Microsoft has unveiled a new wave of AI-driven features in Microsoft 365 designed to make work smarter, more connected, and collaborative.
Satya Nadella, Microsoft’s CEO, called it a “model-forward” approach, integrating generative AI directly into everyday productivity tools.
Announcing the upgrades on X (formerly Twitter) on October 5, 2025, Nadella said, “Supercharged past few weeks as we push the bounds of model-forward innovation across Microsoft 365.”
Key AI Features in Microsoft 365
Microsoft 365 now comes with several powerful AI-driven capabilities:
Excel with Agent Mode – Users can give Copilot a prompt, and it works directly inside the workbook instead of a separate chat.
Collaborative AI in Teams – Teams now have multi-player AI experiences where agents work within the context of your group, channel, or meeting.
Knowledge Agent – AI gets smarter using enterprise graph data to provide intelligent insights.
GitHub Integration in Teams – Move from conversation to code directly within Teams. Group chats can also be converted into tasks for Copilot’s coding agent using a simple @mention.
Model Choice in Researcher – Users can switch between AI models like OpenAI and Anthropic to get the best results for their task.
Introducing Microsoft 365 Premium
Microsoft also announced Microsoft 365 Premium, the company’s most advanced AI subscription for individuals, priced at $19.99 per month.
This new plan combines:
Microsoft 365 Family and Copilot Pro with higher usage limits
Early access to experimental AI features like Office Agent and Agent Mode
Nadella emphasized that embedding AI into the flow of work unlocks new levels of productivity, helping people work smarter, faster, and more creatively.
The aim is to empower every person on the planet by making AI a seamless part of daily tasks.
What This Means for Users
With these updates, Microsoft 365 users can expect:
Smarter collaboration and teamwork through AI-powered tools
Faster, more creative ways to handle data, coding, and research
Flexibility in AI model selection for better results
Access to cutting-edge AI features earlier than ever
Microsoft’s new AI initiatives reflect a push to make every workflow more intelligent, allowing users to focus on creativity and productivity rather than routine tasks.
