Microsoft updates Copilot app to add coding and agent tools

Microsoft is revamping its Copilot app for business users as it tries to strengthen its position in enterprise AI and compete more directly with Anthropic’s Claude. The company said the updated app combines coding features with tools for building agents that can handle tasks and communicate through Microsoft apps such as Teams and Outlook. The new version is aimed at corporate customers and is intended to encourage more Office 365 users to pay for advanced AI capabilities. Microsoft said it has separated some of these functions in the past, but is now moving toward a more unified product as the market shifts toward bundled AI tools. The company said pricing for the new Cowork, Code and Autopilot features will be based on usage rather than a flat subscription. Microsoft also acknowledged that enterprise adoption of AI agents has been difficult, even as demand grows for simpler tools that can support both productivity work and basic programming.