Microsoft 365 Copilot: 36 New Features

Key insights

• GPT 5.2 powers smarter reasoning across Copilot with better answer quality.
  Use the new Thinking Mode selector to choose how Copilot approaches complex tasks.
• Copilot Chat now works directly in Outlook and OneDrive, and appears inside Power Apps model-driven apps.
  This gives in-app help for emails, files, and business workflows without switching tools.
• Power Apps vibe and natural-language page generation speed app creation and data views.
  Copilot can also help visualize data in views and edit model-driven web resources for richer apps.
• Microsoft Purview Data Loss Prevention blocks Copilot from processing files marked sensitive, no matter where they are stored.
  Admins also get environment routing, tighter content policies, PowerShell controls, and Copilot Studio capacity tracking for safe, scalable rollout.
• Copilot Search adds department-level discovery and a new Glance Card for quick previews.
  Search now includes Copilot Chat for faster, context-aware answers from people and content sources.
• Productivity features include PPT image editing and a floating Copilot button in OneDrive (premium features).
  Copilot Agents and extensibility updates let teams automate repeatable workflows and integrate custom AI behaviors.

Susanth Sutheesh’s recent YouTube update walks viewers through the February 2026 round of changes to Microsoft 365 Copilot, describing 36 feature additions, improvements, and policy updates across apps and enterprise controls. The video aims to help professionals stay current without sifting through dense release notes, and it highlights shifts toward deeper operational AI inside everyday tools. In this report, we summarize the main points, explain practical tradeoffs, and outline the challenges organizations may face when adopting the new capabilities. Overall, the update shows Microsoft pushing for broader integration while tightening governance and control.

Core AI Improvements and Reasoning

The update centers on a stronger reasoning engine, driven by GPT 5.2, which promises more nuanced outputs and better handling of complex tasks. Additionally, the introduction of a Thinking Mode selector gives users control over how Copilot approaches problem solving, so outcomes can be tuned for speed, creativity, or caution. These changes improve utility for higher-stakes work, but they also increase expectations for model transparency and validation, especially when results impact business decisions. Consequently, teams should consider testing new modes against existing workflows to verify reliability before full rollout.

Moreover, improved memory capabilities in M365 Copilot Memory aim to maintain context across interactions, which can reduce repetitive prompts and speed up common tasks. However, persistence of context raises privacy and accuracy concerns, so administrators will need clear policies about what Copilot retains. In practice, balancing helpfulness with data minimization requires careful configuration and user training to avoid mistaken assumptions about what the assistant knows. Therefore, governance must evolve alongside capability to maintain trust.

Application Integrations and Productivity Gains

Microsoft extended Copilot into core apps, notably bringing Copilot Chat into Outlook and making it available in Power Apps model-driven experiences. This integration allows users to get contextual assistance inside emails, calendars, and business applications, which can streamline drafting, data retrieval, and process automation. At the same time, embedding AI in more touchpoints increases surface area for errors, so teams should plan phased adoption and monitor for unintended outcomes. Furthermore, Copilot’s assistance in PowerPoint image editing and OneDrive file interactions simplifies creative and file management tasks for everyday users.

For Power Apps specifically, features such as natural language page generation, the Power Apps vibe experience, and visualized data views let citizen developers move faster when building apps. Yet faster creation means a larger number of apps in an environment, which can complicate maintenance and compliance. Thus, organizations must weigh the productivity boost against the operational burden of app lifecycle management, opting for governance rules and reuse patterns that limit technical debt. Training and guardrails will help balance speed with sustainability.

Enterprise Governance, Security, and Compliance

February’s release adds stronger control plane tooling, with Microsoft Purview updates and expanded Data Loss Prevention (DLP) that prevent Copilot from processing labeled sensitive files wherever they are stored. In addition, environment routing and content security policy improvements give IT teams more options to decide where data is processed. These steps address a core tradeoff: enabling helpful AI while protecting sensitive information, and they reflect a realistic approach to enterprise risk management. Nevertheless, increased governance complexity requires investment in admin training and in automation to enforce policies at scale.

Tools such as PowerShell support for Power Apps and Power Automate management, along with Copilot Studio credits and capacity tracking, help administrators automate and monitor usage. While these management features improve oversight and cost control, they also introduce new administrative tasks and require careful capacity planning. Consequently, organizations should evaluate their governance posture and create a staged enforcement plan that balances agility with protection. In short, governance now must be as dynamic as the AI features it governs.

Search, Agents, and Extensibility

Copilot Search enhancements include department-level discovery, a new Glance Card for fast previews, and tighter integration between search and chat for context-aware answers. These improvements speed up information retrieval and reduce the friction of finding colleagues and content within large organizations. However, richer search capabilities mean that indexing, relevancy tuning, and privacy settings need ongoing attention to prevent leakage or outdated results. Therefore, teams should combine technical configuration with clear user guidance to achieve useful and safe discovery.

On the extensibility front, Copilot Agents and Copilot Studio additions emphasize customization and enterprise workflows, enabling tailored agents and capacity controls. This opens doors for powerful automation and domain-specific assistants, while raising challenges around lifecycle management and security of custom agents. As a result, IT and development teams must coordinate on design standards, testing practices, and access controls to ensure extensibility delivers value without introducing new risks. Ultimately, effective adoption depends on balancing innovation with discipline.

Practical Considerations and Adoption Challenges

Adopting these updates requires organizations to manage several tradeoffs: productivity versus privacy, speed of delivery versus long-term maintainability, and capability versus governance overhead. For example, enabling Copilot in more apps accelerates workflows but also increases monitoring needs and potential regulatory exposure. To address this, companies should adopt phased rollouts, define acceptable use policies, and invest in user education to reduce surprises and misuse.

Finally, Susanth Sutheesh’s walkthrough emphasizes that while feature breadth is impressive, real benefit depends on deliberate implementation. By testing changes, aligning governance, and training users, organizations can capture value while minimizing harm. In conclusion, February 2026’s Copilot updates deliver meaningful advances in reasoning, integration, and control, but they also require careful planning to balance opportunity and risk in production settings.

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