Welcome back to our monthly update on what's new with Microsoft 365 Copilot! It's August 2025, and as always, we've got the details. This month, we'll clarify the new and important features Microsoft has added to Copilot within the Microsoft 365 environment, focusing on two main aspects: management and control on one hand, and user capabilities on the other.

Copilot Control System

Copilot management resources in Microsoft 365 admin center

Soon, SharePoint agents will be added to the agent inventory in the Microsoft 365 admin center! This new feature will give AI administrators centralized visibility and control of SharePoint agents, along with other agent types. Admins can discover, manage, and govern SharePoint agents within the "Agents" section in the Microsoft 365 admin center, where they can view metadata and take actions such as blocking or unblocking. This feature is now available.

Admins can now monitor adoption and usage trends for Copilot Search in the Usage Reports of the Microsoft 365 Admin center. These insights optimize user engagement and identify enablement opportunities for “Copilot for Microsoft365” .

The Microsoft 365 admin center now includes a request and approval workflow for both Frontier and Copilot for Microsoft365 agents to help with governance and compliance, especially for organizations.

Here are the key points of the Frontier program for Copilot:

• Early Access: Allows administrators to try out the latest Copilot model updates before they are officially released to the public.
• Feedback Mechanism: Provides a channel for admins to give feedback on these new model updates.
• Centralized Control: Establishes a centralized, auditable process for managing agent requests.
• Approval Workflow: Gives administrators the ability to review and approve agent requests before activating them.

This approach balances innovation with security and policy requirements. You can find the approval flow for Frontier and Microsoft agents in the Microsoft 365 admin center under Copilot > Agents > Requested agents.

Message Pack integration allows admins to manage Copilot Chat consumption with capacity packs. It unites billing, usage monitoring, and policy alignment in the Microsoft 365 admin center. Organizations gain improved cost predictability, simpler admin, and the ability to scale Copilot Chat usage on a pay-as-you-go basis. Admins can update this setting in the Microsoft 365 admin center under Copilot > Billing & usage > Pay-as-you-go services. This feature was rolled out in August.

Admins now have greater control over agents. Through the Microsoft 365 admin center, they can block, reassign, or retire unowned agents to ensure compliance and reduce risk. This feature strengthens accountability and minimizes unmanaged assets. Admins can access it in the Microsoft 365 admin center by navigating to Copilot > Agents > Dashboard Card > Missing an Owner.

Identify risky AI usage with Microsoft Purview

Purview IRM now detects the misuse of AI in Copilot for Microsoft 365 and Studio by identifying prompts with sensitive content and responses, helping prevent insider misuse. IRM classifies user risk by activity, enabling administrators to apply targeted data security policies. IRM analytics allow administrators to explore the top AI-related risks and receive policy recommendations, including templates with indicators such as risky Copilot prompts and sensitive responses. These indicators integrate with Adaptive Protection to assign insider risk levels and apply stronger security policies via Data Loss Prevention, Data Lifecycle Management, or Entra Conditional Access, depending on the risk level. Users Considered at risk can be automatically blocked from accessing sensitive SharePoint sites, for example. This feature was rolled out in August.   

User capabilities

Easier access and broader reach with SharePoint agents:

Users will soon access SharePoint agents directly in the Microsoft 365 Copilot app. This eliminates the need to navigate to individual SharePoint sites. Recently used agents will be just a click away. After interacting with a SharePoint agent, it appears in the recently used agent’s sidebar in Copilot. This creates a streamlined entry point. SharePoint agents now open in Copilot by default.

SharePoint agents are now discoverable in the Teams app store. This makes it easier to add them to a workspace and collaborate with AI-enhanced support. Users will see a personalized list of their most recently used SharePoint agents based on their activity in the Teams app store. Users can then add these agents directly to a chat or channel. If a user has never used a SharePoint agent, it simply won’t appear. This feature is now available.

A new model and more reference options for Copilot Chat

Now, Copilot can understand and respond to users' prompts using GPT-5's real-time capabilities. The "Try GPT-5" button in Copilot Chat will activate GPT-5 for that session. Simple tasks use the high-throughput model, while complex tasks use the deeper reasoning model.

The new Tools menu in Copilot Chat offers easier access to powerful AI capabilities. Located in the chat input box, the menu provides a way to discover and launch features like Designer, Pages, and pinned agents. Users will also see advanced features, such as Researcher and Analyst. By centralizing these tools, Copilot Chat helps users work smarter and faster by reducing context switching.

Copilot now provides responses incorporating insights from attached emails, enabling more comprehensive reasoning over various types of attachments. This feature is available in Outlook and the Microsoft 365 Copilot app when using a Microsoft 365 Copilot license.

When users are short on time, Copilot Chat can help them create a presentation from an idea. In the Microsoft 365 Copilot app, users can describe what they need, and Copilot for Microsoft365 will transform their ideas into a PowerPoint presentation with a structured layout, visuals, and formatting. With a Copilot license, Copilot Chat can access the user's work content to personalize the presentation, which is a key advantage for Saudi companies looking to boost productivity.

Image reasoning and editing in Copilot Chat

When users upload PDFs, Word docs, or PowerPoint presentations to Copilot, they can ask questions about their visual content and receive answers, e.g., "What's shown in the image on page 4?" This makes it easier to extract visual insights.

Copilot Chat allows users to bring visual ideas to life in conversation. Natural language in prompts generates new images or edits existing ones, facilitating iteration and information extraction.

Users can track all additions to a prompt during creation or editing. An attachment snippet will appear when content is added, facilitating easier management and referencing of visuals during revisions.

Copilot Chat's new visual editor, available in September, enables seamless prompt creation/editing. Its canvas-based controls and natural language guidance help users iterate faster and achieve the desired results. Adjust images quickly, including upscaling and auto enhancement if needed.

Generate and edit images in the Microsoft 365 Copilot App

Microsoft 365 Copilot is bringing its generative AI features to more users, as the ability to create and edit images is now available without a Microsoft 365 Copilot license. These users can now create images and edit visual content using AI-powered tools. This update rolled out in August on web, Windows, and macOS, and will roll out on mobile in October. This is a significant step for companies looking for advanced services in the region. This update rolled out in August on web, Windows, and macOS, and will roll out on mobile in October.

Summarize with Copilot in Microsoft Edge for Business

In Microsoft Edge for Business, users can access the Microsoft 365 Copilot Chat summarization feature by right-clicking on a webpage. Instantly summarize long articles, documents, or pages to stay in flow while researching, reviewing, or multitasking.

Custom dictionaries available for Copilot in Teams

IT administrators, now have the option to upload custom dictionaries for tenant languages (English, Spanish, Japanese, French, German, Portuguese, Italian, Chinese [Simplified]). Access this feature via the Copilot Settings page of the Microsoft 365 admin center. Custom dictionaries integrate specific organization terminology to enhance the accuracy and meaning of meeting transcripts. This benefits Copilot for Microsoft365 and intelligent meeting recap by ensuring accurate recognition of unique business language. Organizations can improve productivity and reduce misunderstandings by tailoring the AI to their needs. This new feature offers deeper insights from meetings.

Ctelecoms, as a Microsoft Gold Partner, can help Saudi businesses use Microsoft 365 Copilot. With our expert guidance and support, you can improve productivity, optimize workflows, strengthen data security and governance, and transform Copilot features.

Take a look back at last month's highlights using the following links:

Microsoft 365 Copilot May 2025 Productivity and AI Updates

What’s new in Microsoft 365 Copilot | July 2025