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Hackers use AI to bypass Microsoft 365 security and access accounts
EvilToken phishing toolkit uses AI for personalized emails and dynamic device codes that bypass Microsoft 365 MFA. Grants attackers full inbox, files, and Graph access. Targets finance teams; exposes Copilot data foundation. Disabling device code flow in Entra ID prevents this.
Microsoft swaps Copilot default model to Anthropic and adds external app connectors
Microsoft 365 Copilot gains federated connectors to pull real-time data from Notion and Canva into prompts starting April 2. Anthropic models replace OpenAI as default from May 4, with session persistence and model selection rolling out to 2026. This breaks workflow silos but risks mixing unverified external data into company chats.
Microsoft links Copilot Studio to existing Azure data indexes
Microsoft updated Copilot Studio to connect custom agents directly to existing Azure AI Search indexes using an endpoint URL and admin key. This eliminates new data pipelines, allowing business users to generate answers from live enterprise data like HR policies or docs in minutes, bridging the gap between data teams and AI builders.
Microsoft restricts free Copilot access and throttles basic users
Microsoft restricts free Copilot Chat access in Word, Excel, and PowerPoint for unlicensed users in organizations over 2000 seats starting April 15. Mid-sized firms retain access but face throttling during peak times. Basic tier renamed Copilot Chat Basic; paid is Copilot Premium. This forces IT to evaluate premium licensing for consistent performance.
Microsoft legally classifies Copilot as an entertainment tool
Microsoft updated its Terms of Use to classify Copilot as an entertainment tool, explicitly warning users not to rely on it for important advice due to potential mistakes. This legal shift aligns with user frustrations over inaccuracies, despite $30/user/month enterprise marketing. Businesses face full liability for errors in critical tasks like compliance docs or client emails.
Microsoft Copilot Studio lets AI agents collaborate across apps
Microsoft Copilot Studio releases multi-agent orchestration to general availability. AI agents now communicate and hand off tasks across Microsoft Fabric, M365 SDK, Word, Excel, and Teams. Includes Immersive Prompt Builder, content moderation, and Claude Opus support. Rollout starts now through April 2026. Enables scalable workflows without custom code.
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