Microsoft's AI assistant for productivity is getting a significant upgrade with new capabilities designed to transform how businesses interact with their digital workspaces. The tech giant has completely redesigned its Microsoft 365 Copilot application, introducing powerful features that bring enterprise AI capabilities closer to the consumer experience while maintaining professional boundaries.
A Ground-Up Redesign
Microsoft has rebuilt the 365 Copilot app from scratch, according to Jon Friedman, corporate vice president of design and research at Microsoft. The redesigned app now defaults to a chat interface that resembles the consumer version of Copilot but maintains its enterprise focus. This interface now includes memory and personalization capabilities, allowing the AI to develop an understanding of users' work patterns and preferences over time. The left pane has been optimized for content rather than applications, making it easier for users to access what they need without navigating through multiple menus.
Key New Features in Microsoft 365 Copilot:
- AI-powered enterprise search with third-party app integration
- Copilot Create for image generation using OpenAI's GPT-4o
- Notebooks for project-based organization
- Agent Store for accessing specialized AI assistants
- Memory and personalization capabilities
- Pages feature for collaborative work with AI agents
- New Windows 11 shortcuts (Copilot key and Win + C)
Enhanced Enterprise Search
One of the standout additions is the new AI-powered enterprise search functionality. This feature extends beyond Microsoft's ecosystem to access third-party applications including ServiceNow, Google Drive, Slack, Confluence, and Jira. This cross-platform search capability delivers more relevant results for businesses that utilize a mix of productivity tools, addressing a common pain point in enterprise environments where information is often siloed across different platforms.
Creative Tools with GPT-4o
The new Copilot Create section represents an evolution of Microsoft's Designer product, now powered by OpenAI's GPT-4o model. This feature enables users to generate images, videos, surveys, and other content directly within the app for use in Office documents. Business users can now create AI-generated visuals that adhere to company-approved brand guidelines, modify existing brand images, and develop assets for presentations and social media without leaving the Microsoft 365 environment.
Notebooks for Project Organization
Microsoft has introduced Notebooks to 365 Copilot, offering project-based organization tools that allow users to collect and manage information around specific datasets in the Office Graph. These function as collections of pages, links, and files that can be shared with Copilot to focus the AI's responses on specific projects. This feature enables more contextual interactions with the AI assistant, making it more effective for dedicated project work and specialized tasks.
Agent Store and Specialized AI Assistants
At the core of this update is a new Agent Store, providing easy access to both Microsoft-developed and third-party AI agents. The newly released Researcher and Analyst agents, which can conduct advanced research and data analysis, are now available through this store as part of Microsoft's Frontier program. Additional specialized agents from partners like Jira, Miro, and Monday.com are also accessible through this hub, expanding the ecosystem of AI tools available to business users.
The Rise of the Agent Boss
Microsoft's work trend index, based on business surveys, Microsoft 365 telemetry, and LinkedIn hiring trends, suggests the emergence of what the company calls Frontier Firms built around AI tools. Within these organizations, Microsoft predicts the rise of the agent boss – employees who build, delegate to, and manage AI agents to amplify their impact. Jared Spataro, chief marketing officer of AI at work at Microsoft, suggests that from the boardroom to the frontline, every worker will need to think like the CEO of an agent-powered startup.
Administrative Controls
For IT administrators, Microsoft has launched new features in the Copilot Control System to help manage and govern AI agents across the organization. Data Security Posture Management for AI with Purview provides a single dashboard to view and govern AI apps and agents, while Agent Management in the Microsoft 365 admin center allows blocking specific agents for certain users. The new Copilot Studio Agents Report gives IT departments insights into how employees use AI agents and the productivity gains resulting from their implementation.
New IT Administration Tools:
- Copilot Control System for managing AI agents
- Data Security Posture Management for AI with Purview
- Agent Management in Microsoft 365 admin center
- Copilot Studio Agents Report for tracking usage and ROI
Bridging Professional and Personal AI
While the consumer and commercial Copilot apps remain distinct, Friedman indicates that Microsoft is working toward a unified experience that spans from warm and personal to performant and professional. This approach acknowledges the different contexts in which AI assistants operate while maintaining a consistent brand experience. The professional version maintains necessary boundaries while still delivering the personalized assistance that makes AI tools valuable in workplace settings.