Microsoft Copilot has already landed a wave of updates that quietly change how work gets done inside Microsoft 365. 

At first glance, some of these updates might feel “technical” or incremental. But taken together, they point to something bigger. Copilot is moving from being a helpful assistant to becoming an embedded layer of intelligence across your business. 

Below is a clear breakdown of the seven key updates, what’s changed, and what they mean for both businesses and employees. 

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1. GPT-5.2 Model Powers Copilot Chat 

Copilot Chat, the latest addition, powered by GPT-5.2, the latest evolution of the model running behind the scenes. 

What’s new? 

Users now see three response modes: 

• Quick response – fast, surface-level answers using limited context 

• Think deeper – slower but far more detailed answers pulling from meetings, documents, Teams activity, and more 

• Auto (default) – Copilot decides which approach fits the question 

Why this matters for businesses 

• Better answers with less prompting 

• More reliable summaries, updates, and insights 

• Reduced need to “rephrase” questions to get useful results 

This means Copilot feels more natural.  

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2. Copilot Can Now Use Chat History (Early Preview) 

Until now, Copilot lacked something users of ChatGPT were used to: memory. 

That’s changing. 

Copilot can now use past conversations to improve responses, powered by Microsoft’s new concept of Work IQ. 

Business impact 

• Copilot begins to understand how individuals work 

• Responses improve over time without extra configuration 

• Less repetitive explaining from employees 

This is currently in early preview, but once fully rolled out, it will fundamentally improve consistency and relevance across Copilot interactions.

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3. Claude Becomes a First-Class Copilot Agent 

Microsoft has introduced Claude as a usable agent inside Copilot, powered by Anthropic. 

What’s important to know 

• Available via the Copilot Agent Store 

• Uses the Claude Sonnet 4.5 model 

• Particularly strong at writing, reasoning, and structured thinking 

• Uses web-based data, not your internal Microsoft 365 data 

⚠️ For UK and EU businesses, Claude is disabled by default due to data processing considerations and must be deliberately enabled. 

Why this is a strategic shift 

Microsoft is no longer backing a single AI model. Instead, it’s giving businesses choice. 

That opens the door to: 

• Different AI tools for different tasks 

• Reduced dependence on one model 

• Better outputs for content-heavy or analytical work 

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4. The New People Agent Finds the Right Person Instantly 

This is one of the most impactful updates. 

The People Agent allows you to ask Copilot: 

• Who should I speak to about a project? 

• Who has experience in a specific area? 

• Who reports to whom? 

• Help me prepare for a meeting with this person 

Copilot analyses emails, meetings, Teams activity, SharePoint, and OneDrive to build the answer. 

Why businesses should care 

• Less time wasted asking around 

• Faster decision-making 

• Better collaboration across departments 

For employees, this removes the guesswork. For businesses, it reduces friction that quietly slows work every day. 

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5. You Can Now Search Your Copilot Chat History 

Copilot Search now includes Copilot Chats as a searchable source. 

What this fixes 

• No more scrolling endlessly through old conversations 

• Quickly pick up where you left off 

• Treat Copilot interactions as reusable knowledge 

This turns Copilot into a living work log, not just a one-off assistant. 

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6. Copilot Agents Can Now Create Documents and Charts 

Custom agents built in Copilot Studio previously had a major limitation: 

they couldn’t create documents, charts, or files. 

That’s changed. 

By enabling a new toggle in the agent builder, agents can now: 

• Generate Word documents 

• Create charts 

• Produce downloadable outputs 

Real business value 

• HR agents can generate policy summaries 

• Finance agents can produce reports 

• IT agents can create documentation 

This moves agents from “answering questions” to delivering work-ready outputs. 

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7. Copilot Can Explain Slides in PowerPoint 

Inside Microsoft PowerPoint, users can now right-click a slide and select Explain. 

Copilot will: 

• Describe what the slide means 

• Explain why it exists 

• Show how it fits into the wider deck 

Why this matters 

• Faster onboarding to unfamiliar presentations 

• Better understanding before meetings 

• Less reliance on external explanations 

This is especially useful in large businesses where slide decks change hands frequently. 

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What This Means Overall 

Individually, these updates are useful. Collectively, they signal a clear direction: 

• Copilot is becoming context-aware 

• AI is moving closer to real work outputs 

• Businesses are being given model choice 

• Knowledge and people discovery are being automated 

The biggest winners will be businesses that: 

• Set clear AI usage guidance 

• Enable the right features intentionally 

• Train teams on when and how to use Copilot 

Without that structure, even the best tools can become noisy or underused. 

If 2025 was about experimenting with AI, 2026 looks like the year businesses start embedding it properly. 

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Want to Know How We Can Support Your Business?

Here at iThink 365 our expert team helps organisations unlock the full potential of Microsoft 365, leveraging AI, Copilot extensibility, custom agents, and Agentic AI to help organisations reimagine productivity. From empowering teams to work smarter to enabling businesses to scale faster, our intelligent solutions automate workflows, eliminate repetitive tasks, and drive real business impact.
Ready to lead the change? Let’s talk.

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