In July 2026, Microsoft shipped 40-plus updates to Copilot across its 365 suite, including the general availability of a new mode called Copilot Cowork. Anthropic’s Claude model is now available as an option within Copilot Chat, allowing enterprise users to switch between Microsoft’s offerings and Claude for tasks like document analysis, research, and structured writing. Copilot Cowork supports multiple AI models, new plugins, updated skill management, Microsoft Purview integration, and branded templates. The skill management overhaul organizes skills by task type, and Purview integration brings data governance and compliance checking into Copilot. Microsoft redesigned the layout with reorganized menus and a new Tasks tab, which lets users monitor activities and progress across Copilot interactions. Copilot now understands document structure—sections, pages, headings—before generating answers, returning citations pointing to specific sections. Microsoft introduced watermarking for AI-generated videos and audio in Copilot, which is visible and persistent. Microsoft is resuming automatic installation of the Copilot app on eligible Windows devices with commercial Microsoft 365 apps between mid-June and mid-July, and administrators can opt out.