Microsoft Adds Coding and Agent Tools to Copilot

Microsoft unveiled several new capabilities for its Copilot app on September 25, including a coding tool and an always-on AI agent, as the company works to transform its assistant into a comprehensive workspace for office employees.

The new Code tool lets users build apps, dashboards, and other software using natural language prompts. It runs on the same technology as Microsoft's GitHub Copilot and will reach early-access customers by the end of September, with broader previews for premium subscribers later this year. Microsoft is also rolling out Autopilot, a revamp of the Scout agent it introduced in June. The digital coworker will carry its own identity in the company directory and operate under specific permissions that users control.

Annie Pearl, corporate vice president of Copilot Product, said the company focused on making agents usable in enterprise settings. "I think it's been very hard for many organizations to bring agents into the enterprise because of security, compliance and governance concerns," she said. "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 is also embedding Word, Excel, and PowerPoint directly within Copilot, allowing users to work collaboratively without leaving the AI tool. It introduced cost-management features that give employees direct insight into expenses tied to their AI usage, addressing a growing concern as enterprises worry about unpredictable AI bills.

Microsoft shares rose about 3 percent in early trading. The update positions Copilot to compete more directly with ChatGPT and Claude as the race to capture enterprise AI adoption intensifies.