Microsoft is updating its Copilot platform with new agentic capabilities and support for frontier models, including Astra and Fable. The company introduced Code, a tool for building small applications that operates in a sandboxed environment. Enterprises can host this code within their own Microsoft 365 infrastructure using the new Copilot Managed Runtime, while Microsoft handles management.
The company also rebranded its digital teammate Scout as Autopilot. This semi-autonomous agent is designed for recurring tasks, such as managing schedules, organizing meetings, and communicating with team members. All Copilot tools now utilize Microsoft IQ, a framework that establishes business context and operational rules for AI agents within an organization.
Microsoft plans to release a plugin registry by the end of the month, allowing IT administrators to manage and add new functionalities. The platform now features an Auto mode that selects AI models based on a balance of accuracy, speed, and cost. Organizations can also utilize usage-based billing to select specific models for their operations.
The subscription license provides access to Copilot chat across Office applications. According to Jared Spataro, chief marketing officer for AI at Work, features like Cowork, Code, and Autopilot, along with frontier models, are integrated into the usage-based billing system. These updates aim to strengthen Microsoft's position in the enterprise AI tools market.
