Copilot News Show #1 - What's New in Microsoft AI

Welcome to the very first edition of Copilot Weekly, your quick rundown of all the important Microsoft AI and Power Platform updates from the past week. Each week we’ll spend about 5–10 minutes cutting through the noise and highlighting the things you actually care about.

Let’s jump right in.

Also available on YouTube or via Newsletter.

1. SharePoint Knowledge Agents + Metadata Tags

Microsoft has announced SharePoint Knowledge Agents. These agents can help with metadata tagging, understanding your SharePoint sites, and providing richer context around your projects.

The bigger deal here is a smaller note tucked into the announcement: starting in October, metadata tags on documents will finally be usable in AI responses.

That means SharePoint won’t just look at the content of the document—it will also understand the metadata columns you’ve applied. This is a major improvement for anyone who’s been frustrated that AI could only “see” half the picture.

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2. Anthropic added to Copilot Researcher and Studio

Microsoft announced last week that you will be able to start using Claude Sonnet 4 and Claude Opus 4.1 within the Copilot ecosystem. The first places they show up are with the Researcher Agent in Copilot Chat and as a model for Copilot Studio. Personally I am not sure what to make of this announcement given Microsoft's OpenAI relationship, so will be fun to see play out. Also, as you check this out remember that the Anthropic models are considered "external models" so the data protection story is different. Also, your administrators will have to enable this one to show up.

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3. AI Prompts Get Generative Code

If you’re not using AI Prompts yet in Power Apps, Power Automate, or Copilot Studio, you’re falling behind. AI Prompts let you throw data, inputs, or even context at Copilot and have it generate text, tables, or knowledge for you.

The latest update adds Generative Code support. This means prompts can now generate their own code—opening up possibilities like dynamically creating files, images, and even charts.

Video demo of AI Prompt to create Dynamic Charts in Power Apps

4. Computer Use in Copilot Studio (Power Automate Desktop)

Copilot Studio can now take advantage of Power Automate Desktop for what Microsoft calls Computer Use.

Think of this as RPA (robotic process automation) powered by AI. You can train an agent to open an old-school desktop app, click buttons, fill out forms, and submit info—just like a human would.

This is huge for organizations still relying on legacy systems.

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5. GPT-5 Is Showing Up Everywhere

Not new, just a reminder that Microsoft has (finally) started rolling out GPT-5 as an option in more tools. You’ll now see it in:

• Copilot Chat

• AI Prompts

• Copilot Studio agents

If you had mixed results with GPT-4/4.1 before, it’s worth testing GPT-5 for potentially better performance.

6. Microsoft Copilot Agents in Office Apps for Everyone

Previously, you needed premium licenses to use Copilot agents in Word, Excel, PowerPoint, and Outlook. Microsoft is now rolling these out more broadly across all M365 users.

This gives everyone the “first layer” of AI support inside the apps, though you’ll still need premium licenses for advanced features like full semantic search or deeper integrations.

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7. Agent Builder → Copilot Studio Lite

Microsoft can’t resist a rename. Agent Builder in M365 Copilot has now been rebranded as Copilot Studio Lite.

Functionality hasn’t really changed—it’s mostly a terminology shift—but expect to see this new name going forward.

8. Messages → Credits in Copilot Studio

Another terminology update: what used to be called messages in Copilot Studio is now credits.

This lines up better with how licensing is structured and should make more sense when you’re planning usage. At the same time, Microsoft made a few small licensing adjustments to the M365 Copilot license.

Read more

9. M365 Copilot License Value Expanding

Finally, Microsoft continues to add more and more functionality to the $30 per user/month M365 Copilot license.

If you looked at it a few months ago and weren’t sure it was worth it, it may be time to revisit. More integrations and features are being tied directly to this license, making it the de facto entry point for many organizations exploring AI.

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Wrapping Up the Copilot News

That’s it for this week’s roundup. SharePoint Knowledge Agents, AI Prompts with Generative Code, Copilot Studio Lite, licensing changes, and more. If you have thoughts on how this could improve will are all ears, just hit the Contact us button. Keeping up is hard, we are hoping to make it easier.