Microsoft has unveiled a new generation of artificial intelligence (AI) “agents” for Word, Excel and PowerPoint — tools designed to help users write, analyse data and build presentations more efficiently.
Available through Microsoft 365 Copilot, the agents are being introduced to both business and personal subscribers, marking one of the company’s biggest steps yet to integrate AI into its core Office applications.
“AI is becoming a partner in productivity,” said Yusuf Mehdi, Microsoft’s consumer chief marketing officer. “With agents, we’re moving beyond simple prompts to true collaboration between people and technology.”
From typing to “vibe working”
The new features form part of what Microsoft calls “vibe working” — where people describe what they want to achieve, and AI handles the technical details. Instead of one-off commands, the agents work through tasks interactively, refining results as users respond.
For example, in Excel, the Agent Mode can analyse large data sets, generate charts, and summarise insights — all from a short written instruction such as “Run a full analysis on this sales data set.” The AI automatically selects the right formulas, checks accuracy and visualises key findings.
In Word, the agent can draft or update reports, format text, and pull data from linked emails or files. Users can ask it to “update the September report with the latest figures” or “apply the new branding guidelines”, with Copilot carrying out each instruction step-by-step.
Meanwhile, PowerPoint gains an Office Agent in Copilot Chat, allowing users to describe a presentation idea — such as “create slides encouraging employees to increase their pension contributions” — and receive a fully formatted deck complete with visuals and narrative points.
Built on multiple AI models
The new Copilot features combine Microsoft’s in-house technology with AI models from OpenAI and Anthropic, the maker of Claude. The mix aims to deliver faster, more reliable results across creative and analytical tasks.
The updates are initially available on the web via Microsoft’s Frontier preview programme, with desktop versions expected soon. Business users can access them through the $30-per-month Microsoft 365 Copilot licence, while personal users will find the tools in upgraded Microsoft 365 Family and Personal plans.
Price rises and AI credits
To support the rollout, Microsoft is increasing its subscription prices for the first time in 12 years. The Personal plan will rise from $6.99 to $9.99 per month, and the Family plan from $9.99 to $12.99.
Each account will include 60 monthly “AI credits”, which are consumed whenever Copilot performs a task, such as generating text or analysing data. Users who need unlimited access will be able to upgrade to Copilot Pro.
A new era of productivity
Analysts say the update could redefine how people use Office software.
“Microsoft is effectively turning Word, Excel and PowerPoint into collaborators,” said tech consultant Laura Chan. “For many workers, that means less time formatting and more time thinking.”
As rivals including Google and Apple race to add similar AI capabilities, Microsoft hopes its long-familiar apps will lead the way in making AI a natural part of everyday work.
