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Copilot Wave 3 is the latest release cycle for Microsoft’s market-leading enterprise AI solution. With agentic capabilities, governance of AI agents, and agentic workflows embedded in M365 apps, Wave 3 is a major shift that turns Copilot into a governed execution layer inside M365 and elevates AI solutions for businesses in all industries.
What can Copilot Wave 3 do for your organization?
Here’s what changed and how to think about rollout and adoption.
Key takeaways:
Copilot Wave 3 is the third major release for Microsoft 365 Copilot.
Copilot Wave 3 brings agentic execution to Microsoft’s AI capabilities, fully embedded in M365.
Copilot Wave 3 introduces multi-model workflows, including access to Anthropic’s Claude Cowork.
Copilot Wave 3 introduces greater visibility and control over the execution of Copilot tasks, similar to what’s available in tools like Claude and Manus.
Microsoft Copilot Wave 3 is Microsoft’s third major release cycle for Microsoft 365 Copilot, announced March 9, 2026. It marks a major shift from Copilot as a prompt-based assistant to Copilot as a governed, agentic execution platform embedded directly inside M365 productivity apps.
Wave 3 isn’t one feature. It’s a broad architectural and product update that changes how work gets done with AI across Word, Excel, PowerPoint, Outlook, and Copilot Chat. It introduces agent-based, multi-step task execution (Copilot Cowork), deeper in-app editing, multi-model AI support, and enterprise governance controls across Microsoft 365.
When does Microsoft 365 Copilot Wave 3 become available?
Microsoft 365 Copilot Wave 3 doesn’t become available on a single, universal date. Instead, Microsoft began rolling it out starting March 9, 2026, with availability phased by feature, app, and licensing level through March and April 2026 and beyond.
Here are the details of the Copilot Wave 3 rollout.
Initial announcement and start of rollout: March 9, 2026.
General availability of some features: Starting in March 2026, Microsoft has begun rolling out capabilities like Edit with Copilot, Copilot Chat enhancements, and expanded Work IQ grounding to existing customers.
Frontier Program rollout of advanced features: Starting in March and April 2026, Microsoft is rolling out advanced features to certain customers. Copilot Cowork, Anthropic Claude models, and multi-model task execution are currently available through Microsoft’s Frontier Program, through the new E7 licensing tier for M365, or to certain enterprise clients.
How is Wave 3 different from previous releases of Microsoft 365 Copilot?
Previous Copilot waves (Wave 1 and Wave 2) focused mainly on:
Wave 3 moves Copilot from “helping” to “doing.” It enables Copilot to plan, execute, and carry work forward across multiple apps while staying inside Microsoft 365 security boundaries.
Here’s a brief table comparing Copilot Wave 1, Wave 2, and Wave 3.
Attribute
Copilot Wave 1 (2023)
Copilot Wave 2 (2024–2025)
Copilot Wave 3 (2026)
Core role
AI assistant layered on top of Microsoft 365 apps
More integrated assistant with improved context and cross‑app awareness
Agentic execution platform embedded directly in apps
Primary interaction model
Prompt → single response
Prompt → richer responses using broader context
Goal → multi‑step execution over time (Copilot Cowork)
Scope of work
Drafting, summarization, Q&A
Content creation + limited workflow help
End‑to‑end task delegation across apps
In‑app editing (Word, Excel, PPT)
Minimal (mostly sidebar/chat based)
Improved, but still mixed chat + app context
Native, in‑place editing inside documents and spreadsheets
Context awareness
Single document or prompt context
Cross‑file and meeting context (limited continuity)
Work IQ provides continuous awareness of files, meetings, email, chat, and decisions
AI execution style
Reactive
Semi‑proactive
Autonomous, long‑running, reviewable work
Model strategy
OpenAI only
OpenAI (expanded models)
Multi‑model: OpenAI + Anthropic Claude, including Claude Cowork
Governance & admin controls
Basic Microsoft 365 enforcement
Improved security alignment
Formal Copilot Control System (security, management, measurement)
Enterprise positioning
Productivity enhancement
Productivity + AI adoption phase
Core enterprise AI platform
What features and capabilities are included in Microsoft 365 Copilot Wave 3?
There are five pillars supporting Copilot Wave 3. Each one contributes significant new value to organizations that leverage the solution.
1. Copilot Cowork (agentic, long‑running work)
The headline Wave 3 capability is Copilot Cowork, which allows users to delegate entire pieces of work—not just ask for outputs.
With Cowork, Copilot can:
Break a goal into steps
Work across Word, Excel, PowerPoint, Outlook, and files
Run tasks for minutes or hours
Show progress checkpoints for review and steering
Create enterprise-governed documents as it goes
This turns Copilot into an execution engine, not just a chat interface.
2. In‑app “Edit with Copilot” experiences
Wave 3 embeds Copilot directly inside the core editing surfaces of Microsoft 365 apps, eliminating copy‑paste workflows. Here are some examples in various apps.
Word: Rewrite, restructure, summarize, or extend documents in-place using context from related files and meetings
Excel: Build formulas, analyze data, generate charts, and run multi‑step analyses directly in the grid
PowerPoint: Create and refine slides that respect org templates, branding, and layouts
Outlook: Draft and refine emails inside the compose window
Across all applications, Copilot’s edits respect Microsoft 365 permissions, sensitivity labels, and file storage rules.
3. Work IQ (deep contextual grounding)
Microsoft 365 Copilot Wave 3 is powered by Work IQ. This is Microsoft’s intelligence layer that grounds Copilot in:
Files
Meetings
Emails
Chats
Decisions
Organizational relationships
This allows Copilot to understand ongoing work, not just isolated prompts, thus enabling continuity across apps and tasks.
4. Multi‑model AI support (OpenAI + Anthropic)
Copilot Wave 3 introduces a multi‑model strategy:
OpenAI models
Anthropic Claude models, including Claude Cowork (via Copilot Chat and Copilot Cowork)
Automatic or user-selected model choice depending on task
This reduces vendor lock‑in and lets Copilot choose the best model for each job, from reasoning to output generation.
5. Enterprise governance and control
Wave 3 ships alongside the Copilot Control System, which formalizes AI management as an IT discipline:
Security and data governance (Purview)
Agent approval and permissions
Policy-based access controls
Usage, adoption, and impact reporting
For admins, Copilot is no longer an optional add‑on. It’s a managed platform inside the Microsoft 365 tenant.
Wave 3 also dovetails with the launch of Microsoft Agent 365. This is Microsoft’s new control pane that empowers admins to manage both Microsoft and third-party AI agents across the organization.
What are the benefits of Microsoft 365 Copilot Wave 3?
There are several key benefits of Copilot Wave 3 that apply across all use cases. Here are the most important ones.
1. Moving from AI assistance to AI execution
Wave 3 enables agentic, multi‑step work rather than one‑off responses. With Copilot Cowork, users can delegate an outcome (not just a prompt), and Copilot plans, executes, and progresses work across Word, Excel, PowerPoint, Outlook, and files over time—surfacing checkpoints for review and control.
2. Native, in‑app editing reduces friction and rework
Copilot Wave 3 embeds AI directly inside the editing surfaces of Microsoft 365 apps rather than relying on side panels or copy‑paste workflows. Users can draft, restructure, analyze, and refine content in place while keeping files governed and versioned in OneDrive and SharePoint.
3. Deeper contextualization through Work IQ
Wave 3 is powered by Work IQ, which grounds Copilot in live organizational context—documents, meetings, chats, email, decisions, and relationships—rather than isolated prompts. This allows Copilot to carry context forward across apps and tasks.
4. Greater control and visibility into AI process execution
Copilot Cowork tasks can run for minutes or hours, with visible progress, intermediate artifacts, and user checkpoints. Actions are transparent, observable, and stoppable, designed for enterprise accountability. This is a significant improvement over previous iterations of Copilot, which offered less control and process visibility than tools like Manus or Claude.
5. Multiple AI models under full governance
Wave 3 introduces a multi‑model strategy, allowing Copilot to use both OpenAI and Anthropic Claude models (via Copilot Chat and Cowork), with Microsoft selecting or allowing selection of the best model for the task. All this occurs under the full governance of the Copilot Control System and Microsoft Agent 365, as applicable.
How can we get started with Copilot Wave 3?
There are many ways to get started with Copilot Wave 3. The right path for your organization will depend on several factors:
Whether you’ve already implemented Microsoft 365 Copilot. If you have, your users may already have access to some Copilot Wave 3 features.
Whether your internal data environment is ready for Microsoft 365 Copilot. Whether you’ve already implemented Copilot, or you’re considering it, it’s important to prepare your environment to ensure proper data security.
Whether you’re part of Microsoft’s Frontier Program. If you’re part of the program, you may receive early access to Wave 3 features like Copilot Cowork, Anthropic Claude models, and multi-model task execution.
Whether you’re interested in Microsoft 365 E7 licensing. Microsoft is currently rolling out some features as part of the E7 package. All features will eventually become available in E7.
If you need help charting a course, agentic AI consulting is a great solution. You get a team of AI experts auditing your systems, surfacing use cases, implementing and integrating AI, and training your users. It’s a smart way to embed agentic AI into your operational workflows.
The takeaway: Leverage the power of Copilot Wave 3
Copilot Wave 3 expands what Microsoft 365 Copilot can do for organizations that want AI to move from assistance to execution. If you want to evaluate Wave 3 readiness (data governance, licensing, and prioritized use cases) we can help with an assessment and a practical rollout plan. We’ve helped 1,000+ customers on their technology journeys. Let’s take your next step with enterprise AI.
Brian Harmison is the CEO of Corsica Technologies, a leading IT solutions provider, with over two decades of experience in technology. He has held key leadership positions in renowned technology companies, specializing in IT strategy, cybersecurity, AI strategy, and managed services. His vision has driven Corsica Technologies’ growth and transformation, making it a trusted partner for managed IT solutions and managed cyber security services. Through collaboration, mentorship, and team development, Brian positions Corsica Technologies for continued success and innovation in IT and cybersecurity.
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