Whats new in Microsoft 365 | July Updates

Key insights

• Compact toast notifications in Teams: Users can now select between standard and compact notification sizes in Teams to reduce screen clutter and improve focus. This feature is off by default and must be enabled in Settings > Notifications > Choose Compact. Rollout completes by late July 2025.
  
• Save chats and messages for later: Individuals can save any post, reply, or chat message in Teams for quick access from the Saved view. Clicking a saved message opens the full conversation, making it easier to revisit important info. Available late August to early September 2025.
  
• Meeting Join Bar and URL Validation: A new join bar lets users quickly enter meetings they've RSVP’d “Yes” or “Tentative.” Additionally, Teams meeting URLs will now be validated to prevent security software from breaking links—organizations should whitelist Teams URLs before September 30, 2025.
  
• Workflows app in Microsoft Teams: The new Workflows app automates repetitive tasks across Microsoft 365 using Power Automate. Users can build workflows for approvals, syncing updates, and more with just a few clicks. Launches September 2025.
  
• Expanded SMS support in Teams Premium: Organizers with a Teams Premium license can send SMS appointment notifications to Australian phone numbers via Microsoft Bookings and Virtual Appointments. This enhances communication without changing current SMS behavior. Available late July through early August 2025.
  
• Microsoft Outlook improvements: Large audience warnings on iOS/Android alert users when emailing many recipients; unverified sender banners warn about potential impersonation; reporting junk email now offers unsubscribe options if supported by the sender. These features roll out May–August 2025.
  

Overview of Microsoft 365 July 2025 Updates

Microsoft 365 continues to evolve, offering organizations fresh features and enhanced experiences across its suite of services. In his comprehensive video update, Nick Ross [MVP] (T-Minus365) explores the July 2025 rollout, highlighting significant changes to Teams, Outlook, Entra, Intune, Copilot, and Admin tools. These updates are set to impact user productivity, security, and IT administration, requiring businesses to balance the adoption of new features with ongoing training and policy adjustments.

This month's updates focus on streamlining workflows, boosting security, and providing greater customization. As organizations prepare for these changes, it is crucial to understand both the benefits and the challenges that come with them. The following sections break down the most impactful features, offering insights into their practical implications and potential tradeoffs.

Microsoft Teams: Productivity Meets Personalization

Among the standout additions to Teams is the new option to select between standard and compact toast notification sizes. By allowing users to enable compact notifications, Microsoft aims to reduce screen clutter, especially for those in high-notification environments. However, this feature is off by default, meaning organizations must encourage users to explore and activate it themselves for maximum benefit.

Additionally, Teams now enables users to save chats and channel messages for later reference. This improvement promises to help employees quickly revisit important information without unnecessary scrolling. The new meeting join bar further simplifies how users access live meetings, displaying banners for immediate entry and making it easier to manage overlapping sessions. While these changes are designed to boost efficiency, they may require brief adjustment periods as users become familiar with the new interfaces.

Security enhancements also take center stage, with the introduction of Teams Meeting Join URL validation. This feature aims to prevent security products from rewriting join links, which can sometimes render them unusable. Organizations must review and potentially update their security solutions and communicate these changes to IT staff to ensure a seamless transition.

Outlook and Entra: Elevating Security and Communication

Outlook receives several notable improvements, including large audience warnings on mobile devices and a new banner for unverified senders. Both features seek to reduce accidental data leaks and protect users from phishing attempts. By warning users before sending to large groups or interacting with unfamiliar contacts, organizations can foster a more cautious communication culture.

Moreover, Outlook now allows users to report junk and unsubscribe from senders in a single action, streamlining inbox management. Although these updates enhance user experience, they also depend on users’ willingness to engage with the new features and adjust their habits accordingly.

On the identity front, Microsoft Entra’s improved backup and restore experience for Authenticator on iOS simplifies device migrations. By leveraging iCloud and iCloud Keychain, organizations can now offer a more seamless setup process for employees, while also reducing support overhead.

Intune and Copilot: Automation and AI in Action

Microsoft Intune introduces hotpatching for Arm64 devices, LAPS for macOS, real-time Apple device update tracking, and wildcard support for Endpoint Privilege Management. These updates are designed to automate routine tasks, improve compliance, and reduce manual intervention. For example, hotpatching allows critical updates without restarts, minimizing downtime, while wildcard support eases the burden of rule management for Windows admins.

Meanwhile, Microsoft Copilot’s growing influence is evident with the general availability of Security Copilot in both Entra and Intune. These AI-driven tools enable IT teams to investigate threats, manage identities, and optimize device configurations through natural language interactions. Additionally, Copilot Notebooks in OneNote and intelligent meeting recap in Teams illustrate Microsoft’s commitment to embedding AI across everyday workflows. While these advancements promise substantial productivity gains, organizations should carefully consider the training and policy implications of integrating AI into sensitive processes.

Admin and Security Enhancements: Strengthening Defenses

For administrators, the release of linkable token identifiers provides a powerful tool for tracing user sessions and responding to security incidents. This feature, now generally available, supports better anomaly detection and threat mitigation across Microsoft 365 services. Furthermore, token protection in conditional access policies has been expanded to Entra ID P1 licenses, making advanced security controls more accessible.

To combat evolving threats, Microsoft Defender for Office 365 introduces new detection technology targeting mail bombing attacks. By intelligently analyzing email volumes and sender patterns, this solution can divert suspicious messages to the junk folder while respecting safe sender lists. This proactive approach aims to reduce inbox overload and protect users from targeted spam campaigns, though it requires IT teams to monitor for any false positives that may disrupt legitimate communication.

Balancing Innovation with Usability and Security

The July 2025 Microsoft 365 updates reflect a careful balance between innovation, usability, and security. While new features such as workflow automation, AI-powered insights, and enhanced notification controls offer clear productivity benefits, they also introduce new complexities for IT departments and end users alike.

Organizations must weigh the advantages of rapid adoption against the need for effective change management, user education, and updated security policies. By staying informed and proactive, businesses can harness the full potential of these updates while minimizing disruption and risk in an increasingly digital workplace.

Keywords

Microsoft 365 July updates Microsoft 365 new features July 2025 Microsoft Office update July Microsoft Teams latest features Microsoft Outlook updates July Microsoft 365 productivity tools July cloud collaboration updates office software enhancements