Microsoft recently announced an exciting update to Microsoft 365 Copilot that introduces a range of new features, including AI-driven search functionality, so-called reasoning models, and a new Agent Store. These innovations promise to transform the way businesses search and work with data. Here's a summary - we think this could start to work super logically for most businesses!
AI-powered search for businesses
One of the most notable additions is AI-driven enterprise search. This was previously a challenge for enterprise search providers because of the complexity of policies across different data sources. The goal is to ensure that only appropriate documents are displayed. According to Jon Friedman, vice president of design and research at Microsoft, Copilot Search brings together the power of search and AI to deliver more relevant, context-aware search results. In a video, Friedman explains that the system connects working data and dozens of apps so users can quickly find what they need. In addition, Copilot can provide summaries of files so people understand the content without opening the document.
Managing interactions with Copilot
For those concerned about a large language model searching corporate documents, Microsoft has introduced the Copilot Control System. This system allows IT administrators and security officers to manage interactions with Copilot and its access. This also includes an Apps and Agents section in Data Security Posture Management for AI with Purview, specifically for monitoring. In addition, a Copilot Analytics service and a Copilot Studio Agents Report are available in Microsoft Viva Insights.
Two new agents: Researcher and Analyst
Microsoft 365 Copilot also introduces two new elements: Researcher and Analyst. These are called reasoning agents, based on reasoning models from OpenAI. The term reasoning here refers to dividing tasks into steps and showing how they are performed.
The Researcher agent is designed to help with complex multi-step research tasks. In a demonstration, Microsoft showed how an agent was asked to create a marketing plan for a new smart sneaker, focusing on ergonomic design, health features and GPS integration. This included recommendations for digital channels, content strategy and insights from previous campaigns and the competition.
The Analyst agent promises similar performance in data analytics. A Microsoft employee explained in a video that Analyst is built on OpenAI's o3-mini reasoning model and is optimized for advanced data analysis in the workplace. The agent knows when and how to use Python, even for people who have never written code before, and can also explain the code.
New Agent Store
These new agents are available in the new Agent Store, which also features products from partners such as Jira, Monday.com and Miro. Companies can additionally build their own agents for specific tasks or to give Copilot access to specific data.
In the Create environment, Copilot has been expanded to include image generation based on OpenAI's GPT-4o. People who want to focus on design or just don't feel like using their creative talent can now have more types of banners, visual expressions and marketing copy created by Microsoft's AI.
Notebooks and phased rollout
Also new is Notebooks, a place where users can collect individual files that Copilot can then analyze on demand. Friedman explained that Copilot Notebooks collects all his files around a project in one place, so he can make targeted calls to Copilot based on them.
Some Wave 2 features, such as the Researcher and Analyst agents, are available immediately to Frontier Program participants. For the general public, they will be rolled out gradually through May.
The AI paradox according to Gartner
The announcement of these new features coincides with a prediction by IT consulting firm Gartner about an AI paradox in the coming year. According to Gartner, expectations around generative AI are declining due to high failure rates in pilot projects and disappointing results. However, investments are rising. Gartner expects global spending on generative AI to top $644 billion in 2025, up more than 76 percent from 2024.
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