Microsoft is rolling out new capabilities for Copilot in Excel, enabling AI-powered data retrieval, seamless imports from external sources, and advanced natural language processing.
The new Copilot features in Excel are currently available to Beta Channel users who meet the system requirements. To access the update, users must be running Windows Version 2503 (Build 17729.20000) or later or Mac Version 16.87 (Build 24053110) or later. Microsoft has confirmed that this update will also be rolled out to Excel for the web in the near future.
The update allows users to fetch real-time data from the web, extract structured insights from company files, and generate complex formulas through text-based commands. These enhancements aim to eliminate repetitive tasks and improve how professionals interact with large datasets.
This expansion aligns with Microsoft’s broader efforts to integrate AI across Copilot in Microsoft 365, which is already embedded in Word, PowerPoint, and Outlook. By automating time-consuming spreadsheet operations, Excel’s Copilot is evolving into a more comprehensive data analysis assistant.
AI-Powered Data Search and Integration
One of the most powerful new features in Excel Copilot is its ability to fetch public data directly into spreadsheets. Instead of manually copying figures from websites, users can now type, “Look up a list of countries and their exchange rates, and easily paste these results into a table.” Copilot retrieves and structures this information in real time, reducing the need for manual data entry.
Beyond external sources, Copilot also enables direct integration with company files. A user can request data from Word, PowerPoint, or PDF documents stored in OneDrive, and the AI will extract and organize the relevant details in Excel. This feature is particularly useful for financial teams consolidating reports or analysts working with distributed datasets.
Microsoft has also integrated Copilot with Power Query, allowing it to locate and pull structured data from multiple Excel spreadsheets. Users no longer need to search for and manually copy information—Copilot can automatically retrieve specific datasets and update them dynamically when changes occur.
Smarter AI-Driven Formula Generation
Excel Copilot’s formula generation capabilities have been significantly improved with AI-driven natural language processing. Instead of memorizing Excel functions, users can now enter queries like “Calculate total sales per region for the last quarter”, and Copilot will generate and apply the appropriate formula. This eliminates the complexity of writing advanced functions manually.
Copilot also provides automated trend analysis. Users can ask, “Which product categories showed the most revenue growth this year?” and receive a structured response with AI-generated insights. This enables businesses to analyze performance metrics without extensive data processing.
Microsoft Rethinks Copilot Pricing—How It Affects Users
As Copilot expands, Microsoft recently adjusted its pricing model to make AI-powered assistance more accessible. Initially available only to enterprise users for $30 per month, the company has introduced a pay-as-you-go model, allowing businesses to pay per query rather than through a fixed subscription.
Under this pricing system, standard AI-generated responses cost $0.01 per message, while requests that involve company-specific data retrieval cost 30 messages per response. This flexibility is designed to encourage adoption among small businesses and individual users who may not require AI-powered features daily.
Microsoft has also expanded Copilot’s reach beyond enterprise customers by adding support for Microsoft 365 Personal and Family plans. This signals a shift toward making AI a core feature in Microsoft’s broader software ecosystem.
AI Security and Microsoft’s Bug Bounty Expansion
As Microsoft integrates AI deeper into productivity tools, concerns about security and data integrity are growing. To address potential risks, the company has expanded its AI Bug Bounty Program, offering financial incentives for researchers who identify vulnerabilities in Copilot and related services.
The program now includes Copilot’s interactions with messaging services such as Telegram and WhatsApp, suggesting that Microsoft is preparing for a future where AI-powered assistance extends beyond traditional office applications.
Security researchers can earn between $5,000 and $30,000 depending on the severity of the identified vulnerability. By proactively testing for weaknesses, Microsoft is looking to ensure that AI-driven automation remains a reliable tool for businesses managing sensitive data.
Beyond technical security, privacy remains a pressing concern. AI models like Copilot process vast amounts of data, raising questions about compliance with enterprise-level security policies. While Microsoft claims that Copilot does not store customer prompts or responses, the reliance on cloud-based AI means organizations must carefully evaluate how these tools interact with internal data systems.
How Microsoft is Positioning AI in Productivity Software
Microsoft’s expansion of Copilot in Excel signals a broader shift in how AI is being positioned within Microsoft 365. Instead of treating AI as an optional add-on, the company is embedding it directly into core applications, with the goal of making AI assistance a standard part of workplace productivity.
Google is taking a similar direction with its integration of Duet AI into Google Workspace. Duet AI is designed to assist users across various Google Workspace apps, including Gmail, Drive, Slides, and Docs. It can transform a Google Docs outline into a presentation in Slides, generate email responses, create charts from spreadsheet data, and even offer grammar checks. The AI tool also integrates with Google Meet, providing AI-based enhancements for lighting and sound, as well as automated meeting summaries. In Google Chat, Duet AI can summarize lengthy threads for users.
Microsoft’s approach focuses stronger on business-centric automation. The ability to retrieve and analyze structured financial or operational data gives Excel Copilot an advantage in professional environments where precision and accuracy are critical.
But the company’s push for AI-assisted workflows also introduces questions about the future of traditional software skills. If Copilot can automatically generate formulas and analyze trends, the need for manual spreadsheet expertise may decline over time.
However, Microsoft argues that AI is designed to complement human decision-making rather than replace user knowledge. For now, Copilot acts as an assistant, but its capabilities suggest that AI-driven automation will continue to reshape how work is done.
The Future of AI in Microsoft 365
As Copilot evolves, its role in Microsoft 365 is expected to expand beyond Excel into other enterprise applications. Future updates may enhance AI-driven automation in Microsoft Planner, where Copilot could help manage project deadlines, allocate resources, and generate progress reports.
At the same time, Microsoft is balancing accessibility with cost. The pay-as-you-go model indicates that AI-powered productivity will remain a premium feature, at least for now. However, the integration of Copilot into personal Microsoft 365 plans suggests that AI automation is gradually becoming a standard offering rather than a niche enterprise tool.
The broader implications of AI-powered assistants in productivity software will become clearer as businesses and individuals adopt these tools. So far, Copilot integrations into Microsoft’s office apps has been met with skepticism as the results leave much to desire. Often Copilot messes more up than it actually improves. Salesforce CEO Marc Benioff has criticized Microsoft Copilot as “nothing more than Clippy in disguise” for that reason.
Microsoft Clippy, the animated paperclip assistant introduced in Microsoft Office 97, was intended to help users navigate the software but quickly became notorious for its intrusive and often unhelpful nature.
Whether AI replaces traditional spreadsheet expertise or simply augments it remains an open question, but Microsoft’s continued investment in AI automation suggests that manual data entry and formula creation may soon become relics of the past.
