Microsoft 365 Copilot expands with 7 new AI-powered features

Microsoft’s Copilot Wave 2 release significantly expands the AI assistant’s capabilities within Microsoft 365, introducing specialized AI agents and new productivity features for business users. This update represents Microsoft’s continued investment in making artificial intelligence central to workplace productivity, with particular focus on research, analysis, and collaboration tools that leverage the latest generative AI models from OpenAI. The enhancements signal a shift toward AI that can handle increasingly specialized business tasks while maintaining administrative control.

The big picture: Microsoft’s latest Copilot update introduces an Agent Store and specialized AI agents designed to handle complex business tasks across the Microsoft 365 ecosystem.

• The new Agent Store serves as a central hub for AI agents, including both Microsoft-created agents and those from partners like Jira, Miro, and Monday.com.
• Research-focused agents that leverage OpenAI models are now available through Microsoft’s Frontier program.

Key details: The Wave 2 release includes several practical enhancements to boost everyday productivity within the Microsoft 365 suite.

• The new Create feature taps into OpenAI’s GPT-4o model to generate AI images that automatically follow company branding guidelines.
• Copilot Notebooks enables users to combine various work elements (spreadsheets, documents, presentations) in one searchable location accessible through conversational chat.
• Users can now access Copilot Chat more quickly through a dedicated key and Win + C keyboard shortcut in Windows 11.

Why this matters: Beyond adding features, Microsoft is creating an AI-powered work environment that bridges traditional productivity tools with emerging AI capabilities.

• The Skill Discovery agent represents a significant step toward skills-based team creation, helping leaders identify and form teams based on specific capabilities.
• The system’s memory and search features, which integrate with third-party applications like Google Drive and Slack, demonstrate Microsoft’s commitment to cross-platform functionality.

For IT administrators: Microsoft has enhanced administrative controls to help organizations manage AI governance and security.

• The new Copilot Control System includes Data Security Posture Management with a unified dashboard.
• Administrator tools now include agent management features to block specific agents for certain users.
• A new Copilot Studio Agents Report offers insights on AI agent usage and productivity metrics.