Microsoft Transforms Copilot into AI Operating System with New Features and Pricing Model

Microsoft Corp. (NASDAQ:MSFT) is making significant strides in its Copilot platform, expanding it beyond a chatbot to an AI operating system, according to Oppenheimer analyst Brian Schwartz.

Copilot's revamped product combines Chat and Cowork with Code and Autopilot, allowing users to analyze information, create workplace tools, and delegate longer-running tasks. Microsoft Executive Vice President for Copilot Jared Spataro said the company wants Copilot to become the primary interface for workplace AI, similar to Office's role during the PC era.

The new capabilities are already being used internally by Microsoft employees. Cowork can analyze information across multiple sources, while Code lets non-technical employees build dashboards and other tools. Autopilot can manage recurring work and help users review emails through Teams.

Microsoft is also adding controls for autonomous agents. Each Autopilot receives its own identity, permissions, and audit history, with certain actions requiring explicit human approval.