What’s New in M365 Copilot: August 2025 Monthly Roundup
Every month, Microsoft sneaks a few more features into Copilot. Some of them make you say “finally,” others make you scratch your head, and a few actually change how you work day-to-day. August falls into that sweet spot where the updates are practical, focused, and honestly overdue in a couple of places. If you’re using Copilot Chat or building agents in Copilot Studio, these are the ones you’ll actually notice.
Copilot Chat Updates
Pro-Code Extensions (New)
Until now, Copilot Chat felt a little like a low-code sandbox; good for basic scenarios, but not something you’d throw into mission-critical workflows. That changes with pro-code CEAs (Custom Extensions for Actions). Developers can now wire in serious functionality, directly in chat.
Why it matters: No more workarounds. If your business needs an action that ties into a line-of-business app, you don’t have to push users into another system or force them to memorize a weird shortcut. The extension is right there in Copilot.
Custom Extensions in the Store (New)
Extensions aren’t just for admins anymore. Users can now add CEAs straight from the Store. IT still decides what’s on the shelf (no, you can’t just download “make my job disappear” as an extension), but employees don’t have to wait days for deployment.
Why it matters: This one’s about time. When people find a tool that helps, they can start using it immediately. Fewer tickets, faster adoption, and way less frustration.
Agents in Web-Grounded Chat (Improved)
Copilot Studio agents now work inside web-grounded Copilot Chat. That means when you ask a question, you can get both your company’s internal data and relevant web information in one response.
Why it matters: This update is a small change with a big impact. Instead of bouncing between “what does my company say?” and “what’s the web answer?” you get both in one conversation. Fewer tabs, fewer interruptions, and a smoother experience.
Language Coverage (Improved)
Copilot expanded its language support once again. It’s not flashy, and it won’t get the applause that a shiny new feature does, but it matters.
Why it matters: If you’ve got teams spread across different regions, this reduces friction. Instead of struggling with workarounds, users get to use Copilot in the language that makes sense for them. Quiet update, big payoff.
Copilot Studio Updates
Teams Meetings as Knowledge (New)
We’ve all been there. Someone asks, “What did we decide in last week’s meeting?” and the silence is deafening. Now you can point an agent at Teams meetings as a knowledge source.
Why it matters: Agents can summarize discussions, remind you of decisions, and surface action items without you having to rewatch an hour-long recording. It’s like having that one colleague who actually did take good notes.
Upload Limit Raised to 1,000 (Improved)
The SharePoint/OneDrive cap just jumped from 200 → 1,000 files per agent. This is one of those unglamorous updates that solves a real pain point.
Why it matters: Before, anyone building agents with large knowledge sets had to slice content across multiple agents, manage duplicates, and constantly shuffle files. Now, one agent can cover more ground. Less clutter, more consistency.
Platform Update
GPT-5 in Microsoft 365 Copilot (New)
Copilot is now powered by GPT-5. Behind the scenes, it decides whether to use a lightweight version for quick tasks or the heavy-duty reasoning model for complex ones. In Copilot Studio, you can pick GPT-5 directly when building.
Why it matters: You don’t have to think about it. Just use Copilot like normal and you’ll start noticing answers are smarter, faster, and a little more human. It’s the AI version of upgrading your car engine but keeping the same steering wheel.
At a Glance
- Pro-code CEAs in Copilot Chat
- Add CEAs from the Store
- Agents usable in web-grounded chat
- Expanded language support
- Teams meetings as knowledge sources
- File upload limit increased to 1,000
- GPT-5 powering Microsoft 365 Copilot
Final Thoughts
August Copilot updates aren’t full of flashy wins or one-off “wow” moments. It’s about making Copilot more usable at scale. Pro-code CEAs mean developers can finally build serious tools for chat. Teams meeting knowledge makes agents useful in ways that hit home for almost everyone. The bigger file cap removes a long-standing roadblock for builders. And GPT-5? That’s the silent upgrade that makes everything just feel sharper.
If you’ve been waiting for Copilot to move from “neat experiment” to “daily driver,” these updates push it further down that road. Now it’s up to us to actually put it to work, because Copilot won’t take notes and send the follow-up email… at least, not yet.
