Microsoft announced on September 25 that it is adding new capabilities to its Copilot platform, including a tool for generating code and an AI agent designed to operate continuously within corporate environments.

The updates integrate Microsoft’s Office suite — Word, Excel, and PowerPoint — directly into Copilot, allowing users to collaborate on documents without leaving the AI interface. The company also revealed that its Windows division is extending Copilot’s functionality beyond conversational chat to increase adoption amid competition from AI chatbots such as ChatGPT and Claude.

A new feature called "Code" will enable users to create applications, dashboards, and other software through natural language prompts. Built on the same infrastructure as GitHub Copilot, the tool will be accessible to early‑access customers at the end of the month, with broader availability for 365 Premium and Pro subscribers later in the year.

Microsoft is also introducing a revamped version of its "Scout" AI agent, now named "Autopilot," in a private preview beginning later this month. The digital coworker will receive a distinct identity within corporate directories and can be assigned specific permissions that users control.

Annie Pearl, corporate vice president of Copilot Product, said the company has focused on addressing security, compliance, and governance concerns that have limited enterprise adoption of AI agents. "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," she said.

The update includes cost‑management tools that give employees visibility into expenses related to their AI usage, responding to growing concerns about unexpected spending as AI adoption accelerates.

Shares of Microsoft rose approximately 3% in early trading following the announcement.