Microsoft 365 Copilot Gains New AI Capabilities with Anthropic’s Claude Cowork and Expanded Model Choices
Microsoft is significantly enhancing its Microsoft 365 Copilot AI assistant with new capabilities powered by Anthropic’s Claude Cowork and an expanded range of models, including next-generation OpenAI offerings. These updates, part of the “Wave 3” release, aim to move Copilot beyond basic task completion towards more complex, long-running workflows and enterprise-grade control and security.
Expanding Model Diversity
Microsoft is embracing a model-diverse approach to AI, allowing customers to choose between leading models from both OpenAI and Anthropic. Claude is now available in mainline chat within Copilot via the Frontier program, alongside the latest generation of OpenAI models. This flexibility ensures customers aren’t locked into a single AI provider and can leverage the strengths of different models for various tasks.
Introducing Copilot Cowork: AI for Complex Workflows
A key component of the update is Copilot Cowork, currently in research preview. Built in collaboration with Anthropic, Copilot Cowork is designed to handle multi-step tasks autonomously. Examples include analyzing Outlook calendars to propose schedule changes, preparing briefings for meetings, and conducting in-depth research. This capability is powered by the technology behind Anthropic’s Claude Cowork, bringing advanced agentic AI to the Microsoft 365 ecosystem. Copilot Cowork can autonomously take actions across Microsoft 365 apps.
Agent 365: Control and Governance for AI Agents
Recognizing the need for control and security as AI agents proliferate, Microsoft is launching Agent 365 on May 1. Priced at $15 per user, Agent 365 provides IT and security leaders with a central control plane to observe, govern, manage, and secure AI agents across the organization. IDC predicts 1.3 billion agents will be in circulation by 2028, and Microsoft reports that 80% of Fortune 500 companies are already using Microsoft agents.
Early adoption of Agent 365 has been strong, with tens of millions of agents already appearing in the Agent 365 Registry and tens of thousands of customers adopting it for secure agent governance. Microsoft is too using Agent 365 internally, with over 500,000 agents currently active, focused on areas like research, coding, sales intelligence, and HR self-service.
The Microsoft 365 E7: The Frontier Suite
To consolidate these advanced AI capabilities, Microsoft is introducing the Microsoft 365 E7: The Frontier Suite, available May 1 for $99 per user. E7 unifies Microsoft 365 E5, Microsoft 365 Copilot, and Agent 365 into a single solution, powered by Work IQ and integrated with existing Microsoft security features, including Microsoft Entra Suite and advanced Defender, Intune, and Purview capabilities.
Microsoft states that E7 is priced below purchasing these capabilities individually, offering a more cost-effective way to deploy enterprise AI at scale.
Strong Growth and Customer Adoption
Microsoft recently reported its strongest quarter yet for Copilot, with paid seats growing over 160% year-over-year and daily active usage increasing tenfold. The number of customers deploying Copilot at significant scale (more than 35,000 seats) has tripled year-over-year. Recent customer wins include Mercedes Benz, NASA, Fiserv, ING, and several universities and government organizations. 90 percent of the Fortune 500 now use Copilot.
These updates represent a significant step towards Microsoft’s vision of “Frontier Transformation,” aligning AI with human ambition to deliver real business outcomes and growth.