Today Microsoft is rolling out some major updates that truly reshape how AI shows up in everyday work. Here’s what’s new:
- Wave 3 of Microsoft 365 Copilot
- More model diversity, with Claude and next‑gen OpenAI models available starting today
- Agent 365 becoming generally available on May 1 at $15 per user
- Microsoft 365 E7: The Frontier Suite, also coming May 1, priced at $99 per user
Wave 3 is honestly the biggest shift I’ve seen in Copilot so far. It doesn’t feel like “AI that helps you write or summarize” anymore, it feels like Microsoft is moving Copilot into a true agent that can actually do work for you, not just respond to prompts. And this changes everything in how we’ll use Microsoft 365.
Frontier Transformation – What It Really Means
Microsoft is talking about “Frontier Transformation” but at its core, it’s actually simple: AI should help people achieve their highest goals — not just make processes a little faster.
Copilot Cowork – The game changer
The main highlight is Copilot Cowork, built together with Anthropic (the team behind Claude). What I love about it is that it can finally take on a whole piece of work, break it into steps, run those steps in Word, Excel, PowerPoint, Outlook, and keep you updated as it goes.
Not instantly, but over minutes or even hours.
So instead of: “Write a one‑page summary”
It becomes: “Prepare the full report, build the Excel analysis, create the PowerPoint, and draft the email to the team.”
And it actually moves this work forward across the apps we already use daily.
Edit with Copilot – In-app agentic editing
Another thing I like is that “Agent Mode” is gone.
It’s now simply called Edit with Copilot, and it works right inside the apps:
- Word: turns your messy draft into something polished
- Excel: actually builds formulas and charts (not just suggests)
- PowerPoint: creates slides using your real templates and brand
- Outlook: drafts or refines emails in the compose window
No more copy-paste. No more losing sensitivity labels. Everything stays governed and saved where it should be.
Work IQ – Copilot that “knows how you work”
Wave 3 also introduces Work IQ, which gives Copilot a deeper understanding of:
- Your organization’s content
- Your collaboration patterns
- The apps and workflows you use
- The context behind your requests
This is what helps Copilot choose the right model (Claude or OpenAI) depending on the task.
Multi‑model Copilot (Claude + OpenAI)
For the first time, Copilot becomes model-agnostic.
You’ll be able to pick or automatically use:
- Anthropic Claude (via the Frontier program)
- OpenAI models
A model selector is coming to Copilot Chat so you can choose which model works best, depending on the task.
New licensing tier: Microsoft 365 E7 “The Frontier Suite”
Microsoft also launched a brand new enterprise tier — their first in 11 years:
Microsoft 365 E7 (The Frontier Suite)
It bundles:
- M365 E5
- Copilot
- Agent 365
- Additional security + analytics tools
This shows how seriously Microsoft is betting on agentic AI becoming the new standard.
Rollout timeline
Wave 3 features are:
- Already in research preview for selected customers
- Expanding via the Frontier Program starting March 2026
With Wave 3, Agent 365, Work IQ, and the new E7 suite, AI is shifting from early experimentation to real, scalable, enterprise-wide value. Microsoft is not only imagining what AI could be it’s giving organizations the tools to build that future right now.
You can read more in the official Microsoft article here.