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In “What’s New in Copilot Studio in 2025” article, we will discuss about what are the new features added to the Microsoft Copilot Studio in 2025 and we will explain them separately.
In 2025, Copilot Studio continues to revolutionize how businesses and developers utilize generative AI for their workflows and customer experiences. With a range of powerful updates and enhanced capabilities, it offers a robust platform for innovation. Let’s delve into the new features that make Copilot Studio a must-have tool for 2025.
What’s New in Copilot Studio in 2025
In the below section we will find out the various new features in Copilot Studio:
Copilot is No More Copilot – It is an Agent Now
One of the most significant rebranding updates in 2025 is the transformation of “Copilot” into an Agent. This change reflects:
- A broader role for Copilot, transitioning from a mere assistant to a proactive problem-solver.
- Enhanced capabilities to manage autonomous tasks and provide deeper insights.
- A new name that aligns with its expanded functionalities and industry trends.

Microsoft Copilot renamed as agentThis shift signifies Microsoft’s vision to position the Agent as an indispensable partner in business and development ecosystems.
Authoring Canvas – Optimized Canvas On/Off
The Authoring Canvas in Copilot Studio now features an Optimized Canvas On/Off toggle, offering:
- Streamlined User Interface: A cleaner design for focused content creation.
- Customizable View Modes: Switch between optimized and full-featured layouts as per your workflow needs.
- Performance Boosts: Faster loading times and smoother interactions within the canvas.

This improvement caters to diverse user preferences, ensuring a seamless authoring experience.
Voice – Copilot Supports Voice and Speech Input
In late 2024, Copilot Studio introduced Voice and Speech Input capabilities, enabling users to:
- Interact with Copilot using natural speech commands.
- Dictate prompts and responses for hands-free operation.
- Leverage voice features for accessibility and convenience.

This addition enhances user engagement and opens up new possibilities for interactive AI applications.
Language Understanding Options
Copilot Studio now offers flexible options for Language Understanding, allowing users to:
- Utilize CLU (Conversational Language Understanding) as a service.
- Opt for NLU (Natural Language Understanding) from third-party providers.
- Seamlessly integrate these services in place of native Copilot Studio NLU.

Advantages of Enhanced Natural Language Understanding
This flexibility ensures that organizations can choose the best tools to meet their unique requirements while maintaining high standards of performance.
Copilot Studio boasts advanced Natural Language Understanding (NLU) algorithms, making its AI more intuitive and human-like. These enhancements allow it to:
- Accurately interpret user intent in complex scenarios.
- Handle ambiguous inputs with improved context understanding.
- Support multi-turn conversations seamlessly.
This improvement ensures that users can interact with AI in a more conversational and natural manner, reducing the need for rephrasing or clarifications.
Knowledge Source Suggestions (preview)
Now under the knowledge section, we can see a new section as a suggestion, which summarises and overviews the knowledge sources being used with their analytical report and suggestions for the new knowledge sources.

SharePoint Knowledge Source Improvement
The SharePoint Knowledge Source feature now supports selecting specific files and folders instead of the entire site URL. This improvement allows:
- Greater control over the data integrated into Copilot Studio.
- Enhanced customization for responses by focusing on relevant content.
- Reduced data processing time by excluding unnecessary files or directories.

This targeted approach improves efficiency and ensures that the AI leverages only the most relevant information.
Enable and Disable Chat Mode Speech & DTMF or Text
A new feature introduced in late 2024 is the ability to Enable or Disable Chat Mode Speech & DTMF (Dual-tone Multi-frequency) or Text. This capability allows users to:
- Switch between voice-based and text-based interaction modes effortlessly.
- Configure the interaction style based on the use case or audience preference.
- Provide a more versatile and user-friendly interface for end-users.

This feature ensures that businesses can cater to a wider audience, enhancing accessibility and user engagement.
Expanded Knowledge Source Integration
In 2025, Copilot Studio introduced expanded integration capabilities with external knowledge sources, including:
- Dataverse: Streamlined access to business data for creating context-aware responses.
- Third-Party APIs: Effortless connectivity with external APIs to fetch real-time information.
- Document Libraries: Integration with SharePoint and OneDrive libraries for customized responses based on organizational data.
These integrations enable businesses to tailor AI responses to specific use cases with precision.
Custom Prompt Designer with AI Assistance
Designing prompts has never been easier with the new AI-Assisted Prompt Designer. This feature provides:
- Pre-built Templates: Ready-to-use templates for various industries and workflows.
- Real-Time Feedback: AI-driven suggestions to optimize prompts for better performance.
- Prompt Analytics: Insights into prompt effectiveness to identify areas for improvement.
These capabilities empower users to craft highly effective prompts without requiring extensive expertise.
Multi-Language Support Expansion
Copilot Studio’s language support has expanded to include over 50 languages in 2025, catering to a global audience. Key highlights include:
- Enhanced translations with cultural and contextual accuracy.
- Support for regional dialects and industry-specific terminology.
- Language preference settings for both admins and end-users.

This makes Copilot Studio an ideal choice for multinational organizations looking to deploy AI across diverse linguistic regions.
Flow Integration Enhancements
Building on its integration with Power Automate, Copilot Studio now offers:
- Flow Templates: Pre-designed workflows for common automation scenarios.
- Advanced Triggers: Custom triggers based on events within Copilot Studio or integrated apps.
- Improved Debugging Tools: Step-by-step flow testing to ensure seamless execution.
These updates simplify workflow automation, making it accessible to users of all skill levels.
Configure Image Input – Enhanced Image Input Capability in Copilot Studio
Copilot Studio now introduces image input support, allowing users to upload images as part of their interactions. With this feature, the Copilot Agent can analyze the provided image using advanced AI-powered vision models, extract relevant details, and generate accurate descriptions. Whether it’s identifying objects, reading text from an image (OCR), or providing contextual insights, this new capability significantly enhances Copilot Studio’s versatility.
By integrating image recognition and analysis, businesses can streamline processes like document processing, automated visual support, and intelligent customer interactions, making AI more accessible and powerful than ever.
Watch this YouTube video on how image input works in Copilot Studio
Enable Enhanced search results in Copilot Studio
This configuration can provide improved search performance for Microsoft 365 Copilot tenants. Availability varies by data source.
To enable the enhanced search results in Copilot Studio, follow the below navigation:
Open your Copilot agent, go to the settings page, then go to the Generative AI section. From there, go to the premium features section, where you will get the option to enable enhanced search results for your Copilot agent as shown below:

Refer to this Microsoft documentation for more details on how it works: Knowledge sources overview – Microsoft Copilot Studio | Microsoft Learn
Analytics Dashboard 2.0
The revamped Analytics Dashboard provides deeper insights into Copilot Studio performance, featuring:
- User Interaction Heatmaps: Visualize how users interact with the AI.
- Usage Metrics: Track conversation volumes, response times, and resolution rates.
- Custom Reports: Generate reports tailored to specific business objectives.
This data-driven approach enables organizations to optimize their Copilot deployments effectively.
Contextual Memory Capabilities
With the introduction of Contextual Memory, Copilot Studio can now:
- Retain conversational context over extended interactions.
- Recall previous user preferences and interactions.
- Personalize responses dynamically based on historical data.
This feature significantly enhances the user experience, especially in customer support and advisory roles.
Copilot Studio Marketplace
The all-new Copilot Studio Marketplace provides a platform for developers and businesses to:
- Discover Pre-Built Solutions: Access templates, plugins, and integrations created by the community.
- Share Innovations: Publish and monetize custom solutions.
- Collaborate with Experts: Connect with professionals for tailored implementations.
The marketplace fosters a collaborative ecosystem that drives innovation and accelerates deployment.
Enhanced Security and Compliance
With data privacy concerns on the rise, Copilot Studio has introduced:
- Granular Access Controls: Fine-tune user permissions and data access.
- Built-In Compliance Checks: Align AI implementations with global regulations like GDPR and HIPAA.
- Audit Logs: Comprehensive logs to monitor and review AI interactions.
These features ensure that businesses can leverage AI responsibly and securely.
Developer-Friendly Features
Copilot Studio 2025 comes with several updates aimed at developers, such as:
- Enhanced SDKs: More robust tools for building custom solutions.
- API Rate Limit Management: Improved controls for managing API usage.
- Simulated Environments: Test AI deployments in sandbox environments before going live.
These updates make Copilot Studio more flexible and versatile for developers.
Conclusion
The 2025 updates to Copilot Studio demonstrate Microsoft’s commitment to pushing the boundaries of generative AI. With features like enhanced NLU, expanded integrations, a marketplace, and improved security, it’s clear that Copilot Studio remains at the forefront of AI innovation. Businesses and developers alike can leverage these advancements to create more effective and engaging AI solutions.
For more detailed insights, visit the official Microsoft Copilot Studio What’s New page.
Whether you’re a seasoned developer or a business owner exploring AI’s potential, Copilot Studio in 2025 has something for everyone. Start your journey today and unlock the future of AI-powered productivity.