In the January 2026 update, Microsoft focuses on making Copilot more practical for everyday work, especially in Word, Excel, PowerPoint, and Outlook.
Below are the key updates that matter most, explained simply.
Table of Contents
1. Copilot Can Now Work With You, Not Just Answer Questions
With Agent Mode, Copilot can actively:
- Edit Word documents
- Analyze Excel spreadsheets
- Improve PowerPoint slides
Copilot shows what it’s doing and why, and you can review or change the result at any time.
In simple terms: Copilot acts more like a real work assistant.
2. Create Files From a Single Prompt
Copilot can now create:
- A Word document
- An Excel analysis
- A PowerPoint presentation
All from one short description. The files already include structure and formatting, so you don’t have to start from a blank page.
3. Outlook Gets Smarter and Faster
Copilot in Outlook can now:
- Summarize unread emails
- Let you manage emails using natural language
(flag, archive, mark as read, set auto-reply) - Support voice-based email catch-up on mobile
This reduces clicks and saves time.
4. Copilot Works With Local Excel Files
You no longer need to upload Excel files to the cloud.
Copilot now works with files stored directly on your computer.
This means:
- Faster responses
- No change to your existing workflow
5. Use Copilot in PowerPoint Even in View-Only Mode
Even if you can only view a presentation, Copilot can still:
- Summarize the slides
- Explain content
- Answer questions about the presentation
This is helpful when reviewing shared or read-only decks.
Quick Conclusion
This update shows that Microsoft is turning Copilot into a real productivity assistant, not just a chatbot.
- Easier to use
- Fewer manual steps
- More helpful for non-technical users
If you use Microsoft 365 daily, Copilot is becoming much more useful than before.