Microsoft has announced a new feature for Excel called the Copilot function, which brings artificial intelligence (AI) directly into spreadsheet cells. The tool allows users to type plain-language instructions into formulas, and Excel will generate results like summaries, classifications, or tables based on the data in the sheet. The feature is currently available to Microsoft 365 users in the Beta Channel on both Windows and Mac, provided they have a Copilot license.
With the latest update, instead of building complex formulas step by step, users can now enter commands like ‘Classify this customer feedback’ and apply them directly to a range of cells. The AI then produces structured outputs (ranging from clean tables to categorized lists) within the familiar spreadsheet grid. Earlier in 2023, the company tested generative AI in Excel with a feature called LABS.GENERATIVEAI, but this is the first time the technology has been fully built into Excel formulas.
The Copilot function is powered by OpenAI’s GPT-4.1-mini, a lightweight but capable generative model optimized for speed and reliability within Excel. The company stated that the function has been designed to work seamlessly with existing formulas like IF, SWITCH, LAMBDA, and WRAPROWS. For example, users can create a sheet that employs Copilot to categorize data and then apply additional Excel logic to the AI-generated results. Because the function is directly integrated into Excel’s calculation engine, the outputs automatically update whenever the underlying data changes. This ensures that spreadsheets remain dynamic and reactive without requiring users to rerun scripts or refresh external tools.
The company also claims that the system has been designed with data security in mind. According to Microsoft, any information that is processed through the Copilot function remains private and is not used to train AI models. This is meant to give businesses and organizations confidence that their spreadsheets will remain confidential when using the tool.
However, despite all these advancements, the company has warned users not to depend on Copilot for tasks that require absolute accuracy, like financial reporting, legal or compliance work, or other regulated activities. The company explained that although the AI can be useful for organizing and analysing data, it may still produce errors, making it unsuitable for high-risk or highly sensitive tasks. Currently, the Copilot function has some limits. It only works with the data already stored in a spreadsheet and can not bring in live information from the internet or company databases. There are also restrictions on how often it can be used (about 100 times every 10 minutes, or roughly 300 times per hour). According to the tech giant, these limits are in place to make sure the tool runs smoothly and reliably, and the company may expand them in future updates.