Microsoft revamps Copilot with new tools for work and AI agents

Microsoft has introduced redesigned Copilot that brings conversational AI, workplace applications, software building and autonomous agents into a single experience.

The new Copilot app adds Home as a central starting point, Code for building custom solutions and Autopilot for persistent agentic work. Home and Code will begin rolling out to Frontier users in the coming weeks, while Autopilot is moving into private preview at the end of September.

Home combines Chat and Cowork, allowing users to switch between quick questions and more complex delegated work, according to Microsoft. The tech giant is also bringing the full capabilities of Word, Excel and PowerPoint into Copilot, allowing users to create and edit real documents, spreadsheets and presentations directly from conversations.

Copilot will increasingly route requests between Chat, Cowork and Code based on the work a user wants to accomplish, Microsoft states. Code extends Copilot beyond traditional documents and files by allowing users to create apps, dashboards, automations and other internal tools through natural-language descriptions.

Autopilot is designed as a cloud-hosted digital teammate with its own identity, memory, computer and workspace inside an organization’s tenant, the company notes. It can monitor Teams, Outlook, chats, channels and documents, then carry out work based on objectives and permissions set by users.

Microsoft is also expanding the business context available to Copilot through Fabric IQ, Dynamics 365 and Power Platform, while a new plugin registry will give organizations a centralized way to approve and manage capabilities.

Alongside the product changes, Microsoft is expanding FinOps for AI with controls for model selection, usage-based billing, credit management and spending policies.