2026 is shaping up to be the year Microsoft 365 Copilot moves from being a helpful AI assistant into a deeply integrated AI productivity platform powered by autonomous agents, part of what many are calling a new era of AI productivity.

In this blog, we look at what’s coming, and what it could mean for your business.

🚀 Evolving Beyond the Assistant

Copilot is no longer just reactive. Microsoft is embedding AI much more deeply into the Microsoft 365 experience so that Copilot:

  • Works directly inside Outlook, Word, Excel, PowerPoint and more

  • Understands context across your inbox, calendar and files

  • Actively suggests or completes multi-step workflows

  • Surfaces insights without being asked

This shift means Copilot isn’t just suggesting things, it’s starting to do things for you.

🤖 Intelligent Agents Are Coming

A key theme for 2026 is agents, specialised AI workloads that go beyond simple prompts and can act autonomously within apps. Think of agents like dedicated helpers trained to manage specific tasks, such as:

  • Payables and expenses workflows in Dynamics 365

  • Smart document drafting and refinement in Word

  • Advanced spreadsheet analysis in Excel

  • Presentation building in PowerPoint

  • Inbox organisation in Outlook
    These agents will work across apps and data sources to deliver results with minimal input.

Microsoft is also introducing tools like Agent 365 for governance, identity and security, letting organisations manage agents at scale with confidence

📈 Deeper Integration for All Users

One of the most exciting shifts is that Copilot will become more deeply embedded across Microsoft 365, even for users on the free tier. This means Copilot won’t just live in a sidebar or separate chat window, it will become part of the fabric of everyday tasks.

📊 What We Can Expect in 2026 — Our Opinion

Here’s what this evolution means and why it matters:

🔄 Copilot Will Be Less Tool and More Team Member

As autonomous agents proliferate, Copilot could feel less like a feature and more like a digital teammate. It won’t just answer questions, it will anticipate needs, execute multi-step actions and make suggestions based on context across apps and data.

This changes the nature of work from:

“How do I use AI?”
to
“How do I collaborate with AI?”

🧠 Productivity Will Get a Boost — With Guardrails

With AI agents handling repetitive or predictable tasks, experienced and knowledge-driven teams will be freed up to focus on strategic thinking, the kind that genuinely moves a business forward.

🚧 Adoption Will Create Winners and Laggards

Teams that embrace these tools thoughtfully, investing in training, governance and process redesign, could see significant leaps in both efficiency and quality. When Copilot is embedded properly, it does not just speed things up; it raises the standard of output across the organisation.

By contrast, teams that may not use Copilot may struggle to realise its value, especially if they already rely heavily on Microsoft 365 in their day-to-day workflows. Copilot is not designed to sit on top of existing ways of working. It reshapes them.

This technology changes workflows, not just interfaces. Organisations that continue working exactly as they did before may find Copilot underwhelming, while those willing to adapt how work flows between people, tools and data are far more likely to unlock its full potential.

💡 Why This Matters for Your Business

Copilot’s next phase is not about replacing people. It is about removing friction so your teams can focus on what truly matters. As Copilot and its agents become more capable and more contextual, AI can be embedded directly into everyday work rather than added on as an extra step. At SMS Business Cloud, we help businesses understand where Copilot fits, deploy it effectively and turn its capabilities into real, practical value. Microsoft 365 Copilot is available at £24.26 per user, per month. If you are ready to work smarter with AI in 2026, now is the time to take the first step.

📞 Call us on 01925 818448 📧 Email sales@smsbusinesscloud.com 🛒 Or buy online 24/7 at