Microsoft’s Copilot (the AI assistant integrated into Microsoft 365 and Windows) is evolving rapidly. In December 2025, Microsoft unveiled new Copilot plans, features, and integrations across its products. These announcements arrived amid broader AI industry trends and regulatory scrutiny. We’ve combed the latest sources to bring you a comprehensive update on Microsoft Ai Copilot News Today. This includes new pricing plans (for small businesses and enterprise), free offerings, cutting-edge features (like voice interaction and AI agents), and how to get and use Copilot. We also link to relevant resources, including official Microsoft blogs and TechDecodedly’s own recent articles (e.g. AI regulation news today: key trends and US updates) for additional context.
Copilot News Today: Announcements & Business Plans
In early December 2025, Microsoft announced Microsoft 365 Copilot Business – a new plan tailored for small and medium businesses (SMBs). Priced at just $21 per user per month, Copilot Business brings enterprise-grade AI into apps like Word, Excel, PowerPoint, Outlook, and Teams, at an SMB-friendly price. For a limited time (until March 31, 2026), Microsoft even offers discounted bundles if you add Copilot Business to an existing Microsoft 365 Business plan.
“We’re excited to announce the general availability of Microsoft 365 Copilot Business — a comprehensive, full-featured AI solution built for work at an SMB-friendly price point. For just USD 21 per user per month, Copilot Business brings secure, enterprise-grade AI into the Microsoft 365 apps SMBs use every day.”
This business plan complements the existing enterprise Copilot licensing. For larger organizations, Microsoft 365 Copilot (the full-featured AI assistant) still costs $30 per user per month (paid annually). However, Microsoft also provides Copilot Chat free with most Microsoft 365 subscriptions – more on that below. Notably, Microsoft is emphasizing flexible pricing: “Flexible Copilot plans for every organization”, whether you’re an individual, SMB, or enterprise.
Key Highlights:
- Small Business Plan: Copilot Business at $21/user-month (SMB pricing).
- Enterprise Plan: Microsoft 365 Copilot at $30/user-month (annual).
- Free Tier: Copilot Chat included at no extra cost for eligible Microsoft 365 users.
- Bundling Offer: Discounts when Copilot Business is added to Microsoft 365 Business subscriptions. These new plans were announced alongside a slate of feature updates at Microsoft Ignite 2025 (November 2025) and through official blogs. Below we break down what’s new in Copilot.
Latest Updates for Microsoft 365 Copilot (December 2025)
Microsoft is rolling out dozens of AI-driven updates across its ecosystem. Here are the key new features and announcements:
• Copilot with Work IQ: Work IQ is Microsoft’s “intelligence layer” that makes Copilot understand your work context (email, files, meetings, chat). It builds a personalized “memory” of your preferences and tasks, so Copilot can surface relevant suggestions. Microsoft reports it has shipped “more than 400 new features in the last year” to Copilot, bringing in advanced AI models like GPT-5 and OpenAI’s new Sora 2 video model. In practice, Work IQ means Copilot can answer questions using your company’s data, anticipate your needs, and even pick the right AI model (like OpenAI or Anthropic) for each task.
• Chat in Office Apps: Copilot Chat is now integrated directly into Word, Excel, PowerPoint, Outlook, and OneNote. With a file open, you can summon Copilot Chat for context-aware help (e.g. summarize a document or draft an email reply). This rollout makes Copilot Chat easily accessible in the apps you already use.
• Dedicated Word/Excel/PowerPoint Agents: New AI agents are available in Copilot Chat for Office content creation. These agents hold multi-turn conversations to generate high-quality documents, spreadsheets, and presentations. Initially in preview via Microsoft’s Frontier program, these agents ask follow-up questions to refine content and use Work IQ for context.
• Copilot Agents for IT and Teams: Microsoft introduced specialized agents like Teams Admin Agent, SharePoint Admin Agent, and Workforce Insights/People/Learning Agents. For example, the Teams Admin Agent (preview) helps IT admins automate tasks like meeting monitoring and user provisioning. The SharePoint Admin Agent uses AI to identify inactive sites or overshared content, then takes actions (like archiving) to ensure compliance. These reflect Microsoft’s push toward “agentic” business workflows.
• Voice and Multimodal Interaction: You can now talk to Copilot like a colleague. Windows 11 (in preview) includes a “Hey Copilot” voice trigger or a Copilot key (Win+C) to start a conversation without leaving your current window. The Copilot mobile app also supports voice: just say “What are my top priorities today?” or “Catch me up on the meeting I missed” and Copilot will respond out loud. This hands-free option makes the AI feel more natural and immediate.
• Copilot in Windows 11: Windows 11 is embedding Copilot everywhere. For example, you’ll soon be able to hover over files in File Explorer and invoke “Ask Copilot” for insights without leaving Explorer. A new Agenda view in the Notification Center (preview Dec 2025) will list your upcoming events chronologically, letting you join meetings or ask Copilot about them. Windows Narrator is getting AI-driven personalization and new natural-sounding voices, thanks to Azure Ai latest text-to-speech models. In short, Windows is becoming an AI canvas, not just an OS.
• Copilot App and Notebooks: Microsoft released a standalone Microsoft 365 Copilot app (Windows, Mac, iOS, Android) that brings all your productivity tools together. In this app you can chat with Copilot, create content, quickly find files, and access M365 apps in one place. Relatedly, Copilot Notebooks (in OneNote) let you organize chat threads, documents, and notes into AI-assisted notebooks. (Think of it like a living, searchable project journal.) The Copilot app is set to auto-install on Windows 11 PCs outside the EU/EEA starting October 2025.
• Smarter Search: The Copilot AI now powers enterprise search across Microsoft 365 and connected apps. Whether you type or ask a question, Copilot Search uses natural language and Work IQ to surface relevant documents, chats, or even third-party data. It goes beyond keywords to understand “what you mean” in context.
• New AI Models and Media: Microsoft continues to integrate cutting-edge AI. At Ignite 2025, Microsoft announced its adding Anthropic’s Claude models to Copilot’s repertoire, giving organizations model choice. OpenAI’s GPT-5 and Azure’s Sora 2 are now powering Copilot; for example, Copilot’s video creation (in the Create tab) uses Sora 2 to let you generate or edit short videos for marketing or social content.
• Copilot Chat for All M365 Users: Importantly, Copilot Chat remains free for eligible Microsoft 365 subscribers. And Microsoft plans to extend Copilot Chat even to users without a paid Copilot license. By March 2026, Copilot Chat (with AI in Outlook, Word, Excel, and PowerPoint) will come to users on personal plans, making basic AI assistance widely accessible even without the $30 license.
• AI Security and Compliance: Microsoft emphasizes that Copilot respects existing security boundaries. For example, Copilot honors Microsoft Purview sensitivity labels and permissions, ensuring data isn’t overshared. SMBs get Defender and Purview SKUs to complement Copilot – giving enterprise-grade protection (like anti-phishing and data governance) at smaller scale.
In summary, Copilot is rapidly gaining new skills: voice control, AI agents, deep Office integration, and content creation tools. More than 90% of Fortune 500 companies now use Copilot, and Microsoft is pushing hundreds of updates each year.
Microsoft Copilot Update: New Features at Ignite 2025
At Microsoft Ignite 2025 (Nov 2025), several Copilot innovations were highlighted. Notable announcements included:
• Work IQ and Agents: Copilot’s Work IQ now understands your entire organization’s “work chart,” not just org charts. It infers your next best action, suggests relevant documents, and even picks which AI agent can help. Microsoft also unveiled Frontier Program features: Word/Excel/PowerPoint Agents (AI co-creators for Office content) and Agent 365 (a control plane for managing Copilot agents).
• Desktop Voice (Hey Copilot): As noted above, Windows 11 will let you say “Hey Copilot” or press Win+C to open Copilot chat in a focused window. This was demonstrated at Ignite to show a “conversation partner” UI.
• Copilot in Outlook: The Copilot mobile app (and soon Outlook) now have one-tap prompts like “summarize and reply” to quickly handle email on the go. Copilot will also soon analyze entire inboxes and calendars (not just single threads) for non-Copilot-license users.
• Edge and Teams Integration: Microsoft Edge new Copilot Mode (for Enterprise) turns the browser into a secure AI assistant. Multi-step AI workflows (multi-tab reasoning) are on the way in Edge. In Microsoft Teams, Teams Mode (public preview) lets you turn a Copilot chat into a Teams group chat with your colleagues.
• Privacy and Controls: Microsoft emphasized enterprise-grade security. Copilot honors M365 security policies, and admins get new tools to manage Copilot (like a Copilot Studio billing dashboard and usage analytics). These enable IT to monitor AI usage and costs within the organization.
For readers wanting all the details, the Microsoft Ignite 2025 Book of News contains full write-ups of these updates, and the Microsoft 365 Copilot Blog regularly posts deep dives (see the Tech Community Copilot Blog for posts like “Introducing Word, Excel, and PowerPoint Agents in Copilot”).
Is Microsoft 365 Copilot Free? Pricing and Plans Explained
A frequent question is “Is Microsoft Copilot free?” The short answer is: Basic Copilot Chat features are free, but the full Copilot assistant (with advanced app integration and agent creation) requires a paid license.
• Copilot Chat (Free): Every user with an eligible Microsoft 365 subscription gets Copilot Chat at no extra cost. This gives you secure AI chat powered by Microsoft’s large language models, plus access to use AI agents on a pay-as-you-go basis. In practice, you can open the Copilot Chat web or app and ask questions (even upload files or use “Copilot Pages” interactive canvases) without a license fee. Copilot Chat is essentially an AI extension of your Microsoft 365 – it’s included.
• Microsoft 365 Copilot (Paid): To have Copilot inside Office apps (Teams, Word, Excel, PowerPoint, Outlook, etc.) and create your own agents via Copilot Studio, you need a Copilot license (separate from your usual Microsoft 365 license). For business and enterprise, this costs $30 per user per month (annual commitment). With this, Copilot will have full access to your work data (Graph, connectors, etc.) and can perform tasks like drafting documents directly inside Word or analyzing data in Excel.
• Copilot Business: For SMBs, the new Copilot Business plan (introduced Dec 2025) provides essentially the same AI features as Copilot at $21/user-month. It is built to run on standard Microsoft 365 Business subscriptions, making enterprise AI accessible to smaller teams.
Getting Microsoft 365 Copilot (Download and Setup)
How do you get Copilot? If your organization has a qualifying Microsoft 365 license, Copilot Chat is already available. To download the Microsoft 365 Copilot app:
1. Visit the Microsoft Copilot download page.
2. Choose the Windows (or Mac/iOS/Android) installer. The Copilot app is free for eligible users.
3. Install and sign in with your Microsoft account. (For Windows 11 users, Copilot may auto-install soon.)
4. Once installed, open the Copilot app to chat with your AI assistant, find files, and access Word, Excel, etc. from one place.
Administrators can also deploy Copilot across the enterprise using Microsoft’s management tools. If you need the full Microsoft 365 Copilot integration, your IT team must assign you a Copilot license in the Microsoft 365 Admin Center.
FAQs
1. What is Microsoft Copilot?
Microsoft Copilot is an AI assistant built into Microsoft 365 and Windows 11 that helps you write, summarize, analyze, and automate tasks across apps.
2. Is Microsoft Copilot free?
Yes—Copilot Chat is free for eligible Microsoft 365 users, but full app integration and agent creation require a paid Copilot license.
3. How much does Microsoft 365 Copilot cost?
Copilot costs $30 per user/month for enterprise and $21 for SMBs under the Copilot Business plan.
4. What can Copilot do in Word and Excel?
Copilot can summarize documents, generate drafts, analyze spreadsheets, create formulas, and build charts using natural language prompts.
5. Does Copilot work on Windows 11?
Yes—Windows 11 includes built-in Copilot features like voice activation (“Hey Copilot”), file insights, notifications, and system actions.
6. What are Copilot agents?
Copilot agents are AI-powered assistants that automate multi-step workflows, such as onboarding, meeting analysis, or SharePoint clean-up.
7. Can Copilot access my data?
Yes, but only within your existing Microsoft 365 permissions; Copilot honors Purview labels, admin controls, and organizational policies.
8. What is Copilot Work IQ?
Work IQ is Microsoft’s AI intelligence layer that learns your work patterns, preferences, and context to deliver more accurate, personalized suggestions.
9. Does Copilot work on mobile phones?
Yes—Copilot is available on iOS and android via the Copilot app, offering chat, voice commands, file search, and email assistance.
10. Is Copilot safe for business use?
Yes—Copilot uses enterprise-grade security, encryption, compliance controls, and privacy boundaries built into Microsoft 365.
11. What’s new in Microsoft Copilot 2025?
Major 2025 updates include voice control, AI agents, deeper Office integration, Windows enhancements, and smarter enterprise search.
12. How do I enable Copilot in Microsoft 365 apps?
If you have a Copilot license, simply open Word, Excel, PowerPoint, Outlook, or OneNote and click the Copilot icon to activate AI assistance.
Conclusion
Microsoft’s Copilot is moving fast. In just a few months (from Ignite 2025 through Dec 2025), it gained voice control, deeper Windows integration, specialized agents, and new plans for small businesses. This continuous innovation shows Microsoft’s commitment to AI-assisted work.
For readers, the takeaway is: stay informed and experiment. If you haven’t tried Copilot yet, download the free Copilot app or turn on Copilot Chat in Office. Watch for the new Copilot Business plan if you run a small company. And follow official updates (like the Microsoft Copilot blog or TechDecodedly) to learn about each new feature.
As AI becomes more integrated into productivity tools, it’s reshaping jobs and workflows. By leveraging Copilot’s latest capabilities today, you can work smarter and faster, gaining insights and automation that were impossible just a few years ago.
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