Microsoft is enhancing its suite of productivity tools by introducing Copilot Chat to its popular applications: Word, Excel, PowerPoint, Outlook, and OneNote. This innovative feature is now available to paying Microsoft 365 business customers, marking a significant step in the integration of artificial intelligence into everyday workflows.
Features and Functionality
Copilot Chat, which stands for Microsoft 365 Copilot Chat, is an AI-driven chat solution that allows users to engage with AI agents. Unlike its predecessor, Microsoft 365 Copilot, which has access to organizational content, Copilot Chat draws information solely from the web. This distinction is crucial for users who seek real-time, web-based insights while working on their documents.
While Microsoft states that Copilot Chat is “included at no additional cost” for Microsoft 365 users, this applies specifically to those with Entra accounts who hold licenses for Microsoft 365, Microsoft 365 Business, Microsoft Teams, and Office 365. A detailed list of eligible licenses can be found in the support documentation provided by Microsoft.
Seth Patton, general manager of the Microsoft 365 Copilot product marketing team, elaborated on the functionality of Copilot Chat, stating, “Copilot Chat is secure AI chat grounded in the web—and now, it’s available in the Microsoft 365 apps. It’s content aware, meaning it quickly understands what you’re working on, tailoring answers to the file you have open.” He emphasized the convenience of having this feature readily accessible in a side pane, allowing users to minimize disruptions caused by switching between applications.
Enhanced Access with Microsoft 365 Copilot License
For those looking for a more comprehensive experience, Microsoft 365 customers have the option to grant Copilot Chat access to all their data, not just the document currently in use, by acquiring a Microsoft 365 Copilot license. Patton noted, “A Microsoft 365 Copilot license unlocks the most powerful version of Copilot Chat, reasoning over not just the file or email you have open, but all of your work data—drawing from personal and shared documents, emails, meetings, chats, and more.”
Upcoming Installations and IT Management
In a move to streamline user experience, Microsoft plans to begin automatically installing the Microsoft 365 Copilot app on Windows devices outside the EEA region that have the Microsoft 365 desktop client applications, starting next month and continuing through mid-November. However, IT administrators will retain control over these deployments, with the option to opt out via the Apps Admin Center.
As part of its ongoing efforts to expand the reach of Copilot, Microsoft also announced plans to integrate Microsoft 365 Copilot agents into the Edge sidebar, beginning in late September 2025. This integration will further enhance user accessibility to AI-driven assistance while navigating the web.
