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Wednesday 27th August 2025

It’s been a huge few months for Microsoft 365 Copilot. In July, Microsoft introduced Copilot Memory, a feature that makes Copilot feel a lot more personal and in sync with the way you like to work. And just a few weeks ago, they switched on the ability to use GPT-5 in M365 Copilot, giving it a serious upgrade in reasoning power, context awareness, and productivity skills

These updates are some of the most significant we’ve seen for Microsoft 365 Copilot to date. We’re confident you’ll enjoy them just as much as we do, so keep reading as we break down what’s new, what it means for you, and how you can start using it today.

What is Copilot memory?

We often get asked, “Can Copilot sound more like me?” or “Will it remember the way I like things done?” The new Memory feature is how it does both.

Think of it like this: instead of starting from scratch every time, Copilot can now carry things forward. If you’ve told it once that you prefer bullet points for summaries, or that you’re leading Project Alpha, it remembers that detail for next time. In the past, Copilot could sometimes feel a little like Dory from Finding Nemo,  great in the moment, but quick to forget. Now, it can hold onto the important details across sessions so you don’t have to keep repeating yourself.

Here’s how it works: When you mention something Copilot thinks might be useful later (like your tone preference or a project name), you’ll see a little “memory updated” note in chat. Those details are saved in Settings > Memory, where you can review, edit, or delete them at any time. If you’d rather Copilot not remember anything, you can switch Memory off completely. We think it’s the closest Copilot has come to feeling like a real productivity assistant so far, one that truly remembers your way of working, and helps you get things done the way you’d actually do them.

We think it’s the closest Copilot has come to feeling like a ‘personal’ productivity assistant so far, one that truly remembers your way of working, and helps you get things done the way you’d actually do them.

“I hated how Copilot would always default to American English. Now with Memory, I’ve set it to use New Zealand English with common Te Reo Māori vernacular. I’ve shown clients how to do the same, and it genuinely helps me draft content that feels authentic.”
Lydia Simpson - Principal Consultant at Engage Squared

Custom instructions vs memory: what’s the difference?

Both features help Copilot feel more personal, but they work in slightly different ways:

  • Custom Instructions – you set the rules up front and it’s more like filling out a preferences card e.g “Use UK English spelling,” “Keep things concise,” “Reply in paragraphs.” Once saved, these instructions apply across your Copilot experience.
  • Memory – Copilot learns as you go. It can pick up details naturally in conversation like “I’m working on Project XYZ”  and remember them for next time. You’ll see a “memory updated” note whenever something is saved, and you can edit or delete memories in Settings.

Copilot personalisation options including memory and custom instructions are available in your Copilot settings

GPT-5: tackling bigger jobs with ease

GPT-5 is the latest AI model from OpenAI and can be turned on to try when using Microsoft 365 Copilot. It is faster, more accurate, and much better at handling complex, multi-step tasks. The upgrade landed immediately for Copilot users, on the very same day GPT-5 launched in ChatGPT, so there was no risk of looking on enviously while others got to play with the new toy first.

The improvements are easy to spot. Drafts read more naturally, conversations stay on track for longer, and Copilot can now process much larger files in one go, whether that is a long report, a multi-sheet spreadsheet, or a marathon email chain. Behind the scenes, GPT-5 also adapts to the job at hand. Quick prompts get snappy answers. Bigger requests get the deeper reasoning treatment. You don’t have to do a thing, Copilot quietly makes the call for you based on your prompt.

Putting GPT-5 to the test

I saw the difference when planning an event for our all-staff retreat. We had 110 people joining from four countries and across multiple practice areas. The final job on my list was creating the table plan for our agent hackathon. I knew I wanted a mix of practices and countries on every table, so people could connect with their colleagues they might not usually work with! Though the thought of manually balancing all those combinations felt overwhelming (and not in the fun, event-planning kind of way).

So I handed it over to Copilot with GPT-5 turned on. In 54 seconds, it took the spreadsheet, did the hard work, and produced a perfectly balanced plan. What would have taken me an hour was now done before I’d even taken a sip of my coffee, and after a careful review – I didn’t need to change a thing.

That is the power of GPT-5 in Copilot. If you haven’t already, test it out and see what heavy lifting it can take off your plate!

An example of the reasoning steps in Copilot with GPT-5 used to create my table plan

“GPT-5 can handle much larger documents and remember more from earlier in a session. A good example is analysing a full report, an email chain, or an entire spreadsheet without losing track. You can upload a full Excel workbook with multiple sheets and GPT-5 will summarise trends across all of them in one go. GPT-4 would likely miss details or need multiple prompts”
Linda Brunetti - Senior M365 Consultant at Engage Squared

Like what you see?

With GPT-5 and Memory, Microsoft 365 Copilot has levelled up. It is sharper, more personal, and much more capable of handling the jobs that actually make a difference to your day. Whether it is drafting in your tone, remembering your preferences, or crunching through that giant spreadsheet you have been avoiding, Copilot is starting to feel less like a tool and more like your true partner.

This is just the beginning of how Copilot and AI can reshape the way we work. If you are curious about how to get the most out of these updates, or want to see what Copilot could do for your organisation, get in touch, we would love to help you explore what is possible!

About the author

Nadine Lalor is the Digital Marketing Lead at Engage Squared. With a background in web design, digital marketing, and strategic communication, she has spent the last decade shaping impactful marketing strategies and managing projects. Always seeking faster, smarter ways to get things done, Nadine loves experimenting with AI tools. Outside of work, she’s a mum to two young daughters who keep her busy with endless adventures!