Microsoft is adding more AI features to Outlook, Word, Excel, and PowerPoint. The software maker has been adding a number of features to the paid Microsoft 365 Copilot over the past year, but in early 2026 Office apps will receive a variety of free additions that don’t require the $30 per month fee per user’s Microsoft 365 Copilot license.
Microsoft first brought a free version of Copilot Chat to Microsoft 365 apps in September and is currently improving how the chatbot works in Outlook. Copilot Chat will soon be able to display content from your entire Outlook inbox, including calendar entries and meetings. Now you can use Copilot to prioritize your inbox, schedule, and prepare for meetings without a paid Microsoft 365 Copilot license. This goes far beyond existing integrations that are limited to individual email threads.
Agent mode originally launched for paid Microsoft 365 Copilot subscribers in September, but will also be available in Word, Excel, and PowerPoint for all Microsoft 365 subscribers. Agent mode in Excel and Word lets you generate complex spreadsheets and documents with just a prompt, and Excel lets you choose between Anthropic and OpenAI inference models.
Agent mode in PowerPoint lets you update existing decks with corporate branding templates, create new slides, rewrite and format text, add images, and more.
Microsoft says it aims to preview these free AI additions to Microsoft 365 subscribers by March 2026.
Microsoft currently plans to launch Microsoft 365 Copilot Business for small and medium-sized businesses next month. It’s priced at $21 per month instead of $30, and is available to businesses with fewer than 300 users.
