Microsoft 365

OpenAI has designated its newly launched GPT-5.6 as the 'preferred model' for Microsoft 365 Copilot, powering Word, Excel, PowerPoint, and Cowork. The announcement comes days after Bloomberg reported Microsoft is increasingly deploying its in-house MAI models to reduce reliance on OpenAI and cut costs.

Microsoft has launched Scout, an AI assistant built on the OpenClaw framework that operates across Microsoft 365. The system requires a GitHub Copilot subscription and includes policy conformance checks with audit trails to address security concerns about autonomous AI agents.

Microsoft is rolling out a redesigned Microsoft 365 Copilot that loads twice as fast, according to the company. The update introduces "progressive disclosure" — showing tools and controls contextually based on prompts rather than displaying all options at once.