Microsoft 365 Copilot is set to feature broader AI functionalities in August 2026, including the integration of GPT-5.6, advanced task handling, and new creative tools designed to streamline drafting, analysis, and collaboration across multiple Office applications.
Microsoft 365 Copilot is gaining a broader set of AI features in August 2026, with Microsoft and OpenAI positioning the platform as a more capable assistant for drafting, analysis and collaboration across Word, Excel, PowerPoint, Chat and Cowork. OpenAI said GPT-5.6 is now the preferred model inside Microsoft 365 Copilot, a change intended to improve the quality of generated work while reducing the effort needed from users.
The most significant change is in task execution. According to Microsoft, Copilot Cowork is now generally available worldwide after a preview period and is designed to handle long-running, multi-step work across multiple tools. Microsoft said the system is built on Work IQ, which helps it understand data, tools and organisational context so it can plan and complete tasks end-to-end rather than merely suggesting next steps.
That capability is being paired with wider creative and editing functions. Geeky Gadgets reported that users can now ask Copilot to produce polished PowerPoint sales decks with charts and visuals, while additional support for markdown, plain text and RTF files should make it easier to move material into Copilot without conversion. Copilot notebooks are also being opened up to all users across commercial and educational licences, giving more people a shared space for brainstorming, drafting and project work.
Microsoft is also expanding the tools around the assistant. The Prompt Lab now includes a larger template library for tasks such as email drafting and project planning, while Copilot Pages has gained AI editing suggestions aimed at improving clarity, structure and tone. The company is also pushing more visual output, including infographics and presentation assets generated from notebook content, which could be useful for reports, executive updates and teaching materials.
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