Satya Nadella teases next-gen AI upgrades across Microsoft 365

Microsoft CEO Satya Nadella has shared a glimpse of the next wave of AI-powered experiences coming to Microsoft 365 — and it looks like the company is going all-in on what he calls “model-forward innovation.” In a series of posts on X, Nadella outlined five key upgrades designed to make everyday productivity tools smarter, more collaborative, and more deeply integrated with AI.

The most striking new feature is Agent Mode in Excel, which essentially turns the spreadsheet into an interactive coding environment. Instead of typing formulas or writing scripts, users can now prompt Copilot directly in their workbook to build complex models and analyses without ever leaving Excel. Nadella called it his “new favourite IDE.”

Then there’s multi-player AI in Microsoft Teams — one of the first collaborative agent experiences. These shared assistants operate within the context of group chats, channels, or meetings, allowing multiple people to interact with AI simultaneously. It’s like having a project manager, note-taker, and researcher all rolled into one digital colleague.

The update also includes a Knowledge Agent that taps into enterprise graph data to surface relevant information across the company’s ecosystem, a GitHub for Teams feature that lets developers jump from chat to code seamlessly, and — perhaps most notably — model choice. Users in Microsoft’s Researcher tool will soon be able to switch between OpenAI and Anthropic models, picking whichever fits their workflow best.