Microsoft announces 12 features for Copilot in AI companion strategy

Microsoft announced its Copilot Fall Release on October 23, 2025, introducing 12 features designed to transform the AI assistant into what the company calls a "companion" that connects users to themselves, others, and their daily tools. The announcement from Mustafa Suleyman, CEO of Microsoft AI, represents a shift toward AI systems that prioritize human connection over engagement metrics.

"Technology should work in service of people. Not the other way around. Ever," Suleyman stated in the announcement. The release builds on Microsoft's $20 billion advertising business, which the company reported in April 2025 after Copilot integration drove a 21% increase in search and news advertising revenue.

Collaborative features target group interactions

The Groups feature allows up to 32 participants to collaborate in real-time using Copilot as a shared assistant. According to the announcement, the system "keeps everyone aligned by summarizing threads, proposing options, tallying votes, and splitting tasks." Users initiate sessions by sending a link, enabling anyone to join and view the same conversation thread.

Microsoft positions this functionality as "pioneering ways to measure AI's social intelligence – how it elevates group chats, encourages creativity, and grows conversations." The approach contrasts with what Suleyman described as optimization "fully for 1:1 engagement" by other companies.

Imagine, a separate collaborative tool, enables users to browse and adapt AI-generated ideas. The feature allows individuals to like and remix creations, establishing what Microsoft characterizes as "a dynamic ecosystem where creativity multiplies."

Personalization includes visual character and conversation styles

Mico, an optional animated character whose name references Microsoft Copilot, provides visual presence during voice conversations. The character responds through animation, color changes, and expressions intended to make interactions feel more natural. Suleyman described it as "expressive, customizable, and warm."

The release introduces conversation styles including "real talk," which Microsoft describes as offering "a collaborative model that challenges assumptions with care, adapts to your vibe, and helps conversations spark growth and connection." The feature remains available to signed-in users aged 18 and older.

Memory & Personalization enables long-term information retention across sessions. According to the announcement, users can instruct Copilot to remember specific details like "training for a marathon or an anniversary, then recall it during future interactions." The system now references past conversations, reducing repetition during continued interactions. Users maintain control to edit, update, or delete stored memories.

Connectors integrate external services and accounts

The connectors feature links services including OneDrive, Outlook, Gmail, Google Drive, and Google Calendar. According to Microsoft, this integration allows users to "search and find what you need across multiple accounts using natural language" to locate documents, emails and calendar events.

The system requires explicit consent before accessing data. Users control which services remain connected and searchable through privacy settings.

Proactive Actions, currently rolling out in Deep Research, surfaces insights and suggests next steps based on recent activity or research threads. Microsoft positions this as transitioning Copilot "from reactive answers to proactive support, keeping your work moving forward effortlessly." The feature requires a Microsoft 365 Personal, Family, or Premium subscription, with usage limits applied.

Health features ground responses in credible sources

Copilot for health addresses what Microsoft identifies as one of the most common AI chatbot use cases. The system grounds responses in sources including Harvard Health and helps users find doctors based on specialty, location, language, and other preferences. According to the announcement, the goal centers on helping users "take control of your health by empowering you with high-quality information and connecting you to the right care fast."

Microsoft's broader health initiatives in Copilot have faced scrutiny from educational institutions concerned about data protection and accuracy. A September 2025 Data Protection Impact Assessment from SURF, the Dutch IT cooperative, documented instances where Copilot generated fabricated information about individuals, including non-existent academic papers and incorrect attributions.

The health features remain available only in the United States at copilot.microsoft.com and the Copilot iOS app.

Educational tool employs Socratic method for learning

Learn Live transforms Copilot into a voice-enabled tutor using Socratic questioning rather than direct answers. According to Microsoft, the system "uses questions, visual cues, and interactive whiteboards to make learning stick, whether you're preparing for finals, practicing a new language, or exploring a new subject."

The feature operates only in the United States and represents Microsoft's entry into educational AI applications, an area where the company sees "huge opportunity for Copilot to add value."

Browser and operating system integration expands functionality

Copilot Mode in Edge, which Microsoft first introduced in August 2025, evolves into what the company describes as an "AI browser that is your dynamic, intelligent companion." With user permission, Copilot can view open tabs, summarize and compare information, and execute actions including booking hotels or completing forms. Voice-only navigation enables hands-free browsing.

Journeys organizes past browsing into storylines, allowing users to revisit ideas and resume tasks. The feature remains available only in the United States, with privacy protections and opt-in settings maintained throughout.

Microsoft states it is "turning every Windows 11 PC into an AI PC" through Copilot integration in Windows. The wake word "Hey Copilot" initiates conversations when the feature is enabled and the PC remains unlocked. The new Copilot home provides access to recent files, apps, and conversations. The system can open and summarize files, guide users through tasks with Copilot Vision, and will soon support text interaction.

Pages, Microsoft's collaboration canvas, now supports multi-file upload for up to 20 files across common document, image, and text formats. Copilot Search combines AI-generated answers with traditional results, providing cited responses for discovery tasks.

Model strategy includes proprietary and third-party systems

Microsoft's strategy involves deploying both internally developed models and external systems. According to Suleyman, the company has released models including MAI-Voice-1, MAI-1-Preview and MAI-Vision-1 in recent months. The announcement states that "product integration of these models has just begun but this model work is essential to our long-term vision for Copilot."

The company integrated OpenAI's GPT-5 model across Microsoft 365 Copilot, GitHub Copilot, and Azure AI Foundry in August 2025. This partnership prompted commentary from Elon Musk, who predicted that "OpenAI is going to eat Microsoft alive."

Marketing implications center on shifted user behavior

The release carries implications for the marketing community as Copilot's advertising performance continues to demonstrate strong metrics. Microsoft Advertising research published in August 2025 revealed that Copilot generates 73% higher click-through rates and 16% stronger conversion rates compared to traditional search advertising, with data spanning November 2024 through May 2025.

Customer journeys through Copilot measure 33% shorter than conventional search paths. According to Microsoft's first-party data, daily active users grew consistently during the measured period, with user satisfaction increasing by 2% monthly throughout 2025.

Copilot Search, launched in Bing on April 4, 2025, combines traditional search functionality with generative AI capabilities. The system analyzes search intent and delivers results in multiple formats, generating concise answers with source citations for straightforward questions while creating digestible summaries for complex topics.

The conversational search approach contrasts with traditional keyword-based methods. Nicole Schumacher, Senior Director of Product Marketing at Microsoft Advertising, explained in July 2025 that "in the past, to search for something, you had to know exactly what you were looking for. You had to be an expert at keywords, briefly describing or distilling what you wanted in one single step to pinpoint your search to practical results."

Advertisement placement within Copilot follows a distinct structure, with advertisements appearing below organic responses accompanied by conversational summaries explaining relevance. This "Ad Voice" feature creates separation between organic and sponsored content while providing contextual connection between advertisements and ongoing conversations.

Availability and privacy controls vary by market

All updates launched in the United States on October 23, 2025, with rollout across the United Kingdom, Canada, and additional markets occurring in subsequent weeks. Specific feature availability varies by market, device, and platform.

Groups, Learn Live, and real talk conversation style remain available only in the United States. Copilot health features operate exclusively in the United States at copilot.microsoft.com and the Copilot iOS app. Journeys and Actions capabilities in Edge currently function only in the United States. Real talk requires users to be signed in and aged 18 or older.

Connectors feature availability is rolling out gradually and may not yet be available in all regions or languages. Proactive Actions requires a Microsoft 365 subscription with usage limits applied. Feature availability may vary by device and platform.

Microsoft maintains that users remain "in control at every step with clear privacy protections and opt-in settings." The Memory & Personalization system allows users to edit, update, or delete memories. The connectors system requires explicit consent before data access, with users controlling what remains connected and searchable.

Competitive landscape intensifies around conversational search

Microsoft Corporate Vice President Jordi Ribas publicly compared Copilot to Google AI Mode in July 2025, stating that "both provide compelling generative responses" while noting differences in how each platform structures search responses. According to Ribas, "Copilot Search provides richer answer cards although without generative descriptions" for certain query types.

The comparison occurred as Microsoft's advertising business crossed $20 billion in annual revenue. Despite this growth, Microsoft's Bing maintains approximately 2.51% global search market share compared to Google's 89.12% dominance, according to Cloudflare data from Q1 2024.

Suleyman concluded the announcement by stating, "When we started talking about this idea of an AI companion a few years ago it seemed distant and uncertain. Now it's real, it's here. We can't wait for you to feel the difference."

The release represents Microsoft's interpretation of what Suleyman describes as evaluating "what a relationship with an AI companion should look like and feel like." According to the announcement, "Copilot is designed to be empathetic and supportive, not sycophantic. It will push back on you sometimes, but always respectfully. This is AI that listens. That learns. That earns your trust."

Timeline

• December 2023: Microsoft announces Copilot general availability, transitioning from Bing Chat preview
• April 4, 2025: Microsoft launches Copilot Search in Bing, combining traditional search with generative AI
• April 19, 2025: Microsoft unveils Copilot Merchant Program for shopping integration
• April 30, 2025: Microsoft reports advertising revenue surpasses $20 billion with 21% search revenue growth
• July 2, 2025: Microsoft details how generative AI reshapes search behavior through interview with Nicole Schumacher
• July 21, 2025: Jordi Ribas compares Copilot to Google AI Mode in public analysis
• August 5, 2025: Microsoft introduces Copilot Mode in Edge browser with AI-powered features
• August 7, 2025: Microsoft integrates GPT-5 across Copilot platforms
• August 6, 2025: Microsoft Advertising publishes research showing 73% higher click-through rates for Copilot
• September 11, 2025: SURF downgrades Microsoft Copilot education risks after Data Protection Impact Assessment
• October 23, 2025: Microsoft announces Copilot Fall Release with 12 new features

Summary

Who: Microsoft AI, led by CEO Mustafa Suleyman, announced the Copilot Fall Release. The company's Copilot Team developed the 12 features across multiple product groups.

What: Microsoft introduced 12 features transforming Copilot into an AI companion, including collaborative Groups supporting up to 32 participants, Memory & Personalization for long-term information retention, connectors for external service integration, Copilot for health grounded in credible medical sources, Learn Live employing Socratic tutoring methods, enhanced Copilot Mode in Edge browser with Actions and Journeys, Windows integration with "Hey Copilot" wake word, Mico animated character for voice conversations, real talk conversation style, Proactive Actions for research insights, Pages multi-file upload supporting 20 files, and Copilot Search combining AI answers with traditional results.

When: The announcement occurred on October 23, 2025, with immediate availability in the United States. Rollout to the United Kingdom, Canada, and additional markets follows in subsequent weeks. Feature availability varies by market, device, and platform, with several features including Groups, Learn Live, Copilot for health, Journeys, and Actions limited to United States users.

Where: Features launched through copilot.microsoft.com, Microsoft Edge browser, Windows 11 operating system, and Copilot applications for iOS and Android. Connectors integrate with OneDrive, Outlook, Gmail, Google Drive, and Google Calendar. Geographic availability restrictions apply to specific features based on regulatory and market considerations.

Why: Microsoft positions the release as fulfilling its vision of "human-centered AI" that serves people rather than demanding attention or optimizing for screen time. According to Suleyman, the company aims to build AI that "helps you make better decisions, spark your creativity, deepen your connections" while maintaining that "you should judge an AI by how much it elevates human potential, not just by its own smarts." The release addresses growing competition in conversational search and AI assistants while leveraging Microsoft's $20 billion advertising business built on Copilot integration. The features respond to what Microsoft identifies as top AI chatbot use cases including health and education, while introducing collaborative capabilities that differentiate from competitors focused on individual engagement. The announcement occurs amid intensifying competition with Google AI Mode and follows Microsoft's integration of OpenAI's GPT-5 model in August 2025.