Microsoft Relaunches Copilot With an Autonomous AI Agent and Sandbox Coding

Microsoft has given Copilot a major relaunch, turning it into an entirely new application with three key tabs: Home (“Home”), Code (“Code”), and Autopilot.

The Home tab combines the functions of Copilot Chat and Cowork, serving as the main screen for viewing recent activity, receiving recommendations, and quickly returning to work in progress. In the near future, Microsoft will add a personalized Today (“Today”) panel that will automatically bring together important emails, meeting requests, and discussions from Teams.

The Code tab, based on GitHub Copilot technology, allows everyday users to create applications, automation workflows, and dashboards. The entire programming and testing process is isolated in a secure “sandbox” within the organization’s corporate cloud environment, making it possible to share completed tools with colleagues without risk.

The third component, Autopilot, is an autonomous AI agent with its own digital identity, memory, and computing resources powered by Microsoft IQ. It can independently perform tasks while an employee is away: monitoring Teams channels, automating routine work, and processing meeting outcomes. Integrating the AI agent into the Outlook or Teams work environment allows users to bring it into a conversation through the familiar @ mention.

The financial model for the new Copilot has changed and is now strictly tied to the nature of employees’ tasks. While a standard user subscription still provides access to basic chat and the standard Word, Excel, and PowerPoint office applications, the advanced Cowork, Code, and Autopilot components will be offered on a pay-as-you-go basis. Lengthy AI agent computations and the use of demanding models such as Astra and Fable will be billed according to the resources consumed. To help companies control spending on agent features and avoid unexpected expenses, Microsoft is introducing a dedicated FinOps for AI tool for IT administrators.

The updates will begin rolling out in the coming weeks to members of the Microsoft Frontier program, where the Home and Code tabs will debut, while Autopilot will enter closed preview later this month.