Microsoft Copilot to Make Drafting in Word Smarter With Contextual References

Microsoft has announced a new update to its Copilot tool for Microsoft 365 which is set to bring improved drafting capabilities in Word. According to a new entry in the Microsoft 365 Roadmap , this update will let users reference additional resources, such as files, emails, meetings, and people, when drafting content.

Traditionally, Copilot helped users by working directly with selected content in a document. With this update, it now adds external resources to the writing process. For example, if relevant documents or references are available, Copilot can include that information directly in the draft, as reported by Windows Report.

This functionality will work similarly to drafting a blank document. Users will now have access to contextual resources alongside their selected content. It's planned for general availability in August 2025 and will be available on worldwide standard multi-tenant cloud instances for desktop platforms.

Just like when you're using Copilot to draft content on a blank line in your document, you can reference resources that provide context in addition to the content you've selected in your document.

This announcement comes after Microsoft has been expanding Copilot's capabilities across its suite of tools. In addition to this update for Word, Microsoft has also introduced new options like personalized podcasts and AI-generated video games through its Copilot Gaming Experiences.