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Build 2025: Microsoft 365 Copilot Update with GPT-4o Image Generation and AI Agents

At the Build 2025 conference, Microsoft announced a series of updates to its Microsoft 365 Copilot assistant as part of the second wave of enhancements - Microsoft 365 Copilot Wave 2. These updates aim to refine user interaction with AI tools and expand the capabilities of the platform. While some features are already accessible to users, others will roll out in the coming weeks.

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Redesigned Interface for Enhanced Interaction

The Microsoft 365 Copilot app has undergone a significant redesign to optimize user engagement with AI-driven functionalities. The updated interface organizes key tools - including Search, Chat, Agents, Notebooks, and the Create function - into a left-hand sidebar.

The Copilot chat section has also been enhanced with a new feature that allows users to quickly incorporate content from various sources, such as local files or details from prior interactions with colleagues.

Advanced Image Generation with GPT-4o

Microsoft has integrated OpenAI’s latest image-generation model, GPT-4o, into Copilot. This advancement enables the creation of more intricate and detailed visualizations while improving the refinement of previously generated images.

Copilot 365 Image Generator GPT 4o
Image by Microsoft

However, the technology is not without its limitations. In some cases, iterative refinements may introduce unintended effects, such as the application of a yellow filter or alterations to specific elements of the original image.

Introduction of Copilot Notebooks

A new tool, Copilot Notebooks, has been introduced to help users collect and organize information from various sources, including past conversations with Copilot. Each Notebook operates within its own context, ensuring that interactions remain focused and relevant. Additionally, Copilot can generate concise audio summaries of the contents within a Notebook, providing users with an alternative way to review information.

Upcoming Features: Search and Memory

In June 2025, Copilot will introduce two highly anticipated features: Search and Memory.

Search And Memory 1
Image by Microsoft
  • Copilot Search: This feature will be deeply integrated with the Microsoft Graph, enabling users to locate specific pieces of content across their digital ecosystem. Optimized for natural language queries, Copilot Search can interpret context rather than relying solely on keywords, delivering more precise results.
  • Copilot Memory: When enabled by the user, this feature allows the AI to retain details from previous conversations within a profile. By leveraging this stored information, Copilot can provide more personalized and context-aware responses, enhancing the relevance of its outputs.

Specialized AI Agents for Complex Workflows

Microsoft has introduced its first set of specialized AI agents, described as "first-of-its-kind reasoning agents for workloads." These include the Analyst and Researcher agents, which are designed to automate complex tasks and entire workflows based on the data provided to them.

Additionally, Microsoft 365 Copilot will feature an Agent Store, where users can access both Microsoft-developed solutions and third-party offerings. For organizations with unique requirements, custom agents can be created to address specific needs.

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Author: Sergey Tkachenko

Sergey Tkachenko is a software developer who started Winaero back in 2011. On this blog, Sergey is writing about everything connected to Microsoft, Windows and popular software. Follow him on Telegram, Twitter, and YouTube.

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