Microsoft transformed its AI assistant with major updates in Fall 2025. Copilot now includes Agent Mode for Excel, lets you build custom apps without coding, and introduces gaming features. These changes make Copilot more powerful for work and personal use.

This article covers everything new in the Fall 2025 Copilot update. You’ll learn what each feature does, how to use it, and whether it’s worth your time. We’ll also compare Copilot to other AI assistants so you can pick the right tool.

Here’s what you need to know:

What’s New in Microsoft Copilot Fall 2025

Microsoft added 12 major features to Copilot in Fall 2025. Here are the most important updates:

Agent Mode in Excel

Agent Mode lets Copilot work independently in Excel. You give it a task, and it completes the work without constant guidance. The AI handles data analysis, creates formulas, and builds reports on its own.

How it works:

Agent Mode saves hours on repetitive Excel tasks. It’s especially useful for financial reports, data cleaning, and complex calculations.

Custom App Builder

The new app builder lets you create working applications without writing code. You describe what you want, and Copilot builds it.

What you can build:

The app builder uses natural language processing. Tell Copilot “build an app to track customer orders,” and it creates a functional application with a database, user interface, and basic features.

Mico AI Character

Mico is Copilot’s new AI personality designed for casual interactions. Unlike the standard Copilot interface, Mico offers a more conversational experience with personality and humor.

Key features:

Gaming Mode

Copilot Gaming Mode helps PC gamers optimize performance. It monitors system resources, suggests settings, and provides in-game assistance.

Gaming features:

Why These Updates Matter

Microsoft is positioning Copilot as more than a chatbot. These updates turn it into a productivity platform that handles complete tasks.

The shift to Agent Mode represents a major change in AI assistant design. Instead of answering questions, Copilot now completes entire workflows. This matches how people actually work—they need results, not just information.

The app builder democratizes software development. Small businesses and teams can now create custom tools without hiring developers or learning to code.

Gaming Mode shows Microsoft is expanding beyond office productivity. The company wants Copilot to be useful throughout your day, not just during work hours.

How Agent Mode Changes Excel Work

Agent Mode transforms Excel from a manual tool into an automated workspace. Traditional Excel requires you to create every formula, format every cell, and build every chart yourself. Agent Mode handles these tasks automatically.

What Agent Mode Can Do

Data Analysis: Agent Mode examines your spreadsheet and identifies patterns. It spots outliers, calculates trends, and suggests insights you might miss.

Formula Creation: Describe what you need calculated, and Agent Mode writes the formula. It handles complex functions like VLOOKUP, INDEX-MATCH, and nested IF statements.

Report Building: Agent Mode creates complete reports with charts, tables, and summaries. It formats everything professionally and organizes information logically.

Data Cleaning: The AI finds and fixes errors, removes duplicates, and standardizes formatting. It handles tasks that normally take hours.

Limitations to Know

Agent Mode works best with structured data. If your spreadsheet is disorganized or uses unusual layouts, the AI might struggle.

The feature requires a Microsoft 365 subscription with Copilot access. Not all Excel versions support Agent Mode.

Always review Agent Mode’s work before using it for important decisions. The AI is powerful but can make mistakes with complex or ambiguous data.

Building Apps with Copilot: Step-by-Step Guide

The Copilot app builder lets anyone create functional applications. Here’s how to use it:

Step 1: Define Your App Purpose

Start with a clear description of what your app should do. Be specific about features and users.

Good example: “Build an app where team members can submit expense reports, attach receipts, and track approval status.”

Too vague: “Make an app for expenses.”

Step 2: Describe Key Features

Tell Copilot what features your app needs:

Step 3: Review the Design

Copilot creates an initial design and shows you a preview. Check that it includes all required features and makes sense for your users.

Step 4: Customize and Refine

Ask Copilot to modify the design:

Step 5: Test Your App

Copilot generates a working version you can test. Try all features and workflows to ensure everything works correctly.

Step 6: Deploy and Share

Once satisfied, deploy your app. Copilot provides a link you can share with users. The app includes basic hosting and database services.

Real-World Applications

Small Business Use Cases

Customer Management: Build an app to track customer information, communication history, and sales opportunities. Replace expensive CRM systems with a custom solution.

Project Tracking: Create a tool where team members update task status, share files, and communicate about projects. Better than scattered emails and messages.

Inventory Systems: Design an app to monitor stock levels, track orders, and alert when supplies run low. Especially useful for retail and manufacturing businesses.

Personal Productivity

Habit Tracking: Build an app to log daily habits, track progress, and see patterns over time.

Recipe Management: Create a system to store recipes, plan meals, and generate shopping lists.

Fitness Logging: Design an app to record workouts, track progress, and set goals.

Copilot vs ChatGPT vs Claude: Which AI Assistant Wins?

Each AI assistant has different strengths. Here’s how Copilot compares to competitors:

Microsoft Copilot Advantages

Deep Microsoft Integration: Works directly inside Word, Excel, PowerPoint, Outlook, and Teams. This integration saves time switching between apps.

Agent Mode: Can complete entire tasks independently. ChatGPT and Claude provide information but don’t execute work automatically in Microsoft apps.

App Building: Only Copilot offers no-code app creation. This feature is unique among major AI assistants.

Enterprise Features: Better security, compliance, and administrative controls for businesses.

ChatGPT Strengths

Conversation Quality: Often provides more detailed, nuanced responses. Better for complex reasoning and creative tasks.

Plugin Ecosystem: Access to thousands of third-party tools and services through plugins.

Code Generation: Generally produces cleaner, more reliable code for software development.

Claude Advantages

Long Context Understanding: Handles longer documents and conversations better. Can analyze entire books or large codebases.

Safety and Accuracy: Fewer errors and hallucinations. More likely to admit uncertainty.

Writing Quality: Produces more natural, engaging written content.

Which Should You Choose?

Choose Copilot if:

Choose ChatGPT if:

Choose Claude if:

Many people use multiple AI assistants for different tasks. Copilot for Microsoft work, ChatGPT for general questions, and Claude for writing projects.

Gaming Mode: Is It Worth Using?

Copilot Gaming Mode targets PC gamers who want better performance. Here’s what it actually does:

Performance Optimization

Gaming Mode monitors your system while you play. It tracks CPU usage, GPU load, RAM consumption, and temperature. When it detects issues, it suggests optimizations.

Automatic adjustments:

Game-Specific Recommendations

The AI learns optimal settings for popular games. It recommends graphics options that balance visual quality with frame rate.

For example, Gaming Mode might suggest: “Lower shadow quality to high instead of ultra. This will increase your frame rate by 15% with minimal visual difference.”

In-Game Assistance

Some games support Copilot integration for real-time help:

Limitations

Gaming Mode doesn’t magically improve hardware. It optimizes what you already have but can’t overcome system limitations.

The feature works best with newer games and hardware. Older games or systems might not benefit much.

Some competitive games restrict AI assistance. Check game rules before using Copilot during ranked play.

Tips for Getting the Most from Copilot

Be Specific with Requests

Vague requests produce mediocre results. Clear, detailed instructions help Copilot understand exactly what you need.

Weak: “Analyze this data” Strong: “Calculate monthly revenue trends, identify the top 5 products by profit margin, and create a bar chart showing quarterly comparison”

Break Complex Tasks into Steps

Agent Mode handles sophisticated work, but breaking tasks into steps improves accuracy.

Instead of “Create a complete financial dashboard,” try:

Review and Verify Results

Always check Copilot’s work, especially for important tasks. The AI is powerful but can make errors with:

Provide Context

Help Copilot understand your situation. Mention relevant details like:

Iterate and Improve

If the first result isn’t perfect, refine your request. Tell Copilot what to change rather than starting over.

Common Mistakes to Avoid

Expecting Perfect Results Immediately

Copilot is powerful but not magic. Complex tasks often require multiple iterations and adjustments.

Skipping the Review Process

Never use AI-generated work without reviewing it. Errors can have serious consequences, especially with financial data or important documents.

Using Agent Mode for Everything

Some tasks are faster to do manually. Agent Mode shines with repetitive work and complex analysis, but simple tasks might not benefit.

Ignoring Data Privacy

Be careful what data you share with Copilot. Sensitive information like passwords, personal data, or confidential business details should stay private.

Not Learning the Tools

Take time to understand what each feature does. Better knowledge leads to better results and more efficient work.

Advanced Features and Hidden Capabilities

Multi-Step Workflows

Copilot can chain multiple actions together. Create workflows that move through several apps and complete entire processes automatically.

Example workflow:

Custom Training

You can teach Copilot about your specific work processes and preferences. The AI learns from your feedback and adjusts to your style.

API Access

Developers can integrate Copilot into their own applications using Microsoft’s API. This lets you build custom tools powered by Copilot’s AI.

Voice Commands

Copilot supports voice input for hands-free operation. Useful when multitasking or when typing isn’t convenient.

Pricing and Availability

Microsoft Copilot access depends on your subscription:

Microsoft 365 Personal/Family: Basic Copilot features included. Agent Mode and app builder require upgrade.

Microsoft 365 Business: Full Copilot features available with add-on subscription ($30 per user monthly).

Enterprise Plans: Copilot included with advanced security and administrative controls.

Free Version: Limited Copilot features available at copilot.microsoft.com. No Agent Mode or app building.

Future Updates and Roadmap

Microsoft continues developing Copilot with more features planned:

Coming Soon:

The company invests heavily in AI development. Expect regular updates adding new capabilities and improving existing features.

Conclusion

Microsoft’s Fall 2025 Copilot update represents a major step forward for AI assistants. Agent Mode changes how we work with Excel, the app builder lets anyone create custom software, and gaming features expand Copilot’s usefulness beyond office work.

The updates make Copilot more competitive with ChatGPT and Claude. While each AI assistant has strengths, Copilot’s Microsoft integration and Agent Mode provide unique value for business users.

Start exploring these new features with simple tasks. Try Agent Mode for a routine Excel report. Build a basic app to solve a small problem. Use Gaming Mode to optimize your next gaming session.

As you learn what Copilot can do, you’ll find ways to save time and work more efficiently. The AI handles tedious tasks so you can focus on work that requires human judgment and creativity.

The future of productivity tools is here. Microsoft Copilot’s Fall 2025 update shows how AI assistants will continue evolving from simple chatbots into powerful work partners that handle complete tasks and workflows.