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Microsoft unveiled a wave of new Copilot features on Thursday, adding collaboration tools, Google app integration, and an expressive AI avatar in its latest effort to strengthen its lead in the booming AI assistant race. The upgrades highlight Microsoft’s push to make Copilot a more versatile, context-aware companion for both personal and professional use, as competition from OpenAI, Anthropic, and Google intensifies.

Among the key enhancements, Copilot can now collaborate with up to 32 people simultaneously through a new feature called Groups, transforming it into a shared creative workspace. Users can co-write documents, brainstorm ideas, or track projects in real time. In addition, Copilot now possesses long-term memory, allowing it to remember key user details — such as ongoing tasks or personal preferences — for smoother and more personalized conversations.

Another standout capability is Copilot’s integration with Google and Outlook, alongside the ability to reason across multiple open tabs in Microsoft Edge. With user permission, it can summarize and compare content across sites, handle logistics like booking hotels, and even turn previous searches into structured “storylines” for revisiting earlier ideas.

Microsoft also introduced Mico, a digital avatar that changes color and expression to make AI interactions more natural. The move signals a step toward more emotionally intelligent AI companions, echoing trends seen in emerging “agentic” browsers such as Perplexity’s Comet, Google Chrome, and OpenAI’s Atlas.

On the reliability front, Microsoft said it has enhanced Copilot’s health-related responses, grounding them in verified medical sources to combat misinformation concerns. The updates are live across the United States and will expand to the UK, Canada, and other markets in the coming weeks.

With these new features, Microsoft continues its strategic evolution of Copilot — from a productivity assistant to a collaborative digital partner — underscoring how AI is reshaping not just work, but the very nature of interaction with technology.