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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.
M-Files adds permission controls to Microsoft 365 Copilot
M-Files integrates with Microsoft 365 Copilot and Copilot Agent Builder. Copilot accesses M-Files documents like SharePoint files, enforcing user permissions and using metadata from the enterprise knowledge graph for better context. No extra costs or setup needed. This fixes prior risks of AI exposing sensitive data or giving incomplete advice in regulated settings.
Microsoft adds customer service tools to Copilot in Office apps
Microsoft's Service Agent brings Dynamics 365 Customer Service data into Copilot within Office apps. Agents summarize cases, prioritize tasks, access knowledge articles, update records, and trigger workflows using natural language prompts in Word, Excel, Teams, or Outlook. It eliminates app-switching, streamlining resolutions. Public preview requires existing Dynamics 365 setup.
Microsoft rolls out advanced Copilot agents to US government clouds
Microsoft introduces Researcher and Analyst agents to Microsoft 365 Copilot in US government clouds (GCC, GCC-High, DoD). Researcher performs multi-step research on work content to create drafts. Analyst delivers data insights and visualizations. Agent Builder enables custom agents publishable to Teams and apps. This enables compliant AI for complex government tasks previously requiring manual effort or external tools.
Copilot Studio adds no-code testing for custom AI agents
Copilot Studio now offers Agent Evaluation, a no-code tool for testing custom AI agents with test sets and graders. It provides auditable records for compliance and CI/CD integration. Single-turn tests and classification graders enable scalable validation, replacing manual checks with reliable results for production-ready M365 automations.
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