As of August 7, 2025, Microsoft has rolled out one of the most significant upgrades to its AI assistant yet. Copilot now runs on OpenAI’s GPT-5, unlocking more advanced reasoning, improved responsiveness, and expanded functionality across every platform where Microsoft operates. For business owners and Microsoft users, this update isn’t just about new features. It’s about redefining how AI can support daily workflows and decision-making.
What’s New with Copilot Version 5
Smarter Interactions
With GPT-5, Copilot uses a real-time router to select the right model for the job. That means if you’re asking a quick, straightforward question, Copilot provides a faster response using a high-throughput model. For complex scenarios, like analyzing financial data or drafting policies, it can switch to a deeper reasoning model that delivers more detailed and accurate results.
Sharper Reasoning
Businesses that rely on Copilot Studio to build custom agents will notice immediate improvements. GPT-5 brings better handling of ambiguous queries, more coherent multi-turn conversations, and stronger adherence to instructions. This translates into more reliable AI agents that can support nuanced business processes without constant human oversight.
Smart Mode for Every User
Microsoft has introduced a “Smart Mode” that automatically adapts Copilot to your task. Instead of manually selecting which model to use, Smart Mode does the work behind the scenes. Whether you’re drafting an email, creating a financial forecast, or troubleshooting IT issues, Copilot chooses the most capable option without slowing you down.
Everywhere You Work
According to Microsoft’s announcement, GPT-5 is available in Copilot across all markets and platforms including web, Windows, Mac, and mobile. This means businesses don’t have to worry about feature gaps depending on which device or operating system they use.
Enhanced Copilot Studio
For companies building advanced workflows or customer service bots, Copilot Studio now includes GPT-5 as a selectable model. This enables the creation of smarter, more complex agents that can handle business-specific logic, compliance checks, or personalized customer interactions.
What This Means for Businesses
For business owners, the GPT-5 upgrade is more than just a technical milestone. It’s an opportunity for businesses to streamline operations and improve efficiency. Here’s how:
Boost Productivity
Employees spend less time reworking drafts or clarifying instructions because Copilot’s improved reasoning delivers higher-quality output from the start.
Enhance Customer Service
Businesses can design agents in Copilot Studio that provide faster, more accurate support, freeing staff to focus on high-value interactions.
Simplify Workflows
Smart Mode reduces guesswork when leveraging AI across platforms, ensuring that employees get consistent, optimized assistance no matter the task.
Enable Smarter Decision-Making
With stronger reasoning and improved handling of complex data, Copilot can support strategic decisions with more confidence and clarity.
Next Steps
The integration of GPT-5 into Microsoft Copilot represents a turning point for AI-powered business tools. But with more powerful AI comes greater responsibility and security must remain a priority. AI tools interact with sensitive company data, and ensuring that information is protected is critical to maintaining compliance, trust, and operational stability.
That’s why Expera recommends starting with a third-party cybersecurity scan. Our scan requires no credentials and provides a clear picture of your current security posture. You’ll see where gaps exist and how to strengthen your defenses before adopting new AI capabilities.
Book your free cybersecurity scan with Expera today and make sure your AI-powered future stays secure.
