Microsoft retools Copilot with coding, AI agent capabilities

Microsoft announced on Friday a major update to its AI-powered productivity suite Copilot, integrating the popular Word, Excel, and PowerPoint applications deeper into the system. This move aims to make Copilot the primary entry point for users interacting with Microsoft's suite of productivity tools. In the coming weeks, individual Microsoft 365 subscribers and businesses participating in its testing program will be able to create, edit, and share files within Copilot, eliminating the need to switch between different applications.

Jacob Andreou, executive vice president overseeing Copilot, explained that the new integration represents a significant step forward for the company. He noted that many companies have incorporated simplified document viewers into their products recently, but the current update goes beyond that, offering full-fledged Office capabilities.

Andreou highlighted that OpenAI, behind ChatGPT, and Anthropic, creator of Claude, have also launched their own document creation tools recently, both of which serve as key suppliers to Microsoft since Copilot primarily runs on their models.

While Microsoft has recently unveiled its own in-house models, these are currently only powering a few products, such as the coding tool GitHub Copilot. However, the company has recently announced a low-cost model for routine tasks, though it has not yet been launched. One of the key features of Copilot now includes Autopilot, a software capable of handling automated tasks continuously, previously known as Scout.

Andreou described it as Microsoft's first always-on AI assistant, able to operate online even when a computer is turned off. However, Autopilot remains limited to a handful of clients.

CEO Satya Nadella compared the arrival of these AI tools in the workplace to the advent of the personal computer. He emphasized that the challenge lies in allowing companies to seamlessly move from one AI model to another without losing their data or expertise. Nadella stressed that true independence in the future will involve having a private evaluation system and the ability to switch between models as needed.

Regarding billing, a basic Copilot subscription costs $30 per user per month, providing access to fundamental AI features like data analysis and document drafting. For more advanced tasks, which require more computing power, pricing will be based on usage. Andreou advised companies to identify their top performers and grant them access to more powerful agentic tools.