Microsoft Office Adds New Free AI Features
▼ Summary
– Microsoft is adding free AI features to Outlook, Word, Excel, and PowerPoint in early 2026, which won’t require the paid Microsoft 365 Copilot license.
– Copilot Chat in Outlook will soon access content across an entire inbox, including calendars and meetings, to help triage emails and prepare for meetings without a paid license.
– Agent Mode, previously for paid subscribers, is coming to Word, Excel, and PowerPoint for all Microsoft 365 subscribers, enabling complex document and spreadsheet generation with prompts.
– In PowerPoint, Agent Mode can update decks with branded templates, create slides, rewrite text, and add images.
– Microsoft plans to preview these free AI additions by March 2026 and will launch a cheaper Microsoft 365 Copilot Business plan for small businesses at $21 per month.
Microsoft is expanding access to powerful artificial intelligence tools within its core Office applications, making advanced features available to a broader audience without the need for a premium subscription. A significant collection of new AI capabilities will be introduced for free to Outlook, Word, Excel, and PowerPoint users in early 2026, eliminating the requirement for the $30 per-user monthly Microsoft 365 Copilot license. This initiative builds upon the free Copilot Chat feature that was integrated into the software suite last September.
The enhancements are particularly focused on Outlook, where the Copilot Chat function is receiving a major upgrade. Instead of being confined to a single email thread, the AI will soon possess the ability to analyze an entire inbox. This includes scanning calendar appointments and meeting details, empowering users to efficiently manage their email flow and thoroughly prepare for upcoming events, all at no additional cost.
Another major development involves the rollout of Agent Mode to all Microsoft 365 subscribers for use in Word, Excel, and PowerPoint. This feature, which was previously exclusive to paying Copilot customers, enables the creation of sophisticated documents and intricate spreadsheets from simple text prompts. In Excel, users will even have the option to select between reasoning models developed by Anthropic and OpenAI, providing flexibility in how the AI processes tasks.
Within PowerPoint, Agent Mode proves equally versatile. It can be instructed to refresh an entire presentation by applying a company’s specific branding template. The AI can also generate new slides from scratch, rephrase and style text for better clarity, and automatically source and insert relevant images to create more compelling visuals.
The company has announced its target to release a preview of these complimentary AI additions for its Microsoft 365 user base by March 2026. This strategy of incorporating high-value AI features into standard business plans at no extra charge mirrors a similar approach taken earlier this year when Copilot was bundled into consumer-level Microsoft 365 plans.
![Image: A person using a laptop with Microsoft Office applications visible on the screen.]
In a related move for the business market, Microsoft recently consolidated its specialized sales, service, and finance Copilots into the main Microsoft 365 Copilot subscription. Looking forward, the tech giant is preparing to launch Microsoft 365 Copilot Business next month, a new offering tailored for small and midsize companies. Priced at a more accessible $21 per user each month, this plan will be available to organizations with fewer than 300 employees, providing them with enterprise-grade AI tools at a reduced cost.
(Source: The Verge)
