Kesslernity · M365 Copilot Field Guide

Copilot in Word, PowerPoint & Excel

In-app Copilot reads the open document automatically. No @ needed.
Copilot inside Office apps behaves differently from Copilot Chat. It has direct access to your open document and can draft, rewrite, analyse, and transform content in place — without referencing files externally.
Status Generally Available
UPDATED August 14, 2026
Licence M365 Copilot paid add-on
Access Copilot button in app ribbon
PUBLISHED BY kesslernity.com
Licence required before you start

Copilot in Word, PowerPoint, and Excel requires the Microsoft 365 Copilot paid add-on. It appears as the Copilot button in the app ribbon or via the floating Copilot icon in Word. Confirm you see the button — if it's missing, your licence may not be assigned. Contact your Microsoft admin or check your organisation's licence portal.

Seat threshold applies
In tenants with more than 2,000 M365 seats, the Copilot Chat sidebar in Word, Excel, PowerPoint, and OneNote requires a paid M365 Copilot licence. Without it, the sidebar shows an upgrade prompt. Smaller tenants (<2,000 seats) see a reduced "standard access" version with upgrade prompts. Users with the paid add-on are unaffected. (MC1253858)
What's new — June to August 2026
The Work IQ APIs — M365 Copilot's context layer (Data / Memory / Inference) — reached GA on June 16, 2026, and Copilot Cowork went GA the same day on usage-based Copilot Credits ($0.01/credit pay-as-you-go). This does not change how you use Copilot in Word, PowerPoint, and Excel: in-app Copilot remains covered by your existing M365 Copilot licence and is not separately metered. Copilot Credits apply only to custom or third-party agents (Copilot Studio, Microsoft Foundry, raw Work IQ APIs) that ground in your M365 data via Work IQ.

July 2026 additions: OpenAI's GPT-5.6 family is now available across Word, Excel, PowerPoint, Copilot Chat, and Cowork, tuned by OpenAI and Microsoft as the preferred model for M365 Copilot knowledge work (Rolling Out, per the Microsoft 365 Copilot blog). Anthropic's Claude Sonnet 5 is rolling out inside Microsoft 365 Copilot (including Copilot Cowork and Copilot in PowerPoint) as a new frontier model for agentic multi-step work. Copilot in Word gains a model choice picker (rewriting, summarising, restructuring), comment-based edits that read reviewer comments and apply the changes, and an agentic experience on iOS. Copilot in Excel gains reusable Skills, personalisation preferences across workbooks, and workbook .Rules sheets. Copilot in PowerPoint adds a Brand Kit Picker, the ability to reference SharePoint libraries and OneDrive folders, and MAI-Image-2-Efficient for faster image generation (GA). Agent Mode in PowerPoint can now use Work IQ to gather files, meetings, and emails automatically, and can reference a Teams meeting or chat when creating a presentation (GA, Roadmap IDs 555874, 555885, 555884, 555883). Copilot Notebooks now generate structured Excel, Word, and PowerPoint files from notebook content (GA), and cited Word, Excel, PowerPoint, and PDF files now open inside Copilot Chat instead of an external tab (GA, Roadmap 548641). Audio Overview in Word on the web adds real-time voice interaction (GA, Roadmap 523206). A tenant-wide Prompt Gallery reached GA (Roadmap 486695) for publishing curated prompts.

Mid-July 2026 addition: agents built with the Model Context Protocol (MCP) reached general availability in Word, Excel, PowerPoint, Outlook, and Catalyst on July 15, 2026, accessed through the Copilot pane. Previously these agents were not integrated into the Office apps; the change removes the app-switching step. Rollout is gradual under Microsoft's safe deployment model, so availability may vary while it completes.

Late July 2026: PowerPoint Copilot is adding support for personal, user-defined custom skills stored in OneDrive across web, desktop, and Mac. Users upload a skill folder containing a SKILL.md file to a designated OneDrive location, and those skills then appear in the Copilot Skills menu inside PowerPoint. A consistent Copilot entry point is also coming to classic Outlook, matching the entry point across the other apps (Roadmap 567007, in development).

Early August 2026: Microsoft's July roundup lists these as rolled out. In Excel, a brand kit skill that applies Brand Center colours, fonts, and logo. In PowerPoint, branded assets from the Microsoft 365 Brand kit, the ability to write, reply to, and resolve comments, and iOS and iPad capabilities covering multi-step planning, implicit and explicit grounding, and background work; listed for August in PowerPoint are the OneDrive custom skills noted above and assigning tasks and notifying stakeholders in comments. Two roadmap items reached GA: voice Q&A during Read Aloud in Word, so a user can ask what a passage means or for a section summary without pausing playback (Roadmap 523205), and referencing an attached deck's style in Agent Mode in PowerPoint, so a new presentation picks up the theme and styles of the file you point at (Roadmap 555878). The Word, Excel, and PowerPoint agents can now be mentioned directly in a Copilot Chat prompt, which means files get created without leaving Chat. One cancellation: Microsoft has decided not to move forward with complex web search with Copilot in Excel (Roadmap 566872, cancelled 5 August 2026), so drop it from any plan that counted on Excel reaching the open web.

Mid-August 2026: Microsoft's 11 August release-notes batch covers work released between 28 July and 11 August with no per-entry dates, so every item in it carries the same date, and its general availability label means released to Current Channel and still rolling out inside a tenant rather than fully deployed everywhere. In Word, Anthropic models can be selected when editing with Copilot, where only OpenAI models were available before (GA). In PowerPoint, Copilot can draw on enterprise image assets held in an Adobe Experience Manager library connected to Microsoft 365 when creating a presentation in Edit mode, instead of only public or user-uploaded images (GA); a presentation can be started directly from the PowerPoint web app home screen, which Microsoft states applies to Microsoft 365 Copilot Basic and Premium (GA); and Copilot can reference web sources while creating a deck, which live web information could not be used for there before (GA). In development, reviewing PDFs from the Copilot context menu in OneDrive for iOS will explain, summarise, translate or answer a question about selected text, matching the desktop behaviour (Roadmap 568790, October 2026 target). Two cancellations land in the same week. Microsoft has decided not to move forward with the =COPILOT worksheet function in Excel, which would have let a formula generate, classify and summarise text and data in place against a January 2027 target date (Roadmap 499658, cancelled 13 August 2026), and it has dropped improved long-file navigation using document structure, which was to give more accurate answers and clearer citations on long and complex files (Roadmap 559614, cancelled 12 August 2026). With the Create experience item covered in the visual creator guide, that is three roadmap withdrawals inside one seven-day window.

See the licensing/comparison guide for the full cost picture.
At a glance — what makes in-app Copilot different
No @ required
Copilot reads your open document automatically.
You do not need to reference it.
Direct editing access
Copilot can insert, rewrite, and transform
content inside the document in place.
Each app is different
Word = text. PowerPoint = slides.
Excel = data and formulas. Different tools, different prompts.
W
Word
Draft · Rewrite · Summarise · Transform · Coach
Open Copilot panel → ribbon
What it can do
  • Draft from scratch
    Generate a first draft from a prompt or an outline. Copilot writes into the document.
  • Rewrite selected text
    Select a passage and ask Copilot to change tone, length, reading level, or structure.
  • Summarise the document
    Generate an executive summary or key-points list from the full document.
  • Coach (Writing Assistance)
    Get feedback on clarity, conciseness, tone, and vocabulary for selected text.
  • Transform format
    Convert prose to bullets, bullets to prose, unstructured notes to a table.
Prompts to try
  • Summarise this document in 5 bullet points for an executive who hasn't read the background."
  • Rewrite the executive summary to be more direct. Cut to under 100 words."
  • Convert the risks section to a table with columns: risk, owner, mitigation."
  • Draft a conclusion paragraph that summarises the three recommendations."
  • Check the tone of this email draft. Flag anything that sounds defensive or ambiguous."
Note: Copilot in Word also reads other documents you reference. Type @ inside the Copilot panel to bring in a second file as context — useful for comparing against a template or previous version.
P
PowerPoint
Create · Add slides · Rewrite · Summarise · Organise
Copilot button → ribbon
What it can do
  • Create a presentation
    Generate slides from a prompt, a topic outline, or a Word document. Includes speaker notes.
  • Add a slide
    Describe the slide you need and Copilot inserts it in the right position.
  • Rewrite slide text
    Shorten, simplify, or reframe the text on the current slide or across the deck.
  • Summarise the deck
    Generate a one-paragraph or bullet-point summary of the full presentation.
  • Organise into sections
    Restructure slide order and group related content into logical sections.
Prompts to try
  • Create a 10-slide presentation on the Q2 project status. Include speaker notes. Use the data in @Q2-Status-Report.docx."
  • Add a slide after slide 4 that shows the top 3 risks and their owners."
  • Rewrite the slide titles to be action-oriented and under 8 words each."
  • Summarise this deck in 3 bullet points I can use as a verbal intro."
  • Shorten the text on every slide so each has no more than 4 bullet points."
Note: Creating from a Word document gives more structured output. Prepare a brief Word outline first for complex decks — Copilot will follow it more accurately than a free-form prompt alone.
X
Excel
Analyse · Formulas · Insights · Highlight · Python (advanced)
Copilot button → ribbon
What it can do
  • Analyse data
    Ask questions about the spreadsheet in natural language. Copilot reads the open sheet.
  • Write and explain formulas
    Describe what you want to calculate — Copilot writes the formula and explains it.
  • Highlight and filter
    Ask Copilot to highlight rows, apply conditional formatting, or filter based on criteria.
  • Surface insights
    Identify trends, outliers, and patterns across the data. Generates a natural language summary.
  • Python in Excel (advanced)
    Generate Python code for advanced analysis, modelling, and visualisation. Requires Python in Excel feature enabled.
Prompts to try
  • Which rows have actual spend more than 10% over budget? Highlight them in red."
  • Write a formula that calculates the weighted average of column D using column E as weights."
  • What are the top 5 vendors by total spend this quarter?"
  • Show me a trend of monthly costs from January to April. Which month had the highest variance?"
  • Add a column that classifies each row as On Track, At Risk, or Over Budget based on the variance column."
Note: Copilot in Excel works best on data formatted as a table (Insert → Table). Unformatted ranges may produce incomplete results. Column headers should be clear and in the first row.

Agent Mode in Excel (GA): Select a model (including Claude via Copilot) and ask it to perform multi-step actions directly on your spreadsheet — restructure data, apply formatting rules, create sheets, run analysis chains. Access via the Copilot panel model picker (if enabled in your tenant).
In-app Copilot vs Copilot Chat — key differences
Use Chat for live M365 data · Use in-app for document-level work
CapabilityCopilot ChatWord / PPT / Excel
Access to open documentNo — use @file to referenceYes — reads automatically
Direct editing / insertionNo — outputs text onlyYes — inserts into document
Access to email and Teams dataYes — live M365 dataNo — open file only
Multi-document queriesYes — @ multiple filesLimited — @ one additional file in panel
Scheduled promptsYesNo
Formula generationNoYes — Excel only
Slide creationNoYes — PowerPoint only
After this guide

Every guide in this set is free, and stays free. What they do not cover is the rollout itself: the operating model, the 90-day plan with owners and decision gates, the governance checklist, and the ROI case for a finance team that has already said no once.

That is the M365 Copilot Deployment Kit. $97, one payment, no subscription.

See what is in the Deployment Kit →