Microsoft 365 Copilot introduced eight new features in August 2026, as highlighted by Mike Tholfsen, to enhance productivity across Word, Excel and PowerPoint. The updates integrate advanced AI models, including OpenAI’s GPT 5.6 and Anthropic’s Claude, which are dynamically selected based on the task. GPT 5.6 excels in generating detailed and creative content, such as comprehensive reports or marketing materials, while Claude is ideal for concise outputs like summaries or technical documentation. Users can request Copilot to draft a sales presentation with visuals and charts directly in PowerPoint. The new Cowork integration allows teams to create and manage custom workflows securely, reducing manual effort. Copilot Notebooks are now available to all users, offering a platform for brainstorming, drafting and organizing information across educational and business contexts. The enhanced Prompt Lab features a richer template library to optimize tasks like email drafting and project planning. Additional improvements include expanded file type support, AI-powered editing tools and advanced infographic creation to simplify workflows and improve visual communication. These features aim to save time and improve efficiency in both professional and educational settings.