Microsoft Overhauls Copilot with AI Agents, Office Tools, and Code Feature

Microsoft has revamped its Copilot AI tool to integrate more capabilities and streamline user experience. The updated Copilot now includes AI agents, Office tools, and a new Code feature that lets non-developers create small software solutions using natural-language instructions.

The new features include Home, which combines Chat and Cowork in one interface for asking questions and completing tasks; Code, which allows users to build apps and workflows without coding; and Autopilot, a persistent agent that can continue working on assigned tasks without requiring new prompts.

Code uses the same underlying technology as GitHub Copilot and operates in a sandboxed environment. Solutions created through Code can include desktop widgets, interactive dashboards, and cloud-hosted internal applications.

Microsoft is also introducing Copilot Managed Runtime, which lets applications created through Code, Cowork, and Copilot Studio run within an organisation's Microsoft 365 environment.