Microsoft Puts Full Word, Excel and PowerPoint Inside Its New Copilot App

Microsoft is changing its office AI strategy. Instead of just putting Copilot inside Office apps, it now centers on a new Copilot app that comes with full Word, Excel and PowerPoint tools for creating, editing and teamwork.

Users can create and edit these files right inside Copilot without opening separate apps. Tasks can start with a simple chat prompt, or bigger jobs can run through Copilot Cowork, like turning research notes into a document. Unlike the old version that could only create files, the new one lets AI rewrite content, add tables, or users can make edits themselves with standard controls.

For teamwork, users can share files, add comments and edit together with live updates. A new Library section keeps recent Office files, Copilot pages and AI-made images in one place. Files still live in OneDrive with formats and version history saved, and users can pick a specific AI model or let Copilot choose one automatically.