Microsoft adds Copilot coding tool and always-on AI agent Microsoft unveiled new Copilot features including a coding tool called Code and an enterprise AI agent called Autopilot, alongside cost-management capabilities. Microsoft on Friday unveiled several new capabilities in its Copilot app, including a coding tool and an always-on AI agent, as the software giant seeks to transform its AI assistant into a one-stop shop for office workers. The company is also embedding its Office applications Word, Excel, and PowerPoint directly within Copilot, allowing users to work collaboratively on these apps without having to leave the AI tool. Shares of the Redmond, Washington-based company rose about three per cent in early trading. Microsoft is racing to expand Copilot beyond its chat-based roots to boost adoption as it competes with AI chatbots such as ChatGPT and Claude.Microsoft Introduces Code: Build Apps with Natural LanguageThe Windows maker unveiled Code to let users build apps, dashboards and other software using natural language prompts. The tool, powered by the same technology as Microsoft's GitHub Copilot, will roll out to early-access customers at the end of the month, while 365 Premium and Pro subscribers can preview it later this year. Microsoft is also rolling out Autopilot, a revamp of the Scout AI agent it unveiled in June, in a private preview at the end of the month.The so-called digital coworker agent will carry its own identity in the company directory and have specific permissions that users can control. I think it has been very hard for many organizations to bring agents into the enterprise because of security, compliance and governance concerns, Annie Pearl, corporate vice president of Copilot Product, said in an interview.Copilot Adds Cost-Management Tools for AI UsageSo we have worked to make sure that we were building this in a way that would really be able to be used in the enterprise. Microsoft also unveiled cost-management capabilities to allow employees to have direct insight into costs tied to their AI usage. The move comes at a time when enterprises are increasingly worried about rapid AI usage racking up unexpected costs. The updates place Copilot closer to a full workplace platform rather than a standalone chatbot.Office workers could move between drafting documents, analyzing spreadsheets and building small applications inside the same assistant. Enterprises have been cautious about AI agents that act on their own. By giving Autopilot a managed identity and controllable permissions, Microsoft is trying to answer those concerns directly. Code is aimed at workers who need software but lack deep programming training.Natural language prompts could lower the barrier to creating internal tools and dashboards. The staged release gives Microsoft time to gather feedback. Early-access users will see Code first, with broader availability tied to premium subscriptions later in the year. Cost visibility has become a central issue as companies scale AI use.The new controls are meant to help employees understand spending linked to their own AI activity. Microsoft has not disclosed pricing for the new capabilities. It also did not say how many customers will join the private preview of Autopilot. The company continues to face competition from ChatGPT, Claude and other assistants that are also moving into workplace tasks.Copilot's expansion is part of that broader contest for office productivity. Analysts have said adoption, not just feature count, will determine whether Copilot becomes a daily tool for enterprises. Friday's announcements target that gap by adding practical functions and governance controls. Microsoft shares drew attention after the news.The early trading gain reflected investor interest in the company's AI roadmap and its effort to turn Copilot into a broader business product. The company plans to share more details as the rollouts begin. For now, the new features mark another step in Microsoft's push to make AI assistance a standard part of office work.