every time.

For example, an agent assigned to a supplier review could prepare schedules, organise meetings, follow up with stakeholders and track outstanding updates.

Autopilot runs in the cloud and has its own identity, memory, computer and workspace within an organisation's tenant. It can also operate across Microsoft Teams, Outlook, chats, channels and documents, using workplace context to support ongoing tasks.

Microsoft IQ Connects Copilot to Business Data

Microsoft IQ is the intelligence layer designed to connect organisational knowledge, business operations and trusted data across Microsoft's ecosystem.

Fabric IQ will bring business context from Power BI semantic models into Copilot, while integrations with Dynamics 365 and Power Platform will provide additional information, including sales histories and customer support tickets.

Microsoft is also introducing a central plugin registry where organisations can discover and manage Microsoft, partner and custom plugins. IT administrators will be able to approve and control these integrations centrally.

Microsoft Introduces New Copilot Pricing and AI Spending Controls

Microsoft is separating everyday Copilot productivity features from more advanced agentic workloads through two billing models.

• User Subscription License: Covers standard Copilot features in Chat, Word, Excel, PowerPoint, Outlook and Teams, including model selection. Its Auto feature selects models based on accuracy, speed and cost.
• Usage-Based Billing: Applies to Cowork, Code, Autopilot and advanced models such as Astra and Fable.

New FinOps for AI tools will allow organisations to monitor spending, establish usage policies and manage AI credits. Users will also be able to view their credit balances, consumption history and remaining allowances.

Microsoft Copilot Update: Availability and Rollout

Microsoft is rolling out several of these features through its Frontier programme and private previews. Home and Code are expected to begin rolling out through Frontier, with Code reaching the programme at the end of September. Code is also expected to enter preview for Microsoft 365 Premium and Pro subscribers later this year.

Autopilot is set to expand to private preview at the end of September, while Copilot Managed Runtime is already in preview.

Microsoft is also preparing Today, a proactive command centre for emails, calendars, meetings, Teams conversations and tasks. It is expected to enter private preview in Copilot in October, followed by Outlook and Teams. Meanwhile, @Copilot in Teams is expected to enter private preview by the end of September, bringing shared AI assistance to team conversations and meetings.