Microsoft combines AI tools in one app to challenge Anthropic

Microsoft has updated its Copilot app so that it now brings together several features that were previously scattered across different products. This comes as the software giant tries to regain momentum in the market for enterprise AI, where rival Anthropic has advanced.

The new app has three main features. "Home" combines regular chat with an AI agent called Cowork, which can carry out multi-step tasks on its own. "Code" makes it possible to build apps simply by describing what you want. And "Autopilot" lets users set up AI agents that run continuously in the background. In addition, the full Word, Excel and PowerPoint can now be used directly inside the Copilot app.

Microsoft is also changing its pricing model. Until now, companies have paid a fixed monthly subscription per employee for Copilot, typically around $30. Going forward, basic chat will still cost a fixed amount per user, while the heavier agent work in Cowork, Code and Autopilot will be billed based on usage, as is familiar from other AI services. Companies can set their own cap on how much may be used.

In short, an agent is an AI program that can plan and carry out several steps of a task on its own, instead of just answering one question at a time. That is precisely the type of tool that both Anthropic and OpenAI have successfully sold to businesses.

One of Microsoft's selling points is data security. According to Jacob Andreou, the executive responsible for Copilot, it is a problem for many companies if sensitive files have to be sent down to a local machine in a virtual computer, as happens with Anthropic's Claude Cowork, among others. Microsoft instead promises that data stays in the company's own cloud setup.

At the same time, Microsoft gives customers a free choice between different AI models in the app, so companies can choose between, for example, OpenAI's GPT, Anthropic's Claude or Microsoft's own models, depending on what works best in their tests.

What this means for you

If you use Copilot at work, you now get access to more powerful AI agents that can carry out tasks in the background on their own, and you can work directly in Word, Excel and PowerPoint from the same app. Note the new pricing: basic chat still costs a fixed amount, but agents are billed by usage, so talk to your IT department about setting a cap. If your company is concerned about data security, it is worth asking whether you can now use Copilot's agents without sending data outside your own cloud.