Microsoft 365 E7: What the new AI package offers

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Microsoft is significantly expanding its AI capabilities for Microsoft 365 Copilot: “Wave 3” integrates technology from Anthropic Claude Cowork, among other things, and introduces a multi-model strategy where Copilot automatically chooses between different AI models. At the same time, Microsoft is introducing a new M365 license with E7.

Anthropic on board

The new “Copilot Cowork” feature is a multi-step workflow engine that can execute complex tasks over minutes to hours. The backend comes directly from Anthropic Claude Cowork, breaking down requests into individual steps, analyzing tools and files, and making progress transparently visible. Users can delegate tasks and are intended to retain control; all actions are traceable and reversible. Copilot Cowork will be tested as a research preview starting March 2026 through the Frontier Program with a limited customer base.

Microsoft justifies the collaboration with Anthropic, despite the existing OpenAI partnership, with its new multi-model strategy. Copilot will support Claude models as well as the latest OpenAI generation in the future. The model selection is automatic – Copilot decides itself which model is best suited for which task. “Your work is not limited by one brand of models,” Microsoft explains the strategy.

Work IQ and Office Integration

With Work IQ, Copilot receives full context about the user's current work. The function analyzes not only individual data fragments but also incorporates files, meetings, chats, and relationships. This allows Copilot to keep its answers current and relevant.

In Office applications, Copilot will create, edit, and refine content completely in the future. Word and Excel are already generally available, with PowerPoint and Outlook to follow in the coming months. Copilot will adhere to existing Microsoft 365 permissions and sensitivity labels. Protected content will not be processed if access to the data is not permitted. All created documents will land directly in OneDrive or SharePoint.

Agent 365 as Control Center

For IT and security managers, Microsoft is introducing Agent 365, a central control platform. All agents in the organization can be monitored, secured, and controlled via the Microsoft Admin Center in the future. The platform integrates with existing security services Microsoft Defender, Entra, and Purview.

Agent 365 will be generally available from May 1, 2026, and will cost $15 per user per month. Simultaneously, Microsoft 365 E7 “The Frontier Suite” will launch for $99 per user per month. The package combines Microsoft 365 Copilot, Agent 365, and Microsoft 365 E5 with advanced Defender, Entra, Intune, and Purview security features, as well as the Microsoft Entra Suite. E7 is available with and without MS Teams.

Agents in chat and Planned Introduction

In Chat in Copilot, agents for Word, Excel, PowerPoint, and Outlook will be available in the future. The chat serves as a central entry point for chat-based creation and execution. Microsoft is currently distributing the Excel, Word, and PowerPoint agents to users. The “Schedule from Chat” function is already available, with “Send Email from Chat” to follow in spring 2026 with broad availability.

More details on Copilot Wave 3 have been published by Microsoft in a blog post.

(fo)