Take a tour of the Microsoft 365 Copilot App

Key insights

• Microsoft 365 Copilot Wave 2 introduces advanced features for human-agent collaboration, including an updated Copilot app that uses more powerful AI models, adaptive memory, and reasoning agents to support work tasks and decision-making.


• The new Agent Store allows users to easily find, pin, and use a variety of prebuilt and partner agents—such as Researcher (for complex research) and Analyst (for data insights)—as well as custom agents tailored to company needs.


• Copilot Search, powered by AI, provides fast and context-aware results from across both first- and third-party apps (like Google Drive, Slack, Jira), helping users quickly locate information within their organization’s data ecosystem.


• The enhanced Create experience, using OpenAI’s GPT‑4o image generation, empowers everyone to produce high-quality marketing materials, branded images, social assets, videos from PowerPoint presentations, newsletters, and more with ease.


• Copilot Notebooks integrate notes, documents, web content, meeting recordings, and other resources into one place. The feature offers real-time insights and can generate podcast-style audio summaries of key points for quick updates.


• Skills agent, supported by the People Skills data layer, helps leaders form dynamic teams based on skills needed for projects. It also enables employees to connect with colleagues who have specific expertise. Additionally, IT administrators gain new tools in Copilot Studio for managing agent deployment and monitoring impact through analytics.

Microsoft 365 Copilot Wave 2: Ushering in a New Era of Productivity

The latest Microsoft 365 Copilot Wave 2 release, as showcased in a recent YouTube video by Microsoft, marks a significant leap forward in AI-powered productivity tools. The update introduces a range of new features and capabilities designed to enhance human-agent collaboration, making it easier than ever for organizations to leverage artificial intelligence in their daily workflows. With this spring release, Microsoft 365 Copilot evolves from a helpful assistant into a central hub for advanced agents, adaptive memory, and deep reasoning capabilities.

Notably, the update aligns with findings from the 2025 Work Trend Index, which highlights the rise of the "Frontier Firm." These are organizations built around intelligence on demand, seamless human-agent teams, and a new leadership role: the agent boss. This shift underscores the changing nature of work and the increasing importance of integrating AI with human expertise.

Advanced Agents and the Agent Store

A standout feature of this update is the introduction of the Agent Store, a centralized marketplace where users can discover, pin, and utilize a variety of prebuilt and partner agents. Among the first agents available are Researcher and Analyst, both powered by OpenAI’s advanced reasoning models. Researcher assists with complex, multi-step research tasks, delivering high-quality insights, while Analyst transforms raw data into actionable insights, mimicking the thought process of a skilled data scientist.

This approach offers clear benefits in terms of efficiency and accessibility, but it also raises questions about balancing automation with human oversight. While these agents can accelerate tasks and improve accuracy, organizations must ensure that critical decisions still involve human judgment, especially in sensitive or nuanced scenarios.

AI-Powered Search and Personalization

Another major advancement is Copilot Search, an AI-driven enterprise search tool that delivers rich, context-aware answers from across an organization’s apps and data sources. By connecting with both first- and third-party platforms—such as ServiceNow, Google Drive, Slack, and Jira—Copilot Search helps users find relevant information quickly, regardless of where it resides.

Additionally, Copilot now offers enhanced memory and personalization features. It learns from your interactions, job profile, and custom instructions to deliver a more tailored experience. Importantly, privacy remains a priority; users can control what Copilot remembers, especially when handling sensitive information. This increased personalization fosters efficiency but also introduces the challenge of ensuring data security and user trust.

Creative Tools and Notebooks for Dynamic Workflows

The new Create experience leverages OpenAI’s GPT-4o image generation technology, empowering users to produce and modify brand-aligned images, marketing materials, and other content with ease. This democratizes design skills, enabling employees across various roles to contribute to creative projects without specialized training.

Moreover, Copilot Notebooks allow users to consolidate notes, documents, websites, meeting recordings, and more into a single workspace. Copilot then provides relevant actions and insights, constantly updating as new information is added. For added engagement, Notebooks can even generate podcast-style audio summaries of content, providing a flexible way for team members to stay informed.

Empowering Leadership and Customization

As organizations transition from traditional org charts to more dynamic, project-based structures, the Skills agent becomes essential. Powered by the People Skills data layer, it enables leaders to form skill-based teams efficiently and helps employees connect with colleagues who possess the expertise they need. This fosters collaboration and agility but also requires thoughtful management to avoid skill silos or over-reliance on automated matching.

On the customization front, Copilot Studio gives IT administrators the tools to create, manage, and measure custom agents tailored to their business needs. New features in the Copilot Control System—such as Apps and Agents in Data Security Posture Management and Agent Management—provide granular control over data access and agent deployment. While these tools increase flexibility and oversight, they also necessitate robust governance to maintain compliance and prevent misuse.

Looking Ahead: The Frontier Firm and the Future of Work

The innovations in Microsoft 365 Copilot Wave 2, rolling out to customers starting in late May, represent a major step toward realizing the vision of the Frontier Firm. By integrating advanced AI, personalized assistance, and dynamic team-building tools, Microsoft is setting the stage for workplaces where humans and agents collaborate seamlessly.

However, as organizations embrace these capabilities, they must balance the drive for efficiency with the need for security, oversight, and human-centric decision-making. Navigating these tradeoffs will be crucial as the future of work continues to evolve in the age of AI.

Keywords

Microsoft 365 Copilot productivity AI tools Microsoft Office automation work efficiency digital assistant business software integration smart workplace solutions