Microsoft has introduced a new version of Copilot that brings AI agents, Office tools, and a new Code feature into a single experience. The company is positioning the updated Copilot as a place where users can ask questions, delegate longer tasks, create documents, and build small software solutions.

The update adds three key capabilities: Home, Code and Autopilot. Home brings Chat and Cowork together, while Office in Copilot adds Word, Excel and PowerPoint capabilities. Code allows users to create apps, dashboards and workflows using natural-language instructions.

Microsoft said Home will become Copilot's starting point. Chat is designed for questions, lookups and drafting, while Cowork handles multi-step tasks and produces a completed result. Eventually, Copilot will be able to determine whether Chat, Cowork or Code should handle a request without requiring users to select a mode themselves.

Users will also be able to create or update Word documents, Excel workbooks and PowerPoint presentations directly through Copilot. Files will remain editable and can stay synchronized with the corresponding Microsoft 365 applications.

Microsoft's new Code feature is designed to help non-developers create small, purpose-built software solutions. Users can describe an app, tracker, dashboard, automation, or workflow in natural language, after which Copilot builds it.

Code uses the same underlying technology as GitHub Copilot and operates in a sandboxed environment. Solutions can include desktop widgets, interactive dashboards and cloud-hosted internal applications.

Code is scheduled to enter Microsoft's Frontier program at the end of the month, with broader availability planned in the following weeks. A preview will also be available to Microsoft 365 Premium and Pro subscribers later this year.

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