October 28, 2025: Microsoft announced a significant update to Microsoft 365 Copilot that enables users to build custom apps and automate workflows using natural language. This new functionality introduces two components – App Builder and Workflows – which allow employees to create applications and set up automation just by describing what they need. These capabilities are integrated into the Microsoft 365 Copilot experience, meaning any apps or workflows created are secure by design (respecting your organization’s permissions and policies) and stored within your Microsoft 365 environment.
This update is available starting October 28, 2025. Initially, the new features are offered to customers in Microsoft’s Frontier program (an early access preview for Microsoft 365 Copilot).
Broader availability is expected to follow, but Frontier participants can start using App Builder and Workflows right away.
What is Microsoft 365 Copilot
Microsoft 365 Copilot is an Artificial Intelligence (AI) powered assistant for Microsoft 365. It integrates with the Microsoft 365 suite (for example, Word, Excel, PowerPoint, Outlook, and Teams) to help users accomplish tasks through natural language conversations. In practical terms, Copilot can draft content, summarize information, analyze data, answer questions, and now even build apps or workflows – all based on simple prompts from the user. It leverages advanced generative AI technology while staying grounded in your organization’s data and security framework.
Key Features
The October 28, 2025 update brings several key features to Microsoft 365 Copilot:
- App Builder: A new Copilot component that helps users create custom applications in minutes without coding or database setup. You simply describe the app you need (for example, a project tracker or a team dashboard), and Copilot will build it. The App Builder can generate interactive elements like dashboards, charts, forms, and lists, all grounded in your Microsoft 365 data (documents, spreadsheets, presentations, etc.). You can preview and refine the app through a conversational interface without leaving Copilot. When you’re satisfied, you can share the app easily via a link, just as you would share a document. (Behind the scenes, Copilot can even use Microsoft Lists to store any new data the app might need, so you don’t have to set up a database.)
- Workflows: A new Copilot feature that automates tasks and processes across Microsoft 365 applications through natural language commands. Users describe what they want to automate (for example, “send a Teams reminder every Monday for upcoming deadlines” or “organize incoming emails into folders and notify the team”), and Copilot generates a workflow to accomplish it. These automated flows can span multiple apps like Outlook, Teams, SharePoint, Planner, and more – all coordinated by Copilot. As Copilot builds the workflow, you can see each step in real time, making it easy to follow what’s happening. You can ask Copilot to adjust or add steps in the same conversation if the workflow needs tweaking. The Workflows feature is designed for everyday users (no need to be a developer) but is built on the same robust infrastructure that powers Microsoft’s enterprise automation, ensuring reliability and security.
- Integrated and Secure Experience: All the new Copilot-built apps and workflows run within the Microsoft 365 cloud, adhering to enterprise-grade security and compliance standards. Copilot respects existing user permissions and role-based access controls, so people will only see or do what their normal rights allow. Administrators have centralized management for these AI-powered tools – in the Microsoft 365 admin center, they can control who in the organization is allowed to create or share Copilot apps, flows, or agents. This governance ensures that any solution created with Copilot remains compliant with organizational policies and can be monitored and managed just like other Microsoft 365 services.
(Note: In addition to App Builder and Workflows, Microsoft 365 Copilot also includes a lightweight Copilot Studio experience. This allows creating custom “agents” – tailored AI helpers for specific tasks or departments – by simply describing their purpose. Users can start with Copilot’s built-in agent builder, and IT teams can later extend these agents using the full Copilot Studio for more advanced capabilities. All of these also benefit from the same security and governance features mentioned above.)
Licensing
Microsoft 365 Copilot is offered as an add-on service to eligible Microsoft 365 enterprise subscriptions. Organizations must have the proper Microsoft 365 licenses and then purchase Copilot licenses for their users. The new App Builder and Workflows features are part of the Copilot service (there is no separate charge for these features beyond the Copilot license itself), but at launch they are limited to those in the Frontier preview program. As Microsoft expands Copilot’s rollout, these capabilities should reach a wider audience of licensed customers.
Licensing for Microsoft 365 (and Copilot in particular) can be complex. It’s important to ensure you have the correct licenses and meet the requirements to use Microsoft 365 Copilot and its latest features. For expert guidance tailored to your situation, it is recommended to consult SCHNEIDER IT MANAGEMENT. Our licensing experts provide advice on how to obtain and deploy Microsoft 365 Copilot in compliance with Microsoft’s licensing policies.
More information
For more details about this update, you can refer to the official Microsoft 365 Blog announcement (October 28, 2025):
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