Microsoft CEO Satya Nadella unveiled the biggest Copilot update yet, rebranding the AI assistant as a "new OS for work." The overhaul merges four distinct tools—Autopilot, Code, Home, and Office—into a single application. Crucially, Word, Excel, and PowerPoint are now built directly into Copilot. A new "Today" feature proactively pulls relevant information from Microsoft 365 without requiring a user prompt.

Microsoft deliberately avoided labeling Copilot as part of Windows 11 this time, following a rough user reception to last year's "agentic OS" framing. The company previously explored a full Copilot-centered OS under the codename Project Aion. Key updates include Code expanding within Frontier by September, Autopilot entering private preview simultaneously, and Office inside Copilot reaching consumers soon.

Pricing shifts to usage-based billing for heavier agentic features like Cowork, Code, and Autopilot, defaulting to off. This update coincides with Microsoft retiring the Microsoft 365 Companion apps for Calendar, People, and Files, directing users toward Copilot instead.