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Word, Excel and PowerPoint Inside the Copilot App: What Changes

On 9 October 2026 Microsoft started rolling out Office in Copilot: Word, Excel and PowerPoint files that open and can be edited right next to a Copilot conversation in the Microsoft Copilot app. For now it reaches only organisations enrolled in Microsoft's Frontier preview programme, which needs Copilot licences. At the same time Microsoft has renamed its products, so staff may see new names and a new web address. This guide explains what changed, who gets it, the settings an admin controls, and the file-permission tidy-up worth doing before more AI features arrive.

By IT Sorted teamReviewed 8 min readHow we write guides
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Key takeaways

  • Microsoft announced Office in Copilot on 25 Sep 2026 and began rolling it out to Frontier customers on 9 Oct 2026.
  • Files created in the Copilot app are saved to OneDrive and keep their permissions, labels and version history.
  • Microsoft 365 Copilot is now named Microsoft Copilot, and Copilot Chat is Microsoft Copilot Chat.
  • Copilot Chat stays free with Business Basic, Standard and Premium; Frontier needs Copilot licences.
  • Copilot only uses files a user can already open, so fix overshared folders before rolling out AI tools.
In this guide · 8 sections
  1. 01What Microsoft announced in September and October 2026
  2. 02New names and a new address for Copilot
  3. 03Who gets Office in Copilot, and when
  4. 04Admin controls worth knowing
  5. 05Check file permissions before staff ask Copilot about shared folders
  6. 06Should a small business change anything now?
  7. 07Do it yourself or get help?
  8. 08Frequently asked questions

Short answer

Office in Copilot lets users create and edit Word, Excel and PowerPoint files inside the Copilot app, beside the chat. It began rolling out on 9 October 2026 to Frontier customers only, which requires Copilot licences and an admin opt-in. Everyone else keeps using the normal Office apps for now.

What Microsoft announced in September and October 2026

Microsoft's 25 September 2026 post on the new Copilot introduced a redesigned Copilot app with a Home page where Chat and Cowork sit together, plus Office in Copilot. The detailed Office in Copilot announcement followed on 9 October 2026 and says it is "rolling out today for Frontier customers in Chat and Cowork".

ChangeWhat it means for staff
Word, Excel, PowerPoint open inside the Copilot appAsk Copilot for a draft, then edit the file beside the chat
Co-authoring, comments and sharing in the same viewColleagues can work on the file live, as in the normal apps
Library shows recent Office files, pages and AI imagesOne list of recent work across apps
Files saved to OneDriveSame permissions, version history and sensitivity labels
Model choice or AutoUsers can pick a model or let Copilot choose
Source: Microsoft Copilot Blog, 9 Oct 2026

Microsoft says you can switch to the standalone Word, Excel or PowerPoint app at any point without losing context. Nothing about the normal Office apps is being removed.

New names and a new address for Copilot

Microsoft's Copilot admin page now states that Microsoft 365 Copilot is named Microsoft Copilot, and Microsoft 365 Copilot Chat is named Microsoft Copilot Chat. The main web address for the updated app is copilot.cloud.microsoft, and old addresses redirect there.

Users may also see labels such as Copilot Chat (Basic), Copilot (Basic) or Copilot (Premium), depending on their licence. That is useful to explain in advance, because staff will see the same app but different features and will ask why a colleague has more buttons.

Who gets Office in Copilot, and when

For now, only organisations in the Frontier programme. Microsoft's Frontier admin guide describes Frontier as opt-in preview access to features before general availability, managed at the tenant level, with features that are preview and subject to change.

Your setupOffice in Copilot todayWhat you have instead
Business Basic, Standard or Premium, no Copilot licenceNoFree Microsoft Copilot Chat; normal Office apps
Copilot licence, not enrolled in FrontierNot yet; no general date announcedCopilot inside Word, Excel, PowerPoint, Outlook, Teams
Copilot licence and Frontier enabled by adminRolling out since 9 Oct 2026Preview features, which can change

Copilot Chat itself stays included at no extra cost for users signed in with a work account on qualifying plans, which Microsoft lists as including Business Premium, Business Standard and Business Basic. If you are still deciding whether the free chat is enough, our comparison of Copilot Chat free vs ChatGPT free at work covers the data protection differences.

Admin controls worth knowing

Most small businesses do not need to do anything for Office in Copilot today. If you do want early access, or want to keep things tidy as features arrive, these are the controls Microsoft documents.

  1. Decide whether to join Frontier

    In the Microsoft 365 admin center, search the Copilot settings for "Frontier". You need the AI Admin, Security Admin or Office Apps Admin role, and users need the relevant Copilot licences. Microsoft says features can take about three hours to appear.

  2. Limit Frontier to a pilot group

    Frontier lets you choose which users get preview features. Start with one or two people who are comfortable with change, not the whole company.

  3. Set the web search policy

    The Allow web search in Copilot policy, in Cloud Policy or the Copilot Control System page, controls whether Copilot sends web queries to Bing. If you do not configure it, web search is on by default.

  4. Block personal accounts on work devices

    Use Tenant Restrictions v2 so staff cannot paste company files into a personal Copilot session.

  5. Watch usage-based features

    Cowork requires a Copilot licence and admin-enabled usage-based billing, charged per task. Set budgets before turning it on.

Microsoft says it does not support managing Copilot by blocking domains, URLs or IP addresses at the network level, because Copilot is built into the Office apps and blocking can break them. Use the admin center settings instead.

Check file permissions before staff ask Copilot about shared folders

Copilot only shows a user files and data that person can already open. That sounds safe, but in many small businesses "can already open" is far wider than anyone intended: a folder shared with everyone in the company years ago, or an organisation-wide link to a payroll spreadsheet. Before AI tools, nobody found those files. With Copilot, a simple question can surface them.

Permission tidy-up before wider Copilot use

Our guide to Copilot oversharing in SharePoint walks through the reports and settings in detail. Because files created in the Copilot app go to OneDrive with the same sharing permissions, the clean-up applies to them as well.

Should a small business change anything now?

For most small offices on Business Basic, Standard or Premium without Copilot licences, nothing changes yet beyond the new names. Staff keep using Word, Excel and PowerPoint as before, with free Copilot Chat available.

Worth trying if

  • Fewer steps from a chat draft to a finished file
  • Files keep OneDrive permissions, version history and labels
  • Co-authoring works the same as in the normal apps

Wait if

  • Frontier only, so preview features may change or break
  • Needs Copilot licences; Cowork adds usage-based charges
  • Makes overshared files easier to find

If you are weighing a plan upgrade at the same time, our review of whether Microsoft 365 Business Premium is worth it covers the security features, such as sensitivity labels, that make AI rollouts safer.

Do it yourself or get help?

A tenant with a handful of users and a few SharePoint sites can do the permission review in an afternoon. It takes longer when sharing has grown over years, guests were never removed, or nobody is sure which settings are on.

Our Microsoft 365 / Google Security Lockdown (S$590) reviews sharing, guest access, MFA and admin settings so AI tools only see what they should. IT Sorted is a Singapore-based team of developers with over 10 years of experience. You pay upfront, send your brief in writing through the site chat or contact form, and follow progress on your order page.

Frequently asked questions

It is Word, Excel and PowerPoint built into the Microsoft Copilot app. You can ask Copilot to draft a document, spreadsheet or presentation, and the file opens beside the conversation for direct editing, comments and co-authoring. Files are stored in OneDrive. Microsoft began rolling it out on 9 October 2026 to customers in its Frontier preview programme.

Right now, yes. Office in Copilot is rolling out through the Frontier programme, and Microsoft's Frontier documentation says users need licences for the products being previewed, which means Copilot licences. Users with only Business Basic, Standard or Premium still get free Microsoft Copilot Chat and the normal Office apps.

Microsoft renamed Microsoft 365 Copilot to Microsoft Copilot, and Microsoft 365 Copilot Chat to Microsoft Copilot Chat. The main web address for the app is copilot.cloud.microsoft, and older addresses redirect automatically. Microsoft says the security, compliance and privacy controls stay unchanged. Users may see labels such as Basic or Premium depending on their licence.

No. Microsoft says Copilot only uses data that the signed-in user already has permission to open. The risk is files that were shared too widely in the past, such as folders open to everyone in the company. Copilot makes those easier to find, so review SharePoint and OneDrive sharing before rolling out AI tools widely.

Microsoft recommends using admin center settings rather than blocking Copilot domains or IP addresses on the network, which it says can break Office apps. You can control pinning, web search, Frontier access and personal-account sign-in through the Microsoft 365 admin center, Cloud Policy and Tenant Restrictions v2.

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