Ignite 2025: Microsoft Expands Agent Mode Across PowerPoint, Excel, and Word

Microsoft is kicking off its Ignite 2025 conference this morning, and the company announced several updates for Microsoft 365 Copilot. Microsoft said that 90% of the Fortune 500 now use Microsoft 365 Copilot, and these new capabilities are designed to help every organization become a Frontier Firm, one that is human-led and agent-operated.

Agent Mode in Office apps

First of all, the new Agent Mode in Excel and Word that Microsoft launched in September is also getting better. Agent Mode in the Office apps allows users to collaborate with the Copilot AI assistant within the apps or through chat to create high-quality documents, spreadsheets, and presentations.

Agent Mode in Excel offers an integrated web search capability that allows users to bring external data into workbooks. It lets users choose between Anthropic and OpenAI reasoning models. Moreover, Agent Mode in Word is generally available for Microsoft 365 Copilot and Microsoft 365 Premium subscribers. This feature can now leverage Work IQ to automatically choose relevant sources (such as files, emails, and meetings)

Microsoft has also announced early access to Agent Mode in PowerPoint via the Frontier program on the Insiders Beta Channel for Windows. This feature introduces AI-powered co-creation directly within the PowerPoint app. It can update branded templates, build new slides, format content, and pull context from work data and web sources to deliver dynamic presentations.

Word, Excel, and PowerPoint Agents in Microsoft 365 Copilot

Microsoft 365 Copilot has introduced specialized Word, Excel, and PowerPoint Agents through the Frontier program, which allow users to create high-quality content directly from Copilot Chat. These agents assist with tasks (like research, formatting, and design) and support multi-turn conversations and transitions to apps for further editing. These new AI agents are available in early access to licensed customers and will be coming soon for personal and family subscribers.

Additionally, Microsoft 365 Copilot now supports voice commands, which allows seamless switching between voice and text on mobile and desktop. Users can start conversations by tapping “Start a new voice chat” or saying “Hey, Copilot” to receive personalized insights from meetings, emails, and files.

Microsoft has also announced the availability of Copilot Chat capabilities for all Microsoft 365 subscribers at no additional cost. In early 2026, users will also gain access to Agent Mode in Copilot Chat and the Office apps.

Updates to Copilot in Outlook

Microsoft 365 Copilot in Outlook is getting several new features to simplify email and scheduling tasks. On mobile, users can now use interactive voice commands to summarize unread emails and perform actions like replying, deleting, or flagging messages. Moreover, one-tap prompts such as “Triage my inbox” and “Summarize and reply” are now generally available across Outlook for Windows, web, iOS, Android, and the classic Outlook desktop app.

Additionally, the Copilot AI assistant now enhances meeting scheduling by allowing users to book meetings directly from chat. It can find available times, reserve rooms, draft agendas, and send invites. Copilot in Outlook also helps to resolve conflicts by automatically rescheduling flexible meetings and notifying users of changes. This feature is available in early access in Outlook for Windows and the Outlook web app for Targeted Release customers.

Microsoft 365 Copilot Business

Microsoft 365 Copilot Business is a new subscription that will launch in December for small and midsize businesses with under 300 users. For $21 per user per month, it will help customers automate routine tasks like summarizing emails, drafting documents, analyzing data, and capturing meeting notes. Businesses will also be able to add agents to handle processes and free up time.

Work IQ adds Copilot, SharePoint enhancements

Work IQ, an intelligence layer that powers Microsoft 365 Copilot and agents, is getting a couple of updates in Microsoft 365 Copilot and SharePoint. Work IQ builds on three core elements: users’ work data (emails, files, meetings, and chats), memory (preferences, habits, and workflows), and inference (the ability to connect patterns and predict next steps).

Conversational memory in Microsoft 365 Copilot retains context across sessions using work profiles, preferences, and past interactions for more personalized responses, with full user control to review or delete data. Additionally, Copilot now reasons over structured metadata in SharePoint libraries, which enables highly accurate, context-aware answers grounded in rich content, including metadata, embedded images, intranet pages, and sensitivity-labeled files.

Last but not least, the Create experience in Microsoft 365 Copilot now supports OpenAI’s Sora 2 video model. Users can create short AI-generated video clips from text commands or replace stock footage with AI-generated content in their projects. This feature is currently available for commercial customers in the Frontier program.