Microsoft Copilot development just doesn’t sleep… This time they have just announced “agent mode” which they claim could be game changer in the way we (humans) work with AI agents (Copilot). Called “Agent Mode” this latest update marks is not just about new features, but a significant shift in how we interact with Office apps through Copilot.

What is Agent mode?
Agent Mode is Microsoft’s answer to the growing demand for intelligent, iterative workflows without needing to craft lengthy prompts. Agent Mode brings agentic reasoning into Excel and Word, (others will follow), allowing users to work along side Copilot through multi-step tasks ranging from data analysis to document creation – with a level of depth and refinement that feels like working alongside an expert.
“In the same way vibe coding has transformed software development, the latest reasoning models in Copilot unlock agentic productivity for Office artefacts.”
Sumit Chauhan |CVP |Microsoft Product Group
These are both application and context aware. As an example:
- In Excel, Agent Mode “speaks spreadsheet” language. Whether you need to build financial models, loan calculators, resource calculators or budgets, Agent Mode in Excel means Copilot now understands the nuances of formulas, formatting, and validation. Rather than just generating outputs, it can evaluate your work, suggest fixes, and works with you until you get the result you need.
- In Word, Agent Mode will be able to transform writing into a dialogue. Users can prompt, Copilot drafts, user can then asks clarifying questions, and Copilot will refines the content with native styling and formatting. Microsoft say this is vibe writing in action — fast, fluid, and focused.
Chat first creation…
Then, there is the new “Office Agent”, which will live inside Copilot chat. This is designed for when discussions start in a Copilot Chat, rather from within document or spreadsheet. In this context, the Office Agent will have the ability to create “proper” documents directly from your chat, using deep reasoning and live previews to guide the process and creation. These will be powered by Anthropic models and not OpenAI.
Microsoft have given (in their official article) some examples we can use.
In Excel
Financial Analysis Prompt: “Create a financial monthly close report for a bike shop business, including a breakdown of product lines across VTB, VTF, sequential, and year-over-year growth. Use standard financial formatting and best practices.”
Loan Calculator Prompt: “Build a loan calculator that computes monthly payments based on user inputs for loan amount, annual interest rate, and term in years. Generate a schedule showing month, payment, principal, interest, and remaining balance. Present the results in a clear, formatted table.”
Monthly Report Update Prompt: “Help me update this monthly report for September. Update the data table with the latest numbers from the /Sept Data Pull email. Summarise the key highlights including insights compared to last month’s /August monthly report.doc.”
In Word
Project Update Prompt: “Update the executive summary for clarity, bold all key findings, and insert a bulleted list of next steps based on the /Project update meeting. Make sure to add a conclusion“.
Document Style Prompt: “Can you clean up this document? Title case for section headers, branding updates per the ‘/Latest brand guidelines’ email, and italicize all external partner mentions. Feel free to ask if you need help identifying partners or guidelines.”
In Powerpoint (coming later)
Interestingly, Microsoft say that Copilot can now (finally) create good presentations in PowerPoint!
“PowerPoint is one of the most used tools for creating presentations, but over the last two years, AI (Copilot) has often fallen short when creating slides. Office Agent changes that. Office Agent creates tasteful, well-structured PowerPoint decks and well-researched Word documents. ”
Microsoft say that now… When you work with Copilot to create presentations you will get a totally transformed experience. It will
- Clarify your intent
- Conduct deep research
- Produce high-quality content.
How to use “Agent Mode”
First thing first….. Not everyone can yet and it’s not available day one… OK now read on…
Currently, Agent Mode is available for organisations (and users) enrolled in the Frontier program for Microsoft 365 Copilot who have a Microsoft 365 Copilot license or that have Microsoft 365 Personal or Family with a Copilot Pro license.
Agent Mode works in Excel on the web but will be coming soon to desktop. Word is also coming soon.
For Excel, you will also need to install the Excel Labs add-in and choose “Agent Mode”.
Oddly, from what I have read, the Office Agent is only available for Copilot Pro subscribers on Microsoft 365 Personal or Family or Premium and not (yet) Microsoft 365 Commercial. It’s also limited to USA currently! 🙁