Microsoft has unveiled its biggest Copilot update yet, adding a coding tool, an always-on AI agent and full Office apps inside the assistant, Reuters reported on September 25. CEO Satya Nadella called it the company’s biggest update to Copilot to date.

The new “Code” feature lets users build apps, dashboards and software using natural-language prompts. It is powered by the same technology as GitHub Copilot and will reach early-access customers first.

“Autopilot”, a revamp of the Scout agent, works as a digital coworker with its own identity in the company directory and permissions users can control. It will operate in the background without repeated prompts.

Word, Excel and PowerPoint are now embedded directly inside Copilot, so users can draft documents, model budgets and build presentations without leaving the app. Microsoft also added cost-management tools that show employees what their AI usage costs.

Microsoft shares rose about 3 per cent on the announcement. The company is racing ChatGPT and Claude to turn its assistant into a one-stop shop for office workers.