Microsoft expands Copilot with coding and AI agent features

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Microsoft adds coding, agentic AI and cost controls to Copilot Credit: Reuters
Microsoft adds coding, agentic AI and cost controls to Copilot Credit: Reuters

Microsoft is expanding its Copilot app with new tools aimed at making the AI assistant a broader workplace platform. The company on Friday introduced a coding tool, an always-on AI agent and direct access to Office applications within Copilot.

Microsoft is also integrating Word, Excel and PowerPoint into Copilot, allowing users to work collaboratively on these applications without leaving the AI tool. Shares of the Redmond, Washington-based company rose about 3% in early trading.

The software giant is seeking to move Copilot beyond its chat-based foundation and increase adoption as it competes with AI assistants such as ChatGPT and Claude.

Microsoft introduced “Code”, a tool that allows users to create apps, dashboards and other software through natural language prompts. It uses the same technology as Microsoft’s GitHub Copilot. The tool will be available to early-access customers at the end of the month, while 365 Premium and Pro subscribers will be able to preview it later this year.

The company is also introducing “Autopilot”, an updated version of the “Scout” AI agent it unveiled in June. It will enter private preview at the end of the month.

The digital coworker agent will have its own identity in a company directory and operate with specific permissions that users can control.

“I think it’s been very hard for many organizations ⁠to bring agents into the enterprise because of security, compliance and governance concerns,” Annie Pearl, corporate vice president of Copilot Product, said in an interview.

“So we’ve worked… to make sure ⁠that we were building this in a way that would really be able to be used in the enterprise.”

Microsoft has also introduced cost-management features that will give employees direct visibility into expenses linked to their AI usage. The move comes as enterprises face growing concerns that increased AI adoption could lead to unexpected costs.

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