Microsoft Adds Coding Tool and Always-On Agent to Copilot

Microsoft has introduced a set of new capabilities for its Copilot app, including a coding tool and an always-on AI agent, as it works to broaden the assistant beyond its chat-based origins.

The company is also placing its Office applications — Word, Excel and PowerPoint — directly inside Copilot, so users can collaborate on those programs without leaving the AI tool. The move is part of a wider effort to position Copilot as a single destination for office work, at a time when Microsoft is competing with AI chatbots such as ChatGPT and Claude.

The coding feature, called "Code", is designed to let users build apps, dashboards and other software through natural-language prompts. It runs on the same technology that powers Microsoft's GitHub Copilot. Early-access customers will receive it at the end of the month, while 365 Premium and Pro subscribers can preview it later this year.

Separately, Microsoft is rolling out "Autopilot", a reworked version of the "Scout" AI agent it introduced in June, in a private preview at the end of the month. The digital coworker agent will have its own identity in a company's directory and carry specific permissions that users can control.

Annie Pearl, corporate vice president of Copilot Product, said organisations have found it difficult to bring agents into the enterprise because of security, compliance and governance concerns. She said the company had worked to build the feature in a way that would be usable in enterprise settings.

Microsoft also announced cost-management capabilities that give employees direct insight into the costs associated with their AI usage. The addition comes as enterprises grow increasingly concerned about rapid AI adoption leading to unexpected expenses.