Microsoft Introduces Free AI Enhancements for Office Apps

Microsoft announced a broad expansion of free artificial‑intelligence features across its core Office applications. The move adds new functionality to Outlook, Word, Excel, and PowerPoint without requiring the paid Microsoft 365 Copilot subscription.

Copilot Chat Gains Expanded Inbox Access

Copilot Chat, first released as a free feature, is being upgraded to view content across an entire Outlook inbox, including calendar entries and meetings. This broader view enables users to triage email, schedule appointments, and prepare for meetings using AI assistance, all without a paid Copilot license.

Agent Mode Becomes Available to All Microsoft 365 Subscribers

Agent Mode, originally launched for paid Microsoft 365 Copilot users, will now be offered to every Microsoft 365 subscriber. In Excel and Word, Agent Mode can generate complex spreadsheets and documents from simple prompts. Users will also be able to select between Anthropic and OpenAI reasoning models when working in Excel. In PowerPoint, the feature can update existing decks with a branded template, create new slides, rewrite and format text, and add images.

Preview Timeline and Business Pricing

Microsoft plans to preview these free AI additions to Microsoft 365 subscribers by March 2026. In addition, the company is launching Microsoft 365 Copilot Business at a price of $21 per month, lower than the $30 rate for the standard Copilot subscription. This Business plan targets organizations with fewer than 300 users.

Strategic Implications

By bundling advanced AI tools into its free Office offerings, Microsoft aims to increase the value of its Microsoft 365 subscriptions and make AI capabilities more accessible to a broader user base. The pricing adjustment for the Business plan also reflects an effort to attract small and midsize companies seeking AI‑enhanced productivity tools.

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