Microsoft revamps Copilot with code generation, agentic AI tools

Microsoft unveiled major updates to its Copilot app on Friday, aiming to transform the AI assistant into a comprehensive tool for office workers. The new features include a coding tool and an always-on AI agent, as well as the integration of Office applications like Word, Excel, and PowerPoint directly within Copilot. This allows users to work collaboratively on these apps without leaving the AI platform.

Microsoft is also expanding Copilot beyond its chat-based roots to increase adoption and compete with other AI chatbots like ChatGPT and Claude. The company unveiled Code, a tool that enables users to build apps, dashboards, and software using natural language prompts. Powered by the same technology as Microsoft's GitHub Copilot, Code will be available to early-access customers at the end of the month, with preview access for 365 Premium and Pro subscribers later this year.

Additionally, Microsoft is rolling out Autopilot, a revamped version of its Scout AI agent that was introduced in June. This digital coworker agent will have its own identity in the company directory and specific permissions controlled by users. According to Annie Pearl, corporate vice president of Copilot Product, Microsoft has worked to ensure the agent can be used securely in the enterprise, addressing concerns around security, compliance, and governance.

To help manage costs associated with AI usage, Microsoft unveiled cost-management capabilities that allow employees to gain direct insight into expenses tied to their AI usage. This move comes as enterprises become increasingly concerned about unexpected costs resulting from rapid AI adoption.