Microsoft updates Copilot with new features, animated character Mico

Microsoft’s Fall Update for Copilot introduces Mico, long-term memory, and third-party integrations, boosting AI interactivity, collaboration, and productivity across Microsoft apps and Edge, while making workflows smarter and more personalized

Microsoft rolled out a comprehensive update to Copilot as part of its Fall Update event, introducing features designed to make the AI assistant more personal, intelligent, and collaborative. The enhancements include a new animated character named Mico, long-term memory capabilities, improved integration with third-party platforms, and agentic functionality within the Edge browser.

Mico and smarter conversations

At the heart of the update is Mico, an animated avatar that gives Copilot a visual identity for the first time. Short for Microsoft Copilot, Mico reacts with facial expressions, gestures, and colour changes during voice chats, aiming to create more natural, empathetic interactions. Microsoft says this feature is intended to make AI “more supportive and relatable.”

The update also introduces a ‘Real Talk’ mode, which encourages Copilot to challenge user assumptions gently and adapt to conversational styles, fostering critical thinking. Meanwhile, the Groups feature turns Copilot into a collaborative workspace where up to 32 participants can share links, brainstorm, vote, split tasks, and let the AI summarise discussions to keep the team aligned.

Memory, integration, and edge enhancements

Copilot now supports long-term memory, allowing it to remember user details and preferences for future interactions. Users can view, edit, or delete this memory via the Memory & Personalisation settings, helping maintain continuity across conversations.

Integration with third-party platforms, including OneDrive, Outlook, Gmail, Google Drive, and Google Calendar, enables Copilot to search and reference documents, emails, and events seamlessly. Specialized tools such as Copilot for Health provide verified medical guidance and doctor recommendations, while Learn Live offers interactive, voice-driven educational sessions for students.

In Microsoft Edge, Copilot gains agentic capabilities, allowing it to summarise tabs, perform actions like booking hotels or filling forms, and organise browsing sessions through the Journeys feature. Privacy controls remain opt-in. Additionally, Copilot Search now combines AI-generated insights with traditional web results in a unified, clearly cited interface.

This update positions Microsoft Copilot as a more personal, collaborative, and intelligent assistant, bridging productivity and AI interactivity across work, learning, and daily tasks.