Microsoft 365 Copilot has a new set of features to try out. The latest additions help locate content, create images, and gather information from across Microsoft Graph.
The new features arrive as part of the Microsoft 365 Copilot Wave 2 Spring updates. Many of the capabilities are available now, though some will start rolling out in the near future.
Microsoft announced the Copilot Wave 2 updates earlier this year, so we already knew what was on the way. This week's news is that many of the features included in that wave are now available. Microsoft detailed the features at Build 2025.
Microsoft 365 Copilot Wave 2 includes:
- An updated Microsoft 365 Copilot app that's been optimized for collaboration between humans and AI agents.
- A Create experience that utilizes OpenAI's GPT-4o for image generation.
- Copilot Notebooks can provide insights and suggested actions based on data.
- Copilot Search and Copilot Memory.
- Researcher and Analyst reasoning agents.
Microsoft detailed the wave of updates in a Microsoft Mechanics blog post and shared a video showcasing the improvements.
Updated Microsoft 365 Copilot app
The Microsoft 365 Copilot app has an improved interface that is optimized for collaborating with AI agents. Search, chat, and agents now live on the left side of the app, as do Notebooks and the new Create experience.
The chat section of Microsoft 365 Copilot has a new shortcut to bring in content from various sources, including files and interactions with other people.
Microsoft 365 Copilot: Image generation powered by GPT-4o
Microsoft's AI team must have been particularly excited about image generation powered by GPT-4o because the company shipped the feature late last week. It's probably a bit late to jump on the Ghibli trend, but Copilot will support GPT-4o when the next viral meme format hits.
The updated image generation feature refines previous images more effectively and creates more detailed content.
To demonstrate the new image generation capabilities, the Microsoft Copilot X account shared a thread in which an image was refined with more details using GPT-4o technology.
pic.twitter.com/HXPWOG0YOQMay 15, 2025
The thread illustrates how 4o image generation can build on previous images. One of the more frustrating parts of AI-powered image generation is that models struggle to have elements of an image persist. The integration of GPT-4o should minimize that issue.
That being said, the thread also shows some of the limits of AI-powered image generation. Even with GPT-4o, Microsoft 365 Copilot seems to add a yellow filter that gets progressively more noticeable in each new image.
Other elements from the original image change upon refinement as well, such as the headlines of the taxi in the background shifting from circles to squished ovals. The Statue of Liberty appears in the final image in front of the taxi, but without the full prompt used, it's impossible to tell if the addition of the monument was intentional.
AI improves over time, and GPT-4o does seem better at building on previous images. Though it may be a while before AI can overcome the haunting trend of converting portraits into abstract art.
Copilot Notebooks
Notebooks bring together relevant information from several sources, including chats with Copilot. You can chat with Copilot about a specific Notebook and the tool will respond based on the specific contents of that Notebook.
Microsoft 365 Copilot can also create an audio overview of a notebook.
Copilot Search and Copilot Memory
Copilot Search and Copilot Memory will begin rolling out in June 2025.
The new Copilot Search experience brings in information across Microsoft Graph. Searching is optimized to find specific pieces of content.
A key advantage of the new Search experience is that it is contextual. Rather than just searching for keywords, the tool can find relevant content based on natural language.
With its new Memory feature, Copilot will create a personal profile and be able to make content tailored to you specifically. If you have the feature enabled, Copilot will remember details from previous conversations.
Those details will be used to save time, since the AI tool will send proactive messages based on previous conversations. The suggestions should also be better since they're based on what you've shared with Copilot.
Specialized agents in Microsoft 365 Copilot
Analyst and Researcher are specialized agents available through Microsoft 365 Copilot. Microsoft refers to both as "first-of-their-kind reasoning agents for work."
Generally speaking, AI agents can automate tasks and rely on the data provided to them. Agents range from simple prompt-and-response tools to being able to replace entire workflows.
Microsoft 365 Copilot has an agent store that includes Microsoft-made agents, agents from third-party developers, and custom agents. You can also create agents within Microsoft 365 Copilot.
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