Microsoft has just announced its latest wave of Copilot updates and there’s a lot to get excited about. Here’s a quick rundown of what’s new, what’s changing, and what it means for you. 

Meet Copilot Cowork – Your New AI Partner 

The biggest introduction in Wave 3 is Copilot Cowork, a brand-new experience rolling out through the Microsoft 365 Frontier programme right now. 

Think of Cowork as a smart AI partner that works with you throughout your day. It can: 

• Organise your week, review your calendar, spot conflicts, and recommend which meetings to keep, decline, or reschedule 
• Build content for you, create full PowerPoint presentations, draft emails, and more, all from a single chat 
• Work in the background, schedule recurring prompts, like automatically generating meeting follow-up notes every time you finish a call 
• Create email rules, set up smart inbox rules without lifting a finger 

The key thing? Cowork always checks in before making changes. You stay in control. 

---

Word, PowerPoint & Excel Agents Are Now Generally Available 

The Office Agents for Word, PowerPoint, and Excel have officially launched. These aren’t your standard Copilot drafts, they’re a step up. 

When creating a document, the agent asks you clarifying questions first (audience, level of detail, theme preference) and then builds something tailored to your answers, complete with rich formatting, citations, and references pulled from your organisation’s data. 

Worth noting for admins: These agents require Anthropic models to be enabled in your Microsoft 365 admin settings. 

---

“Agent Mode” Gets a Rebrand 

If you’ve been using Agent Mode in Word or Excel, you’ll notice it’s now called “Edit with Copilot” and it’s switched on by default. Same powerful functionality, cleaner name. 

Word & Excel: Generally available for all Copilot users 

PowerPoint: Still rolling out through the Frontier programme 

---

More AI Models to Choose From 

Copilot Chat now lets you pick your preferred AI model. The default is still GPT-4.1 from OpenAI, but you can now switch to Claude Sonnet (from Anthropic) directly within the chat. More models, potentially including Grok, are on the horizon. 

---

Agent 365 & the New E7 Licence 

For organisations thinking about governance and control of AI agents, Agent 365 is launching on 1 May 2025 at $15 per user/month. It gives IT administrators full oversight and control of how agents operate across the business. 

Alongside this, Microsoft is introducing the new E7 licence (~$99/user/month), which bundles together Microsoft 365, the Intune Suite, and Agent 365, designed for enterprise customers who want to go all-in on AI. 

---

The Bottom Line 

Wave 3 marks a significant shift from Copilot as a helpful assistant to Copilot as an active, agentic co-worker. Whether it’s clearing your diary, building your next presentation, or governing AI use across your organisation, the tools are arriving fast. 

---

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.

---