Prime Highlights:
- Microsoft introduces five new AI featuresfor Microsoft 365, including Excel Agent Mode, collaborative AI agents in Teams, and a model choice feature in Researcher, designed to make work easier, faster, and more collaborative.
- Microsoft 365 Premiumreplaces Copilot Pro, offering a combination of Microsoft 365 Family, Copilot Pro features, and 1TB of cloud storage, along with early access to experimental AI tools.
Key Facts:
- Microsoft 365 Premium is priced at $19.99 per month, combining features like Office Agent, Agent Mode, and increased usage limits across Word, Excel, PowerPoint, OneNote, and Outlook.
- 82% of employees use unsanctioned AI tools at work, leading Microsoft to embed Copilot in its suite with enterprise-level security and compliance to provide a safer, more productive AI experience.
Background
Microsoft CEO Satya Nadella on 5 October 2025 announced five new AI features for Microsoft 365. The updates are part of Microsoft’s “model-forward” approach, designed to make work easier, faster, and more collaborative.
Nadella highlighted several new features, including Excel Agent Mode, which lets users prompt Copilot to build directly in workbooks; collaborative AI agents in Teams; Knowledge Agent for enterprise data; GitHub integration in Teams; and a model choice feature in Researcher, allowing users to switch between OpenAI and Anthropic models.
The announcement follows Microsoft’s launch of Microsoft 365 Premium on 1 October. Priced at $19.99 per month, the subscription combines Microsoft 365 Family and Copilot Pro features, offering higher usage limits, early access to experimental AI tools like Office Agent and Agent Mode, and 1TB of secure cloud storage per user. Premium also includes advanced Copilot capabilities across Word, Excel, PowerPoint, OneNote, and Outlook
Microsoft will no longer support Copilot Pro and is encouraging users to upgrade to Microsoft 365 Premium, which offers superior value. The company has also added Copilot Chat directly into Microsoft 365 apps to offer a single chat experience, and it has increased usage limits for Microsoft 365 Personal and Family plans.
The updates address the growing use of external AI tools at work. Microsoft’s latest Work Trend Index found 82% of employees experiment with unsanctioned AI. By embedding Copilot in Microsoft 365 with enterprise-level security, compliance, and content safeguards, the company aims to provide a safe, productive AI experience for businesses and individuals.
