Microsoft revamps Copilot with code generation

Microsoft unveiled a series of enhancements for its Copilot app on Friday, aiming to turn the AI assistant into a comprehensive tool for office workers. The company is integrating Office applications Word, Excel, and PowerPoint directly into Copilot, enabling users to collaborate on these programs without leaving the AI platform.

Shares of Microsoft, based in Redmond, Washington, increased by about 3 percent in early trading following the announcement. The tech giant is working to expand Copilot beyond its chat-based format to increase adoption, as it faces competition from AI chatbots such as ChatGPT and Claude.

One of the new features is "Code," a coding tool that allows users to create apps, dashboards, and other software using natural language prompts. This tool, powered by the same technology as Microsoft's GitHub Copilot, will be available to early-access customers at the end of the month, with a preview for 365 Premium and Pro subscribers later this year.

Additionally, Microsoft is rolling out "Autopilot," a revamped version of the "Scout" AI agent introduced in June, in a private preview at the end of the month. This digital coworker agent will have its own identity in the company directory and specific permissions that users can control. Annie Pearl, corporate vice president of Copilot Product, stated that Microsoft aimed to make the agent enterprise-ready by addressing security, compliance, and governance concerns.

Furthermore, Microsoft introduced cost-management capabilities, allowing employees to gain direct insight into expenses related to their AI usage. This development follows the growing concern among enterprises about unexpected costs resulting from rapid AI use.