What’s New in Microsoft 365 Copilot – July 2025

Microsoft 365 Copilot just got a massive upgrade! If you’re an IT admin, business leader, or tech professional, this July 2025 update is packed with features that’ll make your work life easier and more secure.

Microsoft’s monthly Copilot updates keep rolling out improvements that matter. This month’s release focuses on three key areas: giving admins more control, boosting security and compliance, and making Copilot smarter across all your favourite apps.

Official Link: What’s new in Microsoft 365 Copilot

Copilot Control Centre: Admin Power Gets an Upgrade

New Usage Reports That Actually Make Sense

The Microsoft 365 admin center now includes a comprehensive agents usage report. You can finally see who’s using what, when, and how much it’s costing you. The report breaks down active users by licensing status and shows which agents are performing best—whether they’re built by Microsoft, your team, or third-party partners.

Pay-As-You-Go SharePoint Agents

Here’s a brilliant feature: SharePoint agents now work on a pay-as-you-go model. Don’t have full Copilot licenses for everyone? No problem. Enable PAYG under Copilot > Billing & usage, set departmental budgets, and give your team access without breaking the bank.

Pin Copilot to Windows Taskbar (Organization-Wide)

IT admins can now enable or disable Copilot pinning across the entire organization with one click. It’s a separate setting in the Copilot Control System, so you won’t mess up existing configurations. Users can still customize their own experience.

Enhanced Dashboard Drilldowns

Managers using the Copilot Dashboard can now explore metrics within their direct teams and one level below in the organizational structure. Perfect for getting granular insights without overwhelming data.

Read Also: Top 10 Things to Try First with Microsoft 365 Copilot

Stronger Governance & Compliance Tools

Sensitivity Labels Enforced on Agents

Security just got tighter. Every agent created with Copilot Studio now inherits the highest sensitivity label from its knowledge sources. If you’re using “Confidential” files, the agent operates under that same classification. Microsoft Purview policies are automatically enforced.

Complete Transparency via Microsoft Purview

Administrators can now see exactly what web search terms Copilot used alongside the original prompt and response. This transparency is available in Activity Explorer within Data Security Posture Management for AI. There’s even a new filter to quickly find interactions where Copilot used web searches.

Data Loss Prevention (DLP) is Now Live

DLP for Microsoft 365 Copilot and Agents is generally available. You can prevent Copilot from accessing, processing, or mentioning files with specified sensitivity labels. The feature includes alerts and a simulation mode to test settings safely.

Smarter Copilot Features Across Devices

Voice Commands in Mobile Copilot Chat

The Microsoft 365 Copilot mobile app on iOS now supports voice interaction. Perfect for working on the go when typing isn’t practical.

SharePoint Web Parts Integration

SharePoint site editors can now embed Copilot agents directly into SharePoint pages using new web parts. This makes AI assistance available right where your teams collaborate.

Copilot in Teams Without Recording

Need to discuss sensitive topics? Copilot in Teams now offers a no-recording mode, so you can speak freely without worrying about saved transcripts.

Copilot Notebooks

Work with up to 100 files in one flexible interface. Copilot Notebooks provide a unified workspace for complex projects requiring multiple documents.

Enhanced App Experiences

Word Gets Audio Summaries

Word now offers audio summaries, improved formatting help, and prompt history. Listen to document summaries during your commute or while multitasking.

PowerPoint Pulls Excel Data Seamlessly

Create data-driven presentations faster by pulling Excel information directly into PowerPoint slides through Copilot.

Outlook Classic Support

Desktop Outlook users can now launch Copilot agents directly within the classic Outlook app.

Edge Gets “Rewrite” Feature

Improve any web-based content instantly with Edge’s new “Rewrite” functionality. Perfect for editing forms, emails, or social media posts.

Developer & IT Team Features

Microsoft hasn’t forgotten about the technical teams. The July update includes new Graph connector tools in Teams Toolkit, enhanced grounding capabilities using Outlook emails and Dataverse sources, plus eDiscovery support and unified deployment through Word and PowerPoint.

Three Features You Should Try This Month

1. PAYG SharePoint Agents

Test the pay-as-you-go model for SharePoint agents. It’s cost-effective and perfect for pilot projects.

2. Copilot Notebooks

Upload multiple files and see how Copilot handles complex, multi-document workflows.

3. Voice Chat in Mobile Copilot

Try voice commands on your mobile device—it’s surprisingly intuitive and faster than typing.

Copilot is Growing Up Fast

Microsoft 365 Copilot is evolving rapidly into a more secure, flexible, and powerful platform. The July 2025 update shows Microsoft’s commitment to enterprise needs: better admin controls, stronger compliance tools, and smarter AI features.

IT teams should explore the new dashboards, PAYG options, and enhanced visibility tools. End users will love Copilot Notebooks and the improved app integrations.

Ready to explore these features? Start with the admin center updates, test the new mobile voice features, and see how Copilot Notebooks can streamline your workflow. Your teams will thank you for staying ahead of the curve.