This week brings Copilot UI updates across Teams and Outlook plus new OneDrive and SharePoint experiences, with a Copilot Chat in Edge endpoint change that may require network updates.

Microsoft 365 Copilot Chat in the Microsoft Edge sidebar is changing the endpoint used for the compliant Copilot Chat experience. Organizations that manage network allowlists/blocklists may need to update configurations to avoid Copilot Chat access issues. Review and update firewall/proxy rules before the stated deadline.

• Endpoint changes from outlook.office.com/hosted/semanticoverview/Users to cr.m365copilotapp.svc.cloud.microsoft
• Applies to Copilot Chat in Edge sidebar (commercial/compliant experience)
• Action is mainly for organizations with restrictive egress controls

Microsoft Purview Data Lifecycle Management will support retention policies/labels for OneDrive and SharePoint files based on how long they have not been accessed by anyone in the organization. This can significantly change how retention is scoped and may require review of existing retention strategies. Plan testing and update retention configurations as this rolls out.

• Applies to Microsoft 365 file types in OneDrive and SharePoint (other file types planned later)
• Enables inactivity-based retention targeting using 'last accessed'

Users will be able to self-serve connect certain external data sources (e.g., Jira Cloud, Confluence Cloud) to Microsoft 365 Copilot via sync Copilot connectors. This expands data discoverability in Copilot Chat and Microsoft Search and may require governance decisions. Admins should review connector controls and plan user guidance.

• User-initiated connection using existing credentials/permissions
• Makes connected content discoverable in Copilot Chat and Microsoft Search
• Requires alignment with organizational governance and connector policies

Administrators can opt in selected Windows and Mac devices to test the updated Microsoft 365 Copilot desktop app ahead of broader rollout. The updated app uses a Chromium-based architecture and unifies personal and work account experiences. Consider piloting with controlled user groups to validate compatibility and support readiness.

• Opt-in available starting August 18, 2026
• Chromium-based architecture to enable future enhancements
• Single app experience across personal and work accounts

Copilot capabilities previously available in SharePoint expanded preview are becoming available directly in OneDrive on the web. Users can analyze and act on file content using natural language without opening each file. Review licensing and user training implications for OneDrive-centric workflows.

• Enables finding, summarizing, analyzing, and creating from file content within OneDrive web
• Designed to reduce manual file-by-file review and folder navigation
• Respects existing file permissions

Microsoft is updating Copilot experiences in Microsoft Teams with simplified navigation and a more consistent, chat-centered design. The changes apply to both full-page Copilot and side-pane Copilot experiences. Prepare for user-facing UI changes and update internal documentation/training as needed.

• Simplified navigation and improved chat experience
• Applies across full-page Copilot and side pane throughout Teams

Microsoft is updating Copilot experiences in Microsoft Outlook with simplified navigation and a more consistent, chat-centered design. The changes apply to both full-page Copilot and side-pane Copilot experiences. Plan communications so users understand what changed and where key controls moved.

• Simplified navigation and improved chat experience
• Applies across full-page Copilot and side pane throughout Outlook

Users in Outlook for Mac and iPad will be able to pop out Copilot Chat into a separate floating window. This is a user experience change that may affect helpdesk documentation and training materials. No admin action is typically required beyond awareness and user guidance.

• General Availability rollout begins late August 2026, completes mid-September 2026
• Improves multitasking with Copilot Chat alongside Outlook controls

Power Platform is introducing a new cost control rule to enable or disable whether environments can draw from tenant capacity once their own credit allocation is exhausted or not set. The default will allow drawing from tenant capacity at the environment level. Admins should review defaults to prevent unexpected capacity consumption and align with governance policies.

• GA on August 26, 2026
• Default: 'Draw from the available capacity in my tenant' enabled
• Disabling limits credits an environment can use

Users with eligible Microsoft 365 Copilot licensing will get an AI-generated audio summary option for supported SharePoint News posts within the SharePoint app for Teams (Viva Connections). This is a new end-user capability that may require communications and accessibility review. No configuration changes were indicated, but admins should be prepared for user questions.

• GA rollout mid-August 2026 to early September 2026
• Available in the SharePoint app for Teams (Viva Connections)

The rollout of Copilot-powered create and edit experiences for SharePoint pages has been paused for some tenants. Organizations planning adoption should adjust timelines and avoid change communications that assume availability. Monitor Message Center for resumed rollout details.

• Feature helps authors generate and refine SharePoint pages using natural language
• Rollout paused for some tenants as of August 19, 2026