What’s new in Microsoft 365 Copilot | May 2025

Potential data oversharing due to incorrect permissions has always been an area of risk for organizations, and the speed at which GenAI can access and use data further amplifies this risk. Previously, we announced the public preview of Microsoft Purview Data Loss Prevention (DLP) for Microsoft 365 Copilot web chat to help further reduce the risk of AI-related oversharing at scale by preventing Copilot from using files with specific sensitivity labels in responses and grounding. Now, we are extending this capability to Copilot experiences in everyday apps, such as rewriting text in Word, summarizing presentations in PowerPoint, or generating formulas in Excel. Here’s how it works: 

Current file DLP checks: Copilot now respects sensitivity labels on an open document or workbook. If a document has a sensitivity label and a DLP rule that excludes its content from Copilot processing, Copilot actions like summarizing or auto-generating content directly in the canvas are blocked. Chatting with Copilot is also unavailable.

File reference DLP checks: When a user tries to reference other files in a prompt—like pulling data or slides from other labeled documents—Copilot checks DLP policies before retrieving the content. If a DLP policy is configured to block Copilot from processing files with that file’s sensitivity label, Copilot will show an apology message rather than summarizing that content—so no accidental oversharing occurs.

This public preview reflects our ongoing commitment to deliver robust data protection for AI-powered workflows. By extending the same trusted DLP principles to Word, Excel, and PowerPoint, we’re empowering admins to embrace AI confidently without sacrificing control over an organization’s most valuable information. This feature is rolling out in Public Preview in May and will be generally available in June. Learn more about Data Loss Prevention.

A unified experience and new reports for Copilot Analytics

Soon the Microsoft Copilot Dashboard and Viva Insights advanced reporting will be unified in a single interface. This new experience streamlines access to Viva Insights value that is currently available across multiple apps and product experiences. This experience also makes it easier for leaders and delegates to find, access, and publish standard and advanced reports. This feature is rolling out in preview in June.

Leaders and analysts can soon measure the adoption and business impact of Copilot Studio agents in Viva Insights. This new report will illustrate how custom agents created in Copilot Studio are performing, with detailed metrics like number of agents created, employee sessions, satisfaction score, resolution rates, and business impact. Additionally, admins can upload business metrics to understand how agent usage impacts the business and relates to key metrics. This report is available in preview in May and is rolling out with business metrics upload in June.

Take a deeper look at Copilot Analytics by attending the upcoming webinar, “Measuring Impact with Analytics.” This Level 200 event on Thursday, May 22, is for IT Admins, and Adoption and Change management pros. Register to attend this webinar today.

SafeLinks integration in Copilot Chat

Microsoft 365 Copilot Chat users will no longer receive redacted hyperlinks in Copilot responses. This new integration with SafeLinks protects organizations from malicious links used in phishing and other attacks. Additionally, users with Microsoft Defender for Office 365 (MDO) licenses will have time-of-click URL protection for the hyperlinks included in its chat responses. Admins can see a URL protection report in the Microsoft Defender for Office 365 Security Center showing the relevant summary, trend views for threats detected, and actions taken on URL clicks. Or see the source of the originating URL clicks in the investigation and hunting experiences. These features rolled out in May. Learn more in this blog.

Agent management: Built for AI admins, designed for Scale

The Agents & connectors section of the Copilot Control System in Microsoft 365 admin center introduces a powerful framework for managing agents that extend Copilot’s capabilities across business workflows. This dedicated space for agent management empowers AI administrators with granular control over agent lifecycles. This feature rolled out in May.

Key features include:

Agent Inventory and metadata: View all agents—store, Microsoft, external, and shared—with rich metadata like capabilities, data sources, and custom actions.

Access control: Scope agent availability by user or group, block or delete agents, and manage ownerless agents to ensure continuity.

Lifecycle management: Transfer ownership, monitor usage, and enforce governance policies across the agent spectrum—from end-user-created to IT-managed agents.

Staged rollout: Control agent visibility and deployment pace across the organization.

Enhancements to billing and usage: Flexible, transparent, accountable

To support flexible deployment, CCS introduces pay-as-you-go (PAYG) group-level billing for agents in M365 Copilot Chat.

Soon, AI admins can:

Enable PAYG at the group level using Azure subscriptions.

Set budget thresholds and receive alerts for high usage.

Enforce soft or hard spending limits to prevent overages.

Monitor message consumption and cost trends in near real-time.

This model ensures that organizations only pay for what they use, while maintaining full visibility and control over agent usage expenses by departments and user groups. This feature is rolling out in May.

Message consumption report: Measure consumption, Manage costs

Rolling out now to public preview, the new Message consumption report supports agent management decisions by enabling AI admins to monitor billed messages, identify high-usage scenarios, and gain visibility into message consumption by agent, user, and user-agent pair. This feature is available in Preview in May, and rolling out in July.

Key insights include:

Total billed messages consumed for the selected time period

Cumulative and daily trend views

Message consumption details per user, agent, and user-agent pair

More Copilot Control System news

For more Copilot Control System security and governance news, check out these Microsoft Security blogs – Microsoft extends Zero Trust to secure the agentic workforce and Microsoft Security provides leading security and governance controls for AI apps and agents built with Azure AI Foundry and Copilot Studio.

User capabilities

Copilot pages inside OneNote

Users can now access Copilot Notebooks inside OneNote. Using Copilot Notebooks, users can pull together a wide range of content such as notes, documents, websites, meeting recordings, and more. The Notebook then grounds Copilot on the content in the notebook for the most relevant actions and insights—all while constantly scanning source material to update in real-time as the content is updated. Copilot Notebooks can even create an audio overview of content with two hosts that walk through the key points—a fun, flexible way to stay informed. Copilot Notebooks in OneNote is rolling out in June.

Search summarization with Copilot in Edge

Users with limited time and lots of tasks often use the shortcut key CTRL+F to quickly find and synthesize information in large bodies of text. Now when users use CTRL+F to find information on a page, they will see a prompt to have Copilot summarize how their search term is mentioned on the page. The summary will appear in the side pane alongside their original page content. This feature is rolling out in June.

Faster search and summarization with Copilot in Outlook

Soon, users can find things faster in Outlook with Copilot. Whether a user is searching for a teammate or a key word, Copilot will generate a summary of the inbox organized by themes and will also pull in information from other Microsoft 365 apps and documents that contain the search term. Users will be able to click on suggested follow-up actions, which will then generate another Copilot summary. They will also have the option to hand off the conversation to Copilot Chat. This feature is rolling out in June.

Users can now quickly summarize and review attachments they receive in Outlook. Copilot will summarize an attached Word, PowerPoint, or PDF file right in the reading pane, so users don’t have to switch apps. They can also ask follow up questions about the summaries. This feature rolled out in May.

Citations, voice and summaries with Copilot in Word

When users are drafting content that’s based on referenced sources, Copilot will include citations in the text it generates. This simplifies the experience for users to build documents by indicating references to information in the content. This feature is rolling out in June.

Users can have real-time, voice-powered conversations with Copilot to better understand documents. They can simply speak naturally to ask questions about the entire file or specific sections of text. They can explore ideas, clarify content, or even change the topic mid-conversation — all hands-free. This feature rolled out in Word on web and Windows in May, and is rolling out in PowerPoint on web and Windows only in the US in June.

Now users can access a dynamic document snapshot to more easily understand and refine a document. Options are available to choose the level of detail in the summary tab with a choice of short, medium, or detailed summary that works for long documents, now available on both web and Windows. Users can also access insights with key stats and discussion tabs now available on web. These features rolled out in May. Learn more.

Coaching with Copilot in Word supports users reviewing content for improvements that go beyond grammar and spelling. This helps to clarify ideas and will provide suggestions to improve the impact of a document with additions, organization, style, supporting information, and more. Users can select the text they would like coaching on, select the Copilot icon on the canvas, and then select “Get coaching” to see suggestions. If users like a suggestion, they can apply it with one click. Coaching rolled out in May and apply suggestions rolled out in May only in English in Word on the web.

Streamlined creation of presentations with Copilot in PowerPoint

Users can soon develop presentations with Copilot using a wider variety and depth of sources. Copilot will be able to reference up to five files, bringing more information into a presentation, faster. This feature is rolling out in June.

Copilot can now reference PDF files and TXT files, enabling users to leverage even more documents and resources to build the right presentation for their business. This feature rolled out in May.

Now presentations created with narrative builder from an existing file are automatically created in a new, separate file without altering the existing presentation. This feature rolled out in May.

Users looking for a quick start to a presentation can create one with Copilot from the PowerPoint backstage view. Users can access the backstage view from the File menu or start menu. This feature rolled out on Windows in May, and is rolling out to web in June.

Expanded functionality of Copilot Chat

Users can now easily automate their most frequent queries with just a few clicks. New options include setting up recurring prompts, tailoring prompts to a user’s workflow, and managing their prompts directly in Copilot Chat. This feature rolled out in May.

Now users can easily pick up where they left off with Copilot. A redesigned chat history experience provides a list that lets users quickly revisit past conversations. Users can search by keyword or browse through old chats grouped by date, making it easier to find exactly what they need. This feature rolled out in May.

Now users can reference SharePoint and OneDrive for Business folders directly in Copilot Chat. This helps to surface shared content more seamlessly, whether a user is pulling in a folder from a SharePoint site or accessing a shared directory. This feature rolled out in May.

Microsoft 365 Copilot Chat is now available to the GCC Moderate environment for users with an eligible Microsoft 365 or Office 365 subscription. This brings the enterprise-ready AI chat powered by models like GPT-4o, and robust IT controls and protections, including enterprise data protection. M365 Copilot Chat general availability for GCC rolled out in May.

We’re introducing more flexible and accessible ways to interact with Copilot Chat. Users can now verbally dictate their prompts into the prompt box and Copilot will listen – perfect for users who work hands-free or on the go. This feature is rolling out in June. Users can also ask Copilot to read aloud responses, transforming text into audio for users who prefer to listen or need auditory support. This feature is rolling out in May.

Did you know? The Microsoft 365 Roadmap is where you can get the latest updates on productivity apps and intelligent cloud services. Microsoft 365 Copilot release notes is where you can see the Microsoft 365 Copilot features that are generally available (Current Channel for Microsoft 365 apps) and specific to each platform. Check back regularly to see what features are in development, coming soon and generally available. Please note that the dates mentioned in this article are tentative and subject to change.

Public Preview: Deploy OSS Large Language Models with KAITO on AKS on Azure Local

[Launched] Generally Available: Vaulted Backups by Azure Backup for Azure Database for PostgreSQL – Flexible Server in all regions

Public Preview: Deploy OSS Large Language Models with KAITO on AKS on Azure Local

[Launched] Generally Available: Vaulted Backups by Azure Backup for Azure Database for PostgreSQL – Flexible Server in all regions

Copilot Control System:

User capabilities:

Copilot Control System

Microsoft Purview Data Loss Prevention in Microsoft 365 Copilot