Short answer: On September 30, 2026, Microsoft introduced a new version of Copilot built to connect the tools people already use with the next generation of AI capabilities for building, customizing, and scaling AI at work. It's generally available today inside Chat and Cowork, with Code integration coming soon through the Frontier program. Alongside it, a new feature called Work IQ entered preview, grounding Copilot and AI agents in a company's real business data from Dynamics 365 and Power Platform, rolling out through October 2026.
What is the new Copilot?
The new Copilot isn't a separate product — it's an upgraded foundation for Microsoft's existing Copilot experiences. Instead of answering from general knowledge alone, it's designed to connect directly to the tools a business already relies on, then use next-generation AI capabilities to help build, customize, and scale AI across the organization.
It's live today in two places:
- Copilot Chat
- Microsoft Cowork
Code integration is coming next through Microsoft's Frontier program, an early-access track for upcoming Microsoft AI features.
What is Work IQ?
Work IQ is the part of this launch most relevant to businesses. It grounds Copilot and any AI agents in a company's actual operational data — pulling from:
- Microsoft Dynamics 365 (CRM and ERP data)
- Microsoft Power Platform (apps, workflows, and automations)
In practice, this means Copilot's answers can reflect real customer records, deal stages, or workflow states instead of generic responses. Microsoft says it brings deeper context, more consistent answers, and faster ways to act on tasks like contract renewals.
Work IQ is in preview starting September 30, 2026, with rollout continuing through October 2026 — so availability will vary by tenant over the next few weeks.
How is this different from the Copilot you already use?
| Previous Copilot | New Copilot (Sept 2026) | |
|---|---|---|
| Data grounding | Limited to connected files/emails | Extends to Dynamics 365 & Power Platform via Work IQ |
| Surfaces | Chat, Microsoft 365 apps | Chat, Cowork, Code (coming soon) |
| Business context | General | Grounded in live CRM/ERP data |
| Access | GA | GA (Chat, Cowork); Work IQ in preview |
Who should care about this?
- Sales and operations teams using Dynamics 365, since Work IQ can surface deal or renewal context directly in Copilot.
- Businesses already on Microsoft 365 Copilot, who get the new Chat and Cowork grounding automatically.
- IT admins planning rollouts, since Work IQ is staged through October rather than available everywhere at once.
Frequently asked questions
Is the new Copilot a separate purchase?
No — it's an update to existing Copilot experiences in Chat and Cowork, not a new SKU.
When does Work IQ become fully available?
It started in preview on September 30, 2026, with rollout continuing throughout October 2026.
Does this affect Microsoft 365 Copilot licensing?
Microsoft hasn't announced pricing changes tied to this update; it's a capability rollout to existing Copilot surfaces.
What is the Frontier program?
It's Microsoft's early-access track for upcoming AI features — Code integration for the new Copilot is coming through it next.
Bottom line
If you're already using Copilot Chat or Cowork, you'll see the new grounding automatically. If your business runs on Dynamics 365 or Power Platform, keep an eye out for Work IQ over the next few weeks — it's the part of this update most likely to change how Copilot actually helps day to day.
