You can't say Microsoft isn't trying everything when it comes to AI, even rolling back some consumer pushes around its PC strategy.

Today during its Copilot event, Microsoft announced a major update to said Copilot, and after going through the material myself, it’s clear the company is aiming for something bigger than a simple AI upgrade.

In a surprise to no one, Copilot is becoming the center of the Microsoft 365 experience. Instead of living inside individual apps (yes, we're all tired of that), it now acts as a unified workspace that connects your documents, conversations, data, and tasks. This shift shows how Microsoft wants AI to feel natural for everyday users, not just enterprise customers (even though the latter will benefit the most).

Microsoft CEO Satya Nadella set the tone for this direction in his keynote. He thanked the Frontier program participants and connected Copilot’s evolution to Microsoft’s long‑standing mission “to empower every person and every organization on the planet to achieve more.” He described this new era of AI as a continuation of that goal, shaped by two design principles. The first is keeping humans “in the flow of work,” and the second is helping organizations build systems that learn continuously. Nadella said the aim is to design AI so that people stay in control of their tools and use them to expand their own ambition and creativity.

He also talked about how Copilot reflects a deeper shift in how Microsoft thinks about intelligence. “AI has to be shaped in such a way that it’s working for your firm to create and retain more knowledge,” he explained. That idea of compounding human expertise is central to Copilot’s design. It treats intelligence as something that grows through use and collaboration. Nadella’s framing gives the new Copilot a clear purpose. It is meant to amplify human judgment through context, automation, and shared knowledge rather than replace it. Hearing him describe it this way makes the rest of the update feel more intentional and more connected to Microsoft’s long‑term strategy.

This brings us to the actual news with three new Copilot experiences called Home, Code, and Autopilot, each focused on a different part of work. Together they create a more complete picture of what Microsoft thinks productivity should look like in the AI era.

"Home", a place where work actually comes together

Home should be obvious. It's the new landing spot for Copilot. When you open it, you'll see your recent activity, suggestions for what to tackle next, and a clear view of the tasks Copilot can help with. It seems more like a dashboard than a chat window. You can do the usual AI stuff like asking Copilot to draft a document, summarize a meeting, or help prepare for a presentation, and everything stays connected across Word, Excel, PowerPoint, and Teams.

Microsoft is also improving how Copilot works inside those apps. PowerPoint keeps slides on brand automatically, Excel explains changes in plain language, and Word can refine a document while you collaborate with teammates. It seems to be more cohesive than before, and it makes Copilot feel like part of the workflow instead of a separate tool.

At least that's the goal here.

Home also includes a new feature called Today, which acts like a personal command center. It highlights missed emails, meetings, and tasks, and it helps you catch up quickly.

In typical Microsoft fashion, not everyone gets this on day one. Today enters private preview in October, and Microsoft plans to expand it across Outlook and Teams later this year.

"Code", a way to build without being a developer

Code is one of the most interesting additions, in my opinion. It uses the same underlying technology as GitHub Copilot, but it’s designed for anyone who wants to automate something or build a simple app without writing code. Basically, I can describe what I want in plain language, and Copilot creates it inside my Microsoft 365 environment.

The result might be a dashboard, a workflow, or a lightweight app that connects to live business data.

I think this is a smart move for Microsoft because it opens up automation to people who have never touched a line of code (including myself). Developers still get deep integration with GitHub Copilot, but everyday users get a way to create tools that fit their needs. Code runs in a secure sandbox, connects to Microsoft IQ for context, and syncs with the rest of the workspace.

Basically, as noted in the event, creating apps via Code feels the same as creating (and sharing) a Word document, which is certainly intriguing.

Code enters the Frontier program later this month, with broader availability "coming soon," likely before year's end.

"Autopilot", a teammate that keeps working

Autopilot, previously known as Scout, I believe, is the most ambitious part of the new Copilot. It acts like a digital teammate that manages ongoing work. I can give it a name, a role, and a goal, and it handles tasks like scheduling meetings, managing reviews, and keeping projects moving. It sounds very Meta Muse-ish, but it's better equipped for Microsoft customers, as it works across Teams, Outlook, and other apps, and it keeps going even when you are offline.

Autopilot has its own identity inside a Microsoft 365 tenant, which means it can participate in conversations, track decisions, and follow up on action items. It understands how an organization operates, and it uses that context to make smart choices.

This kind of automation could change how teams handle routine work, freeing people to focus on strategy and creativity instead of logistics.

A smarter foundation for everything

Diving into all the nitty-gritty enterprise jargon (forgive me), we can say that all of this is powered by Microsoft IQ, a unified intelligence layer that connects data, workflows, and context across the Microsoft ecosystem.

Basically, Copilot now understands not just your documents, but your business environment. With Fabric IQ and Work IQ, it can pull insights from Dynamics 365, Power Platform, and other systems, which helps break down silos and reduce the need to switch between apps.

Microsoft is also introducing a plugin registry that lets IT teams and developers extend Copilot with custom or partner-built integrations. It’s similar to an app ecosystem, but built for AI. This gives organizations more control and flexibility, and it helps Copilot adapt to different industries and workflows.

Since AI costs are becoming a real concern, Microsoft is adding FinOps for AI, a framework for managing and optimizing AI spending. Businesses can choose between fixed-cost subscriptions or usage-based billing. Copilot’s Auto mode selects the best option for each task based on accuracy, speed, and cost. It’s a practical way to keep AI powerful and predictable.

Why This Matters

After reading through everything, it’s clear that Microsoft is treating Copilot as the future of its productivity ecosystem. I think we've always known that was the goal here, but it's taken Microsoft a few iterations and market maturity for AI/LLMs to get to this next level, based on customer feedback.

The company is blending creativity, automation, and collaboration into one experience that feels more personal and more capable than before. For small businesses, this means the same AI that powers enterprise workflows will soon feel approachable and useful in everyday tasks. For Microsoft, it’s a strategic shift that positions Copilot as the centerpiece of its long-term vision, which, let's be honest, is the right move.

What about regular non-business consumers? Well, you'll get access to some or all of this based on your M365 Premium or Pro subscription. Whether you make use of it all depends on your goals.

We’ll see more of this at Microsoft Ignite in November, but even now, the direction is obvious. Copilot is becoming the place where work happens, and Microsoft is building the tools to make that feel natural for everyone.

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The Microsoft Copilot app will soon include a built-in browser for more users. Microsoft started testing the feature back in March, but the broader rollout of the built-in browser will begin in late November.

The idea is that when you click a link within the Copilot app, you'll stay within Copilot rather than jump into your default browser.

Microsoft described the feature through its message center (archived here):

"Microsoft Copilot app now supports in-app browsing on Windows and Mac, allowing users to open websites side-by-side with chat. Available via admin opt-in now, with broader rollout in late November 2026. Users can manage tabs, toggle full-screen, or open links externally. Data is stored locally, similar to Edge."

Copilot's behavior is similar to what you see in Microsoft Teams. It's normal to see apps open in their own browser. X, Reddit, and other popular sites do the same thing.

The question is whether Copilot having a built-in browser will change workflows. Will people start a session by asking Copilot a question and stay in the app, or will they stick with their preferred browser and use Copilot inside it?

It may seem like a distinction without a difference, but getting someone to change their default habit is a massive challenge. Google has had some luck in this area on mobile devices. I often find myself using Gemini and then browsing the web, which effectively gets me to use a different browser. I'm sure Microsoft would love to get people to do the same thing with Copilot on their PCs.

Microsoft may have better luck retaining users who already use Copilot than trying to convert Edge users by forcing Copilot into the Sidebar. The actual experiences are quite similar, but the entry points are different.

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Microsoft Copilot will soon support Grok models from xAI. Word, Excel, and PowerPoint users in the Microsoft Frontier Program can test Grok models now, with general support expected to roll out in the future.

Grok models are being added to Microsoft's Online Services Subprocessor list. By offering different models as subprocessors, Microsoft can give customers access to those models without people having to switch away from the overall Copilot experience.

For example, Researcher Agent in Microsoft Copilot works with Claude AI models from Anthropic. Other Copilot experiences may use multiple AI models to complete tasks.

"Our multi-model strategy gives customers access to leading AI models while maintaining the trusted Copilot experience," said Microsoft in a Tech Community post.

For different models to appear as options, admins need to enable them through the settings of their respective organization.

During the testing period, Grok models will not be available in the European Union, European Free Trade Association, or the United Kingdom.

What is a subprocessor?

Subprocessors are third-party providers that help Microsoft deliver online services. Microsoft has an expansive list of subprocessors used for everything from powering data centers to completing tasks in Copilot.

Using Grok as a subprocessor helps Copilot tackle different tasks and provides redundancy that protects against outages or issues with other subprocessors. But users should not expect the witty or irreverent tone and style that Grok has become known for on X.

Subprocessors sit under Microsoft's system prompts and enterprise guardrails, so the generated responses will still be professional. Essentially, you get the benefit of Grok's multi-step logic and mathematical prowess but within Copilot.

Once an admin enables the integration, you can set Copilot in apps like Word, Excel, and PowerPoint to automatically pick the best model for a task, or manually pick between GPT, Claude, or Grok directly from a drop-down menu in the interface.

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Google Gemini now competes with Microsoft Copilot for space on your keyboard. Google just released Gemini for Windows, and that app uses the same keyboard shortcut as Copilot (Alt + Space).

That shortcut is popular and those hoping to use Gemini may have to remap some shortcuts to perform other tasks. In addition to summoning Copilot, Alt + Space opens PowerToys Run.

The Gemini app is available for both Windows 11 and Windows 10. You can download it through Google's website.

The general functionality of the Gemini app is similar to Gemini's web experience. One key difference is that you can summon the AI tool with a keyboard shortcut, which allows you to launch it quickly.

The macOS version of Gemini supports sharing your screen and other native capabilities, such as dictating by pressing both Command keys. Google explains that more native features will ship to the Windows version of Gemini in the future.

I prefer Gemini over Copilot for many tasks. I recently swapped to Google's AI tool for a month to see how it performed as an editor. While Copilot felt more personal, Gemini was often more accurate when it came to correcting tasks.

"In my specific use case, Gemini felt like an upgraded Microsoft Editor while Copilot felt like a modern Clippy," I said a couple months ago.

Both Copilot and Gemini have their strengths and weaknesses, but Google's option is better for my workflow. Our readers disagreed.

21% of those who voted in our poll about proofreading with AI use Microsoft Editor. Another 29% of participants use Microsoft Copilot. Only 11% of voters rely on Gemini to proofread documents.

Of course, Gemini and Copilot can do a lot more than proofread documents. Google recommends the new Gemini app for fact-checking documents, coming up with titles for a presentation, and creating images and videos.

For more complex tasks, you can hand things off to Gemini Spark within the app.

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