4 August 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Microsoft Updates Zero Trust Assessment Tool to Cover AI Adoption and DevSecOps

Microsoft has expanded its Zero Trust Assessment Tool to include AI-focused evaluation checks alongside existing Security Operations and Infrastructure assessments. The update adds automated posture evaluation across tenant configurations, enhanced reporting with executive summaries, and a new DevSecOps pillar with 15 control groups and 91 tasks covering source code through to cloud deployment. Microsoft has also released a new e-book, Zero Trust for AI: Rebuilding Security Controls for Autonomous and Agentic Systems, and expanded its Zero Trust workshop programme.

The tools are directly relevant to Australian businesses deploying Microsoft 365 Copilot and AI agents. As organisations adopt Copilot and autonomous agents, establishing baseline AI security posture and prioritising governance gaps becomes critical — the updated assessment and workshop provide structured starting points for that work.

Source: Microsoft Security Blog, 4 August 2026 →

3 August 2026 — Microsoft Learn, learn.microsoft.com

Microsoft Opens Copilot in 30 Trial to SMBs Through Cloud Solution Providers

Microsoft has made Copilot in 30 generally available through Cloud Solution Provider (CSP) partners from 1 August 2026. The programme gives organisations with fewer than 300 employees a 25-user, 30-day Microsoft 365 Copilot Business trial, allowing staff to try Copilot in their day-to-day tools before a subscription commitment. Partners can transact the trial via CSP New Commerce through 31 December 2026. A new customer evaluation tool launching in mid-August will generate industry-tailored prompts and scenarios, giving trial users a relevant starting point for their Copilot evaluation.

The August 2026 Partner Center update also confirms that Microsoft 365 E3 promotional pricing — 10% off on three-year terms and 20% off on one-year targeted terms — is extended to 31 December 2026. Microsoft 365 E7 promotional offers retire on 1 October 2026. Australian CSP partners with E7 opportunities in their pipeline should close those transactions before that date, and can begin offering the Copilot in 30 trial to SMB customers immediately.

Source: Microsoft Learn, 3 August 2026 →

31 July 2026 — Microsoft Tech Community, techcommunity.microsoft.com

Microsoft 365 Copilot Adds GPT-5.6 and Claude Models with Expanded Agent Integration

Microsoft’s July 2026 update to Microsoft 365 Copilot introduces three new AI models and broader agent support across core apps. OpenAI’s GPT-5.6 is now in Copilot, delivering stronger reasoning for multi-step tasks in Word, Excel, PowerPoint, Chat, and Cowork. Anthropic’s Claude Sonnet 5 is now available in PowerPoint, Word, and Cowork for agentic multi-step work, and Claude Fable 5 joins Cowork for longer, more complex autonomous workflows. Users can now @mention Word, Excel, and PowerPoint agents directly in Copilot Chat to create documents, spreadsheets, and presentations without leaving the Copilot app.

Other July updates include mobile push notifications on iOS and Android (daily briefings and task reminders), browser automation in Cowork that lets Copilot operate across SaaS tools and internal web portals, and event-triggered task monitoring in email and Teams. For Australian organisations evaluating or expanding Microsoft 365 Copilot, the July update reflects a platform with growing model choice and increasingly autonomous workflow capabilities across the Microsoft 365 suite.

Source: Microsoft Tech Community, 31 July 2026 →

31 July 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Midnight Blizzard “CaptiveCrunch” Campaign Targets Hotel Wi-Fi to Steal Microsoft 365 Credentials

Microsoft Threat Intelligence has identified a campaign called CaptiveCrunch, operated by Storm-2945, a sub-cluster of the Russian state-sponsored group Midnight Blizzard. Active since May 2026, the campaign manipulates DNS and HTTP traffic at hotels, conference centres, and shared venues worldwide to redirect Wi-Fi guests to malware and phishing infrastructure. Attackers deploy the CornFlake remote-access trojan, the ChocoShell credential stealer targeting browser cookies and Microsoft 365 SSO tokens, and the FruitStone command-and-control panel, with attacks additionally exploiting the device code authentication flow in Microsoft Entra ID.

Australian corporate travellers using hotel or conference Wi-Fi are at direct risk: a compromised device can give attackers persistent access to an organisation’s Microsoft 365 environment. Microsoft recommends requiring VPN or mobile hotspot use while travelling, blocking device code authentication flows in Entra ID where possible, and enforcing phishing-resistant multi-factor authentication across all accounts.

Source: Microsoft Security Blog, 31 July 2026 →

30 July 2026 — Microsoft 365 Blog, microsoft.com/en-us/microsoft-365/blog

Microsoft 365 Copilot Passes 30 Million Paid Seats as Agentic AI Workflows Take Hold

Microsoft confirmed on 30 July 2026 that Microsoft 365 Copilot has surpassed 30 million paid seats globally, with net seat additions more than doubling quarter-over-quarter in Q4 FY2026. Conversations per user nearly doubled year-over-year, and the share of enterprise customers deploying Copilot to most information workers grew 75% quarter-over-quarter. The autonomous multi-step workflow tool Copilot Cowork — which demonstrated 30–40% cost savings versus single-model alternatives — moved from concept to adoption by half the Fortune 500 in six months.

For Australian organisations, the data signals that Microsoft 365 Copilot has reached mainstream adoption velocity: time to reach 80% monthly active usage has fallen from months to days, and the fastest-growing adopter sectors now include healthcare and automotive alongside finance and professional services. Businesses that tailor Copilot to specific roles rather than deploying it generically are documenting measurable gains — Microsoft’s own sales team doubled time spent in customer-facing activities and closed deals 20% faster, a blueprint directly applicable to Australian mid-market and enterprise organisations.

Source: Microsoft 365 Blog, 30 July 2026 →

29 July 2026 — Microsoft Newsroom, news.microsoft.com

Microsoft 365 Copilot Surpasses 30 Million Paid Seats as Microsoft Posts Record Q4 FY26 Results

Microsoft announced its fiscal year 2026 fourth-quarter results on 29 July, reporting revenue of $90.0 billion (up 18 per cent year on year) and confirming that Microsoft 365 Copilot has surpassed 30 million paid seats. The Productivity and Business Processes segment — which includes Microsoft 365 — generated $37.8 billion in Q4 revenue (up 14 per cent) and $140.0 billion for the full fiscal year. Microsoft 365 Commercial Cloud revenue grew 16 per cent year on year in Q4.

The 30 million paid-seat milestone — up from 20 million just one quarter prior — signals rapid enterprise adoption of AI-assisted productivity tools. For Australian businesses evaluating Copilot, the scale of deployment across global enterprise customers provides validation of the platform and its integration across Microsoft 365 applications including Teams, Outlook, Word, and Excel.

Source: Microsoft Newsroom, 29 July 2026 →

27 July 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Microsoft Launches Global External Red Team Alliance to Strengthen AI Security Testing

Microsoft’s AI Red Team has announced the External Red Team Alliance (EXTRA), a formal global initiative to expand AI safety and security testing beyond internal corporate boundaries. The first component provides unrestricted research gifts to 18 university labs across six continents — including Australia’s University of Melbourne Artificial Intelligence Assurance Lab — to advance independent AI safety research. A second component builds a distributed network of external specialists to participate directly in red teaming highly specialised areas where deep domain, regional, or multilingual expertise is required.

For Australian organisations deploying Microsoft security products or AI services, EXTRA signals broader and more rigorous testing of frontier AI systems before they reach enterprise customers. The initiative specifically targets failure modes — including security vulnerabilities, alignment failures, and domain-specific abuse patterns — that single-team testing typically misses, making it particularly relevant as Australian businesses expand their use of AI-powered tools.

Source: Microsoft Security Blog, 27 July 2026 →

23 July 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Microsoft Reports 7.6 Billion Q2 Email Threats as BEC Attacks Surge 121% and Teams Exploitation Rises

Microsoft’s Q2 2026 email threat landscape report recorded 7.6 billion phishing threats across April to June 2026, with business email compromise (BEC) attacks spiking 121% in April before normalising by June. Teams-based malicious call attempts reached nearly ten times mid-2025 levels by quarter end, with threat actors escalating exploitation of the trusted collaboration platform. Credential phishing dominated, accounting for 94–96% of all malicious payloads detected across the quarter.

For Australian businesses using Microsoft 365, the report highlights growing risk across email and Teams environments. Microsoft recommends enabling Zero-hour auto purge, Safe Links, and Safe Attachments in Defender for Office 365, alongside network protection and passwordless authentication to reduce credential theft exposure. Law enforcement’s disruption of the Tycoon2FA phishing-as-a-service platform also drove a 92% reduction in linked phishing volumes — demonstrating the impact of coordinated action against threat infrastructure used by attackers targeting Australian organisations.

Source: Microsoft Security Blog, 23 July 2026 →

24 July 2026 — Microsoft 365 Copilot Blog, techcommunity.microsoft.com

Anthropic Claude Opus 5 Now Available in Microsoft 365 Copilot

Microsoft has added Anthropic’s Claude Opus 5 to the Microsoft 365 Copilot model selector, rolling out across Word, Excel, PowerPoint, Copilot Chat, Copilot Cowork, and Copilot Studio. Claude Opus 5 is the newest model in Anthropic’s Opus family, designed for complex, multi-step professional work and delivering improvements over Opus 4.8 in agentic coding, professional knowledge work, and long-horizon reasoning.

For Australian organisations using Microsoft 365, the update brings stronger writing and structure in Word, higher-quality data modelling in Excel, more polished presentation drafting in PowerPoint, and stronger reasoning for open-ended tasks in Copilot Chat. Availability is rolling out via the model selector and may vary by region and tenant configuration.

Source: Microsoft 365 Copilot Blog, 24 July 2026 →

24 July 2026 — Microsoft Partner Center (Microsoft Learn), learn.microsoft.com

Microsoft Marketplace Expands Trial Capabilities, Giving Australian Software Partners New Ways to Convert Customers

Microsoft has announced expanded trial capabilities in Microsoft Marketplace, giving software companies new tools to convert evaluations into paid subscriptions. Announced at MCAPS Start for Partners, the updates bring free trial support to a wider range of offer types — including SaaS (metered, per-user, and flat-rate), virtual machine, Dynamics 365, and Power BI offers — with configurable trial durations from one to 180 days and a single management interface in Partner Center.

Australian independent software vendors (ISVs) and Microsoft channel partners can now reach Marketplace’s global customer base with structured free trials, supported by new trial badges and dedicated discovery filters. Performance data is trackable through Partner Center Insights, and clear upgrade paths help accelerate conversion from trial to purchase. The feature is opt-in and can be configured without disrupting existing customer experiences.

Source: Microsoft Partner Center (Microsoft Learn), 24 July 2026 →

Published 23 July 2026 — Microsoft Partner Center (Microsoft Learn), learn.microsoft.com

Microsoft Defender Threat Intelligence Reaches End of Life 1 August 2026 — Action Required for CSP Partners

Microsoft has confirmed that the standalone Microsoft Defender Threat Intelligence (MDTI) SKU will reach end of life on 1 August 2026. All MDTI capabilities are now included at no extra cost inside the Microsoft Defender portal for any customer holding a Microsoft Defender or Microsoft Sentinel licence, making the standalone product redundant. Customers do not need to take migration action as the threat intelligence features are already available to them through the unified Defender portal.

For Australian Cloud Solution Provider (CSP) partners and MSPs, there is an immediate billing action required before the 1 August deadline. Microsoft will issue a credit memo to each partner account for any remaining MDTI subscription term extending past 1 August, and partners are responsible for passing that credit through to their end customers. Enterprise Agreement customers receive refunds directly from Microsoft. Partners should audit all customer accounts with active MDTI subscriptions now and ensure billing teams are prepared to process the credits.

Source: Microsoft Partner Center, 23 July 2026 →

22 July 2026 — Microsoft Newsroom (Asia), news.microsoft.com

Western Sydney University Deploys Microsoft 365 Copilot to All Staff, Second Australian University to Do So

Western Sydney University (WSU) has rolled out Microsoft 365 Copilot to every staff member — including casuals and Higher Degree Research candidates — making it the second university in Australia to extend enterprise-grade Copilot to its entire workforce. The deployment followed a 100-user pilot and covers drafting documents, summarising meeting notes, analysing information, and creating presentations, with Microsoft providing training in agentic AI, curriculum design and student engagement.

Vice-Chancellor George Williams said the initiative was purposeful rather than novelty-driven: “We’re not adopting AI for its own sake. We’re doing it because it helps us better deliver on our core purpose — student success.” Microsoft ANZ President Jane Livesey noted the rollout places WSU “among leading universities worldwide bringing Copilot to all staff.” The deployment offers a practical model for Australian organisations evaluating enterprise-wide Microsoft 365 Copilot rollouts.

Source: Microsoft Newsroom (Asia), 22 July 2026 →

Published 1 July 2026 — Microsoft Partner Center (Microsoft Learn), learn.microsoft.com

Microsoft Launches Permanent Copilot SMB SKUs and Windows 365 Discounts as New Financial Year Kicks Off

From 1 July 2026, Microsoft has introduced two permanent Microsoft 365 Business with Copilot subscription tiers — Business Standard with Copilot (USD $23.50 per user per month) and Business Premium with Copilot (USD $32 per user per month) — giving small and medium businesses a stable, always-on AI licensing path rather than a promotional window. Alongside this, Microsoft has launched Windows 365 Business promotions of 25% off through June 2027, and 20% off Windows 365 Enterprise and Flex through September 2026, offering Australian businesses direct savings on Cloud PC subscriptions. New FY27 promotions also extend Microsoft 365 Copilot discounts of 15–30% for qualifying SMB customers through September 2026.

For Australian businesses evaluating Copilot adoption, the new permanent SKUs remove the uncertainty of promotional pricing and simplify long-term budgeting. Note also that new Agent 365 purchases now require Microsoft 365 E5, Business Premium, or specific Defender and Purview suite licences as prerequisites — a change effective 1 June that organisations should factor into AI agent deployment plans.

Source: Microsoft Partner Center, 1 July 2026 →

Productivity & Copilot

Microsoft 365 News & Updates

Feature releases, licensing changes, and Copilot updates that affect how Australian businesses use Teams, Outlook, SharePoint, and more.

Last updated: 6 August 2026

30 July 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Microsoft 365 E5 Gains Full Intune Suite as Passkeys Become Default and AI-Targeted Defences Expand

Microsoft’s July 2026 security round-up delivers several changes that directly affect Microsoft 365 subscribers. As of 1 July 2026, the full Microsoft Intune Suite — advanced endpoint management, certificate management and AI-powered troubleshooting — is included in Microsoft 365 E5 at no additional cost, with select capabilities also extended to E3. Passkeys are now the default authentication method in Microsoft Entra ID, reducing reliance on SMS and voice authentication and strengthening phishing resistance. Microsoft Purview now integrates with Entra Internet Access to detect and block sensitive data being shared with unmanaged cloud and AI applications in real time. Microsoft Defender introduces prompt injection protection in preview, identifying and quarantining emails containing malicious AI instructions before delivery.

For Australian organisations, the Intune inclusion represents a meaningful cost saving for E5 subscribers previously paying separately. IT and security teams should audit current authentication policies to align with the passkeys-first default and review Purview configurations to take advantage of the new AI app data controls.

Source: Microsoft Security Blog, 30 July 2026 →

17 July 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Microsoft to Present AI Agent and Supply Chain Attack Research at Black Hat USA 2026

Microsoft’s threat intelligence team has outlined its agenda for Black Hat USA 2026 (from 20 July), warning that attackers are increasingly exploiting trusted systems rather than vulnerable ones. The headline presentation, “Poisoned at the Source,” covers npm package supply chain compromises where malicious payloads are embedded at the package level and distributed through software build pipelines. Additional sessions address AI agent security — specifically agents with misconfigured access permissions and browser-based AI tools that introduce new attack surfaces. Microsoft is also launching a new Defender Experts Threat Intelligence service and extending Managed Detection and Response (MDR) coverage to third-party and multicloud environments.

For Australian businesses using Microsoft security services, the expanded MDR coverage and new Defender Experts service deliver broader threat detection across hybrid and multi-cloud deployments. The supply chain and AI agent research is directly relevant to any organisation adopting open-source software packages or deploying AI-powered workflows. A free Microsoft Black Hat Skilling Challenge begins 20 July for security practitioners looking to build AI-era defence skills.

Source: Microsoft Security Blog, 17 July 2026 →

Published 16 July 2026 — Microsoft Community Hub (SharePoint Blog), techcommunity.microsoft.com

Microsoft Rolls Out Wave of Copilot AI Features for SharePoint in July 2026 Update

Microsoft released its July 2026 Copilot in SharePoint update, adding capabilities that let users generate finished documents, interactive reports, and file shares directly from content already stored in SharePoint. Users can now ask Copilot to create a Word document, Excel workbook, or PowerPoint presentation from site content without copy-pasting across applications, and to build an interactive HTML report for dashboards and readouts. File sharing has also moved into the chat interface, allowing users to share specific files with colleagues directly from Copilot chat.

Additional updates include natural language approval workflows — letting users configure request tracking and sign-off processes using conversational instructions — along with built-in AI skills for automation and a /Skills command that makes team-created shortcuts discoverable across the platform. Copilot in SharePoint has been on by default for all Microsoft 365 Copilot licence holders since 16 June 2026. Australian organisations using SharePoint as their document and knowledge management platform can access these capabilities immediately as part of their existing Microsoft 365 Copilot subscription.

Source: Microsoft Community Hub (SharePoint Blog), 16 July 2026 →

Published 16 July 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Microsoft Publishes Security Framework for Least Privilege Controls on AI Agents in M365 Environments

Microsoft’s security team has published detailed guidance on securing AI agents in enterprise deployments, identifying four common failure patterns: agents operating without dedicated identities that create accountability gaps during incidents; permission creep as access expands incrementally without reassessment; cross-system risk as agents accumulate combined permissions across email, files, ticketing, and code repositories that exceed any individually evaluated boundary; and audit trail deficiencies where logging of LLM responses alone cannot establish who authorised an action or whether it was within intended scope. The recommended framework includes dedicated agent principals, task-based least-privilege role definitions, controlled tool allowlists, and comprehensive end-to-end auditability.

The guidance has direct implications for Australian organisations deploying Microsoft 365 Copilot agents. As agentic workflows act autonomously across M365 services — sending emails, accessing SharePoint files, and writing to ticketing systems — the risk of agents operating beyond intended scope grows significantly without these controls. Organisations under Privacy Act obligations should treat the recommended access review and scope documentation procedures as a compliance baseline for any automated system that processes customer or employee data.

Source: Microsoft Security Blog, 16 July 2026 →

Published 15 July 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Microsoft Launches Defender Experts Threat Intelligence Service and Expands MDR to Multi-Cloud via Sentinel

Microsoft has announced two managed security services aimed at closing the gap between threat detection and action. Microsoft Defender Experts Threat Intelligence is a new expert-delivered service providing curated threat insights tailored to a customer’s industry, geography, and environment, including early-warning alerts on emerging campaigns and recurring expert briefings. Microsoft Defender Experts MDR has been expanded to cover third-party and multi-cloud environments through Microsoft Sentinel, providing 24/7 monitoring and cross-platform threat analysis under Plan 2.

Microsoft also confirmed that Defender Threat Intelligence capabilities are now fully converged into the Defender portal, giving security teams a unified interface for detection, investigation, and response workflows. For Australian businesses running Microsoft 365 in hybrid or multi-cloud environments, these services offer a way to strengthen security operations without significant additional in-house investment — particularly relevant as the Australian Cyber Security Centre continues to report rising volumes of threats targeting enterprise environments.

Source: Microsoft Security Blog, 15 July 2026 →

Published 13 July 2026 — Microsoft Security Blog, microsoft.com/en-us/security/blog

Microsoft to Make Passkeys the Default in Entra ID and Phase Out SMS Authentication by February 2027

Microsoft has announced it will make passkeys the default authentication method in Microsoft Entra ID and discontinue its own delivery of SMS and voice one-time codes, citing an alarming rise in AI-enabled phishing campaigns that now achieve click-through rates as high as 54 per cent — compared with roughly 12 per cent for traditional phishing. From 1 September 2026, Entra ID will automatically prompt users still relying on SMS or voice to register a passkey (through Microsoft Authenticator, Windows Hello, or a FIDO2 security key). Organisations that still need SMS or voice authentication after that date must contract directly with third-party telecom providers via the Microsoft Security Store, which opens for configuration on 30 October 2026.

From 1 February 2027, Microsoft will stop providing SMS and voice authentication entirely, and passkey registration will become mandatory with no opt-out. Australian organisations running Microsoft 365 should audit which users rely on SMS-based multi-factor authentication, plan passkey rollout and user communications now, and assess any additional costs from switching to a third-party telecom provider for edge cases where SMS remains necessary.

Source: Microsoft Security Blog, 13 July 2026 →

Published 10 July 2026 — Microsoft Tech Community (Partner News), techcommunity.microsoft.com

Microsoft 365 Business with Copilot Becomes Permanent and FY27 Volume Incentives Launch for Partners

Microsoft has made the Microsoft 365 Business with Copilot SKUs permanently generally available, removing the trial limitations that previously applied to partner-sold AI bundles for small and medium businesses. Microsoft 365 Business Standard with Copilot is now priced at $23.50 per user per month, and Business Premium with Copilot at $32 per user per month. Agent 365, Microsoft’s AI agent subscription, now requires Microsoft 365 E5 or Business Premium as a licensing prerequisite. For FY27, Microsoft has launched two Copilot promotions: 15 per cent off for deployments of 300 or more Copilot licences, and 30 per cent off for 1,000 or more licences — both running through 30 September 2026. Copilot Cowork, which allows Copilot to complete multi-step agentic tasks autonomously in the background, also reached general availability during the month.

For Australian MSPs and partners, the permanent GA of M365 Business with Copilot means these SKUs can now be quoted and sold as standard products without trial caveats. The FY27 volume promotions create a material incentive to consolidate SMB customers onto Copilot platforms before the 30 September deadline. The July partner update also included an Australian customer success story: Increment partnered with Australian public education systems on AI readiness, with Microsoft 365 Copilot positioned as a core tool for institutional AI adoption across the sector.

Source: Microsoft Tech Community (Partner News), 10 July 2026 →

Published 9 July 2026 — Microsoft Community Hub (Microsoft 365 Copilot Blog), techcommunity.microsoft.com

OpenAI’s GPT-5.6 Becomes the Preferred Model in Microsoft 365 Copilot

Microsoft has made OpenAI’s GPT-5.6 the preferred model for Microsoft 365 Copilot, available from 9 July 2026 across Word, Excel, PowerPoint, Chat, and Cowork. GPT-5.6 comes in three variants — Sol for complex multi-step reasoning, Terra as the balanced everyday default, and Luna as a lightweight cost-efficient option — and Copilot selects the best-suited variant automatically, though users can also choose one from the model selector.

For Australian organisations using Microsoft 365 Copilot, the model upgrade brings measurable improvements across core apps: in Word, Copilot produces more complete drafts with stronger structure from rough input; in Excel, it handles more complex analysis with less manual guidance; and in PowerPoint, it generates richer slides with better visual balance. Copilot Cowork also benefits, with GPT-5.6 now able to execute multi-step agentic tasks end-to-end and return finished deliverables rather than draft recommendations.

Source: Microsoft Community Hub, 9 July 2026 →

Published 8 July 2026 — Microsoft Community Hub (Microsoft 365 Blog), techcommunity.microsoft.com

Microsoft 365 Copilot Connects Xero Financial Data Directly to the Workplace

Microsoft has detailed how Microsoft 365 Copilot now integrates with Xero through a Copilot-native financial agent, allowing users to query profit and loss, invoice status, and other Xero records in natural language without leaving Microsoft 365. Microsoft describes this as the start of “the agentic era” for small business technology, with Xero remaining the authoritative source for all financial records while Copilot surfaces the insights on demand.

For Australian small and medium businesses, the development is directly relevant: Xero is an Australian-founded accounting platform used by a large share of SMBs locally, and many already run Microsoft 365. The integration removes the need to export data or switch between apps to answer common financial questions, helping business owners who manage operations and finances simultaneously to retrieve timely information within the tools they already use daily.

Source: Microsoft Community Hub (Microsoft 365 Blog), 8 July 2026 →

Published 7 July 2026 — Microsoft Community Hub (FastTrack Blog), techcommunity.microsoft.com

How to mitigate the six identity and device risks before scaling Microsoft 365 Copilot

Microsoft’s FastTrack team has published a step-by-step guide to addressing the six Layer 1 identity and device risks (R1–R6) that organisations should resolve before broadly deploying Microsoft 365 Copilot. The risks include unmanaged identity access, inconsistent multi-factor authentication, noncompliant devices, licence sprawl, absent real-time risk evaluation, and an app protection gap on unmanaged mobile devices — each of which can expose a user’s entire Microsoft 365 data surface if left open.

For Australian organisations running Microsoft 365 E5, the required controls — Entra ID, Conditional Access, Intune, and Defender — are already included in the licence. The post maps each risk to its specific mitigation, including phishing-resistant MFA enforcement, Entra Lifecycle Workflows for identity hygiene, risk-based Conditional Access policies, and Intune App Protection Policies for personal mobile devices used to access Copilot.

Source: Microsoft Community Hub (FastTrack Blog), 7 July 2026 →

Published 2 July 2026 — Microsoft Community Hub (Microsoft 365 Copilot Blog), techcommunity.microsoft.com

Microsoft Sales Agent for Microsoft 365 Copilot Reaches General Availability

Microsoft has made Sales Agent in Microsoft 365 Copilot generally available, following a public preview launched in December 2025. The tool integrates CRM data with Microsoft 365 work data — including emails, meetings, and enterprise content — allowing sales teams to query account histories, generate pre-meeting briefings, and update CRM records using natural language, without switching between applications.

For Australian organisations using Dynamics 365 or other supported CRM platforms, Sales Agent is now available within Dynamics 365 Sales and on Outlook Mobile, enabling sellers to capture voice notes and update opportunity details from their mobile devices. A new AI-powered Opportunity Summary consolidates deal details, engagement signals, and recommended next steps into a single view, aimed at reducing post-meeting administration and helping sales teams maintain accurate pipeline data at scale.

Source: Microsoft Community Hub, 2 July 2026 →

Published 2 July 2026 — Microsoft Community Hub (Microsoft 365 Copilot Blog), techcommunity.microsoft.com

Anthropic Claude Sonnet 5 Now Available in Microsoft 365 Copilot, Enabled by Default for Australian Tenants

Microsoft has made Anthropic’s Claude Sonnet 5 available inside Microsoft 365 Copilot, rolling out to Copilot Cowork and Copilot in PowerPoint from 2 July 2026. The model is built for agentic, multi-step work across documents, spreadsheets, and presentations, with performance close to Anthropic’s Opus 4.8 tier at lower cost. Anthropic has been formally onboarded as a Microsoft subprocessor, meaning Claude Sonnet 5 and other standard Anthropic models used through Microsoft Online Services are covered by the Microsoft Data Protection Addendum and the Customer Copyright Commitment.

For Australian Microsoft 365 Copilot customers, the change is opt-out rather than opt-in: Anthropic models are enabled by default for all commercial tenants outside the EU, EEA, and UK, which includes Australia. Admins can restrict or scope access to specific users or Microsoft Entra ID security groups through the Microsoft 365 Admin Centre under Copilot > Settings > AI providers operating as Microsoft subprocessors. Higher-capability preview models — Claude Fable 5 and Claude Mythos 5 — remain off by default everywhere and require explicit admin opt-in; data from those models is retained by Anthropic for up to 30 days under separate terms.

Source: Microsoft Community Hub, 2 July 2026 →

Published 2 July 2026 — Microsoft Community Hub (M365 Copilot), techcommunity.microsoft.com

Microsoft Moves Copilot Studio and AI Agent Roadmaps to Microsoft 365 Roadmap

From 2 July 2026, feature updates for Microsoft Copilot Studio, Sales Agent, Finance Agent, and Service Agent are published on the Microsoft 365 Roadmap rather than Release Planner, consolidating product roadmap information for Microsoft 365 administrators into a single destination. Microsoft also introduced the Release Communications MCP Server, which provides natural-language access to official Microsoft 365 Roadmap and Azure Updates information through AI agents.

Australian IT administrators and Microsoft 365 Copilot users should update internal bookmarks and governance processes to reference the Microsoft 365 Roadmap for upcoming changes to Copilot Studio and the AI agent suite. Teams using Release Planner for change management should inform stakeholders and revise any documentation pointing to the old location.

Source: Microsoft Community Hub, 2 July 2026 →

Published 30 June 2026 — Microsoft Community Hub (Microsoft 365 Copilot Blog), techcommunity.microsoft.com

Microsoft 365 Copilot June 2026: Claude Now in Copilot Chat, Vision on Screen, and Work IQ Expanded to Power BI

Microsoft’s June 2026 What’s New post for Microsoft 365 Copilot covers a broad release wave across the platform. Anthropic’s Claude (Opus and Sonnet variants) is now available as a model option directly in Microsoft 365 Copilot Chat, giving users the ability to choose between Claude and OpenAI GPT 5.5 for different task types within the same tool. A new Vision feature lets users share their screen or point their phone camera at content, allowing Copilot to read and respond to visual context in conversation. Work IQ — introduced earlier in June — has been extended to Power BI reports and Dataverse business data, enabling natural-language queries against enterprise data sources without manual query-building.

Additional June updates include Deep Citations, which link Copilot responses back to specific sections of referenced Word or PowerPoint files rather than the whole document, and a Regenerate action that lets users request a fresh response or switch models mid-conversation. Copilot Cowork reached general availability with image generation via Imagen 2, local browser use through Microsoft Edge (using existing sign-ins), and usage-based billing now visible in the Microsoft 365 admin center. All features are rolling out progressively to Australian Microsoft 365 Copilot tenants.

Source: Microsoft Community Hub (Microsoft 365 Copilot Blog), 30 June 2026 →

Published 29 June 2026 — Microsoft Community Hub (Microsoft Security Blog), techcommunity.microsoft.com

Microsoft Sentinel Adds Table Insights for At-a-Glance Cost and Data Monitoring

Microsoft has released Table Insights, a new panel on the Microsoft Sentinel Tables page that shows 30-day data ingestion volume by tier (Analytics vs. Lake), day-over-week volume fluctuation alerts, the top five highest-volume tables with 30-day trends, the last-received timestamp for each table, and estimated daily ingestion costs.

For Australian businesses and MSPs running Microsoft Sentinel as their SIEM, the feature gives security teams a faster way to spot cost spikes, catch a third-party data connector that has silently stopped sending data, and confirm new connector onboarding has succeeded — without writing custom queries or maintaining separate monitoring workbooks.

Source: Microsoft Community Hub (Microsoft Security Blog), 29 June 2026 →

Published 26 June 2026 — Microsoft Community Hub (Microsoft Security Blog), techcommunity.microsoft.com

Six MCP Security Risks Enterprises Must Address as AI Agents Move Into Production

Microsoft’s security team has published an updated guide on the six principal security risks in Model Context Protocol (MCP) deployments, as organisations move from experimentation to production. MCP is now the standard mechanism by which AI agents—including Microsoft 365 Copilot extensions—connect to enterprise data, tools, and systems. The six risks are: prompt injection and tool poisoning (malicious instructions hidden in tool descriptions); OAuth authorisation failures known as the “confused deputy” problem; over-broad credential access across multiple systems; supply chain and rug-pull attacks on previously approved servers; shadow MCP servers created outside IT governance; and command injection from unsanitised inputs.

For Australian organisations using Microsoft 365 Copilot or any AI agent platform, Microsoft recommends treating every tool description and schema as untrusted input, adopting OAuth 2.1 with PKCE and audience-bound tokens, and assigning each agent a managed identity through Microsoft Entra Agent ID for centralised governance. All MCP traffic should route through a validated API gateway—Azure API Management can verify Entra tokens before requests reach any connected tool or data source.

Source: Microsoft Community Hub (Microsoft Security Blog), 26 June 2026 →

Published 26 June 2026 — Microsoft Community Hub (Microsoft 365 Blog), techcommunity.microsoft.com

10 Key Facts to Know Before Enabling Microsoft 365 Backup

Microsoft has published an official guide covering 10 critical considerations before enabling Microsoft 365 Backup, the platform’s native data protection service for Exchange Online, SharePoint, and OneDrive. The service delivers restore speeds of approximately 2 TB per hour and is purpose-built for bulk ransomware recovery, enabling organisations to roll back hundreds or thousands of affected sites or mailboxes to a pre-attack state using append-only backup storage that resists tampering.

All backup data remains within the Microsoft 365 trust boundary—in the same region with the same data residency requirements as live content—making it well-suited for Australian organisations with data sovereignty obligations. The service is accessible through the Microsoft 365 admin center and through partner-built applications on the Microsoft 365 Backup Storage platform.

Source: Microsoft Community Hub (Microsoft 365 Blog), 26 June 2026 →

Published 25 June 2026 — Microsoft 365 Blog, microsoft.com

Copilot in Excel Adds Finance-Grade Controls, Six Market Data Connectors, and Reusable Skills for Financial Workflows

Microsoft has released a significant update to Copilot in Excel, adding capabilities designed for financial professionals. The update introduces reusable Skills — instruction sets that guide teams through repeatable workflows such as discounted cash flow (DCF) models, book-close processes, and variance analysis. Six new federated data connectors bring live market data from CB Insights, Daloopa, FactSet, Morningstar, PitchBook, and S&P Global directly into Excel workbooks. A “Plan with Copilot” feature lets users preview which ranges, worksheets, formulas, and assumptions Copilot intends to change before execution, and a Copilot Attribution pane in Show Changes tracks which modifications were made by AI versus human collaborators. All features are generally available now to Microsoft 365 Copilot customers on Excel for Web, Windows, and Mac; custom skills roll to general availability next month, and partner-built skills will be deployable through Microsoft Marketplace from Q3 2026.

For Australian businesses with finance, accounting, or treasury teams on Microsoft 365 Copilot, these updates directly address a core accountability requirement: every AI-assisted calculation is now traceable, auditable, and defensible. The Skills capability lets teams standardise recurring financial models — FY close, board reporting, sensitivity analysis — as shareable, reusable templates accessible to the whole team. The six institutional-grade data connectors bring trusted market data into the Excel environment teams already use, without switching to separate platforms or copying data manually.

Source: Microsoft 365 Blog, 25 June 2026 →

Published 24 June 2026 — Microsoft Learn (Partner Center), learn.microsoft.com

Windows 365 GPU Enterprise Select 256 GB SKU Available for CSP Purchase from 1 July 2026

Microsoft has announced that the Windows 365 GPU Enterprise Select 256 GB SKU will become available for purchase through the Cloud Solution Provider (CSP) channel from 1 July 2026. The SKU has been temporarily unavailable due to system configuration updates. It provides GPU-enabled Cloud PC access designed for graphics-intensive workloads including design, data visualisation, and advanced software development.

For Australian MSPs and technology partners, the availability window opens on 1 July — the same day Microsoft’s global pricing update takes effect. Partners should re-engage any customers who paused evaluation of high-performance Cloud PC options, and factor the new GPU-enabled tier into conversations with clients in architecture, engineering, media, or development sectors that need powerful virtual desktops without on-premises hardware investment.

Source: Microsoft Learn (Partner Center), 24 June 2026 →

Published 19 June 2026 — Microsoft Tech Community (Partner News), techcommunity.microsoft.com

Microsoft June Security Update Introduces AI-Powered Vulnerability Scanning and New Defender, Sentinel and Purview Capabilities

Microsoft’s June 2026 security update introduces new capabilities across Microsoft Defender, Microsoft Sentinel, Microsoft Purview, and Microsoft Agent 365. The headline addition is Codename MDASH—a multi-model, agent-based vulnerability scanning system using more than 100 AI agents to find, validate, and prove exploitability across codebases—now in limited partner preview, integrating runtime security context directly into developer and security workflows.

Australian organisations using Microsoft 365 security products should note that the Azure Security Engineer Associate (AZ-500) certification retires in August 2026 and will be replaced by the Cloud and AI Security Engineer Associate (SC-500). As AI adoption accelerates both the speed and sophistication of cyberattacks, these expanded Defender, Sentinel, and Purview capabilities provide Australian businesses with stronger tools to maintain their Microsoft security posture.

Source: Microsoft Tech Community, 19 June 2026 →

Published 17 June 2026 — Microsoft Tech Community (Microsoft Entra Blog), techcommunity.microsoft.com

Microsoft Entra Rolls Out Unified Identity Risk Score and New SOC Response Roles as AI Accelerates Attacks

Microsoft has published new updates to Microsoft Entra, responding to AI-accelerated cyberattacks that now automate credential analysis, reconnaissance, and social engineering at scale. The new unified identity risk score correlates signals across accounts, sessions, workloads, and applications into a single real-time risk evaluation that feeds directly into Conditional Access policies. An updated Microsoft Entra ID Protection dashboard consolidates risky users, sign-ins, workloads, and detections into one view, replacing the previous approach of piecing together signals from separate tools.

For Australian organisations running Microsoft 365, a new identity-focused RBAC role—arriving in public preview soon—will let security operations teams take targeted response actions without broad administrative permissions, reducing the gap between detection and containment. The Conditional Access Optimization Agent has also gained a “Block risky user agent” policy to counter AI agent-based abuse, and Microsoft has expanded the flow of Defender threat detections directly into Conditional Access recommendations.

Source: Microsoft Tech Community (Microsoft Entra Blog), 17 June 2026 →

Published 16 June 2026 — Microsoft 365 Blog, microsoft.com

Copilot Cowork Reaches General Availability with Usage-Based Pricing

Microsoft has made Copilot Cowork generally available worldwide, moving the agentic system out of its three-month Frontier preview, during which more than half of Fortune 500 companies trialled it. Cowork executes complex, multi-step tasks and returns finished results rather than drafts. Microsoft now bills usage through Copilot Credits, either pay-as-you-go at $0.01 per credit or via a capacity commitment, with nine partner plugins available at launch — including Moody’s, S&P Global, and Miro — and eight more coming soon.

For Australian businesses, accessing Cowork requires a Microsoft 365 Copilot User Subscription Licence, and admins now get tenant, group and user-level spending limits and alerts to control costs. Organisations that trialled Cowork under the Frontier program have a grace period through 30 June 2026 to move to the new licensing and budget-control model before standard usage billing applies.

Source: Microsoft 365 Blog, 16 June 2026 →

Published 11 June 2026 — Microsoft Tech Community (Microsoft 365 Copilot Blog), techcommunity.microsoft.com

Copilot Notebooks Expands to Microsoft 365 Copilot Chat Users

Microsoft began rolling out Copilot Notebooks to Microsoft 365 Copilot Chat commercial and education users on 11 June 2026, extending AI-powered knowledge management to a wider range of licence tiers. Users can now add Word, PowerPoint, Excel, and Outlook files into a shared notebook and query all sources at once, with responses grounded in the uploaded material. A new mind-maps view visualises topic relationships across a notebook’s content, and a study guide feature converts material into structured learning aids.

For Australian organisations running mixed-licence environments, the update means staff on the Copilot Chat tier can access notebook collaboration alongside full Microsoft 365 Copilot subscribers in the same shared notebook. Full-licence users retain premium sources and advanced creation capabilities. Copilot Notebooks will also become available in OneNote on the web for Copilot Chat (Basic) commercial customers from mid-June 2026.

Source: Microsoft Tech Community (Microsoft 365 Copilot Blog), 11 June 2026 →

Published 9 June 2026 — Microsoft Newsroom, news.microsoft.com

KPMG and Microsoft Expand Partnership to Deploy Agent 365 and Copilot Across Enterprise Clients

KPMG and Microsoft have announced an expansion of their global relationship to help enterprise clients deploy AI at scale. Under the agreement, KPMG will adopt Microsoft Agent 365 to underpin the KPMG Trusted AI framework, enabling firms to manage, monitor, and secure AI agents across client organisations. KPMG will also deploy Microsoft 365 Copilot across its own professional workforce, embedding AI across audit, tax, and advisory service delivery. At the centre of the expansion is KPMG Workbench, a multi-agent coordination platform built on Microsoft Azure AI Foundry.

KPMG Australia is part of the global KPMG network and will be covered by this agreement. For Australian businesses that engage KPMG for advisory, audit, or tax services, the partnership signals that AI agents — specifically those powered by Microsoft 365 Copilot and Agent 365 — will increasingly shape how professional services are delivered and how client engagements are managed. Organisations using Microsoft 365 themselves can expect the same platform to be rolled out across their services providers, raising interoperability and governance questions worth addressing now.

Source: Microsoft Newsroom — KPMG and Microsoft scale trusted enterprise AI agents globally, 9 June 2026 →

Published 8 June 2026 — Microsoft Tech Community, techcommunity.microsoft.com

Microsoft Entra June 2026: Phish-Resistant MFA Extended to Linux, Passkey Campaigns Go GA

Microsoft has released its June 2026 Entra update, introducing several features now generally available. Phish-resistant multi-factor authentication has been extended to Linux desktops, supporting Ubuntu 24.04 and 26.04, and RHEL 8, 9, and 10 via the Microsoft Identity Broker — bringing Linux to parity with Windows and macOS for strong authentication. Passkey (FIDO2) Registration Campaigns have also moved to general availability, allowing administrators to configure sign-in prompts that nudge users to register passkeys and accelerate the shift to passwordless. External MFA — which permits organisations to use their preferred third-party MFA provider alongside Entra — has reached GA. The maximum number of passkey profiles per tenant has increased from 3 to 10, and Cross-tenant group synchronisation is now GA.

For Australian businesses managing Microsoft 365 environments, these updates raise the baseline security posture across mixed operating system fleets. The Linux phish-resistant MFA improvement is relevant for organisations running hybrid Windows/Linux infrastructure or RHEL in production. Passkey adoption supports the ASD/ACSC Essential Eight guidance on multi-factor authentication, and the External MFA GA release provides a supported path for organisations already running third-party MFA solutions — common in Australian financial services, healthcare, and government agencies.

Source: Microsoft Tech Community, 8 June 2026 →

Published 4 June 2026 — Microsoft Learn (Partner Center), learn.microsoft.com

Microsoft 365 E5 Now Required as Licensing Prerequisite for Agent 365

Effective 1 June 2026, Microsoft requires Microsoft 365 E5 as a licensing prerequisite for all new Agent 365 purchases. Enterprise customers must hold an M365 E5 licence before acquiring Agent 365; frontline workers require Microsoft Defender and Purview (F5 level); and small to medium businesses must have Microsoft 365 Business Premium. Organisations already on Microsoft 365 E7 — which bundles E5, Agent 365, Microsoft 365 Copilot, and Entra Suite — are unaffected by the change.

Australian businesses planning Agent 365 deployments should review their current licence tier before purchasing. Organisations on M365 E3 or lower-tier plans will need to upgrade to E5 first, adding both cost and planning lead time to any Agent 365 rollout. Microsoft has confirmed that customers without the prerequisite licences may not have access to certain Agent 365 capabilities even after purchase, making a pre-deployment licence review essential.

Source: Microsoft Learn, 4 June 2026 →

Published 2 June 2026 — Microsoft Tech Community (FastTrack Blog), techcommunity.microsoft.com

Microsoft: Copilot on Mobile Spreads Through Teams Faster Than IT Rollout Plans Assume

Microsoft’s FastTrack team has published guidance on how Microsoft 365 Copilot mobile adoption can outrun staged IT rollout plans. Once Copilot is available on mobile, usage spreads through everyday workplace behaviour — a teammate shares a faster way to prepare for a meeting, a leader asks for a summary while travelling, a project team starts referencing Copilot outputs in a chat thread — rather than following the structured phased rollout IT planned. Mobile compresses the typical pilot-to-scale timeline, creating what Microsoft describes as “behavioral adoption momentum that doesn’t wait for the next planned phase.”

For Australian IT teams and MSPs managing Copilot deployments, the practical implication is that governance decisions and user communication need to be in place before mobile usage accelerates, not after. Microsoft recommends planning across four areas before broad mobile adoption begins: rollout sequencing, user behaviour expectations, governance and readiness, and early, clear communication of what is permitted and recommended. Organisations that establish clear policies before usage spreads are better positioned to avoid conflicting local norms forming without IT oversight.

Source: Microsoft Tech Community — FastTrack Blog, 2 June 2026 →

Published 2 June 2026 — Microsoft 365 Blog, microsoft.com

Microsoft Work IQ APIs Go Generally Available 16 June: New Intelligence Layer for Enterprise AI Agents

Microsoft has announced that Work IQ APIs will reach general availability on 16 June 2026. The APIs serve as the intelligence layer for AI agents operating within Microsoft 365, enabling agents to process data from email, calendar, meetings, chats, files, and collaboration patterns and work with business context rather than raw data. Fortune 500 organisations already using Work IQ average over 600 terabytes of data through the platform; the APIs run twice as fast as traditional alternatives and consume 80% fewer tokens in coding scenarios.

For Australian businesses on Microsoft 365, Work IQ APIs make it practical to build or deploy enterprise AI agents that operate within existing tenant data boundaries and governance controls. Pricing is consumption-based via Copilot Credits, with new cost management dashboards in the Microsoft 365 admin centre enabling spending limits at tenant, group, and user levels — a useful control for MSPs managing multiple client accounts. Developers access four API domains — Chat, Context, Tools, and Workspaces — through a simplified surface of 10 generic tools replacing more complex legacy interfaces.

Source: Microsoft 365 Blog, 2 June 2026 →

Published 2 June 2026 — Microsoft 365 Blog, microsoft.com

Microsoft Launches Scout: An Always-On AI Agent for Microsoft 365

Microsoft has unveiled Scout, a new AI agent that works continuously in the background across Teams, Outlook, OneDrive, and SharePoint — without needing to be prompted. Scout proactively schedules meetings, flags important calendar items, generates preparation materials, identifies upcoming deliverables, and blocks calendar time before deadlines hit. Microsoft describes Scout as the first product in a new “Autopilot” category of always-on enterprise AI agents, built on Work IQ technology that learns individual work patterns over time to become increasingly personalised.

Scout operates under individual Microsoft Entra identities rather than shared service accounts, enforcing existing Microsoft Purview data protection policies, sensitivity labels, and data loss prevention controls already configured in a tenant — meaning it works within an organisation’s existing governance framework, not around it. Scout is currently available through private preview for Frontier organisations, with full deployment requiring Frontier enrolment and Intune policy configuration. Australian businesses on Microsoft 365 Enterprise or Business Premium SKUs enrolled in the Frontier programme can request preview access now.

Source: Microsoft 365 Blog, 2 June 2026 →

Published 28 May 2026 — Microsoft 365 Blog

Microsoft 365 Business with Copilot Launches 1 July 2026

Microsoft has announced two new product tiers launching 1 July 2026: Microsoft 365 Business Standard with Copilot and Microsoft 365 Business Premium with Copilot. For the first time, Copilot AI will be included directly in standard small business subscriptions — not as a separate, high-cost add-on.

The new plans include Copilot built into Word, Excel, PowerPoint, and Outlook, plus access to multiple AI models from both OpenAI and Anthropic via a model selector. Australian SMBs that have held off on Copilot due to pricing now have a clear date to reassess.

Source: Microsoft 365 Blog, 28 May 2026 →

Published 28 May 2026 — Microsoft 365 Blog

Copilot Now Connects to Over 1,000 Business Applications — Including Xero

The new Microsoft 365 Business with Copilot integrates with more than 1,000 third-party connectors, including Xero, Shopify, PayPal, Docusign, Asana, Jira, Canva, and BambooHR. This means Copilot can pull data from external systems and automate cross-platform workflows directly from within Microsoft 365 — without switching applications.

For Australian businesses, the inclusion of Xero as a named connector is immediately practical — the majority of Australian SMBs use Xero for accounting, and this integration opens up automated invoicing, reporting, and financial workflows through Copilot.

Source: Microsoft 365 Blog, 28 May 2026 →

Published 28 May 2026 — Microsoft 365 Blog

Redesigned Copilot Experience and New Work IQ Feature

Microsoft has also announced a redesigned Copilot interface across all Microsoft 365 apps, described as “cleaner, faster, and in the flow of work.” A new Work IQ feature aggregates team activity across the M365 suite, giving individuals and managers a unified view of where time is being spent.

Early data from a government pilot found users saving nearly an hour per day on summarisation and drafting tasks, with 61% reporting measurable improvements in the quality of their work output.

Source: Microsoft 365 Blog — New Copilot Design, 28 May 2026 →

Published 5 May 2026 — Microsoft 365 Blog, microsoft.com

Microsoft Research: Culture Drives 2× More AI Impact Than Individual Skills

An analysis of trillions of anonymised Microsoft 365 productivity signals — combined with a 20,000-person survey across 10 countries — found that organisational factors (culture, manager support, talent practices) account for twice the reported AI impact of individual capability (67% versus 32%). Among advanced Copilot users, 80% report producing work they could not have done a year ago; 49% of all Copilot conversations now involve cognitive work such as analysis, synthesis, and problem-solving.

The research also found a significant leadership gap: only 1 in 4 AI-using employees report clear leadership alignment on AI strategy. For Australian businesses planning Copilot rollouts, the finding suggests that investment in organisational change and manager capability will deliver more return than tool access alone. Microsoft also announced general availability of Microsoft 365 E7 (the Frontier Suite) and Microsoft Agent 365 for governing AI agents across the tenancy.

Source: Microsoft 365 Blog, 5 May 2026 →

Published 5 May 2026 — Microsoft 365 Blog, microsoft.com

Copilot Cowork Now Available on iOS and Android with Reusable Skills

Microsoft has launched Copilot Cowork on iOS and Android, enabling users to delegate tasks to Copilot from anywhere and track progress in the background. The update introduces Cowork Skills — reusable instruction sets that teams can build to standardise recurring workflows such as document creation, meeting coordination, and research. New native integrations include Power BI via Fabric IQ, Dynamics 365 (sales, customer service, ERP), Miro, and monday.com.

For Australian businesses already on Microsoft 365, the ability to build custom Skills for their own processes — and connect them via plugins to existing internal systems — reduces the barrier to automating repetitive work without specialist development resources. All capabilities are rolling out through the Frontier programme.

Source: Microsoft 365 Blog, 5 May 2026 →

Effective 1 July 2026 — Microsoft Licensing, microsoft.com

Microsoft 365 Pricing and Plan Changes Take Effect 1 July 2026

Microsoft has confirmed pricing and packaging updates across its Microsoft 365 commercial, nonprofit, and government tiers, effective 1 July 2026. Alongside pricing adjustments, Microsoft is adding new capabilities to existing plans — including Microsoft Defender for Office 365 Plan 1, Intune Remote Help, Intune Advanced Analytics, and Copilot Chat features. Microsoft 365 E5 customers will also receive Microsoft Security Copilot as part of their plan.

Existing customers remain on current pricing until their next renewal. Microsoft has committed to providing at least 30 days’ notice via the Microsoft 365 Message Center before changes take effect on a given tenancy. Australian organisations should review their current Microsoft 365 subscription against the updated plan inclusions before their next renewal date — the new bundled features may reduce or eliminate the need for add-on licences they currently purchase separately.

Source: Microsoft Licensing — Microsoft 365 Packaging and Pricing Updates →

What to Watch

The 1 July 2026 launch date for Microsoft 365 Business with Copilot is a significant moment for Australian small businesses. If your organisation is currently on Microsoft 365 Business Standard or Premium without Copilot, it is worth reviewing your current plan and comparing it against the new offerings before the changeover date.

Microsoft’s wider roadmap for 2026 includes agentic AI capabilities in Word, Excel, and PowerPoint — where Copilot can plan and execute multi-step tasks end-to-end, rather than just responding to individual prompts. These features are being released progressively throughout 2026.