TLDRs;
- Microsoft introduces “vibe working”, a new AI approach bringing advanced automation to Word, Excel, PowerPoint, and Outlook.
- Excel’s AI can now analyze data, apply formulas, generate charts, and summarize insights with a single natural prompt.
- Word and PowerPoint gain drafting and full-slide deck generation tools, designed for speed, customization, and transparency.
- Microsoft expands beyond OpenAI by integrating Anthropic’s Claude models, giving users more flexibility in AI-powered Office tasks.
Microsoft is taking another major step in integrating artificial intelligence across its productivity suite. With a new rollout, Word, Excel, and Outlook are receiving advanced AI-powered features under a concept the company calls “vibe working.”
The initiative is part of Microsoft’s rebranded Office Agent, a feature designed to make tasks such as data analysis, report drafting, and email organization as simple as typing a natural-language prompt.
The changes arrive as part of Microsoft’s push to position Office 365 as a leading consumer and enterprise AI hub, rivaling tools like OpenAI’s ChatGPT while expanding access to capabilities once reserved for corporate customers.
Excel Automates Data Analysis
Traditionally, Excel users have had to grapple with complex formulas, formatting, and chart-building to make sense of datasets.
With the new AI-driven Agent mode, tasks that once took hours can now be completed with a single prompt. For instance, typing “Analyze this sales data and create a trend report with visualizations” prompts Excel to automatically select the right formulas, generate sheets, build charts, summarize insights, and even check its own work for accuracy.
According to Microsoft, the tool already performs at 57.2% accuracy on SpreadsheetBench, outperforming rival agents like Shortcut.ai, OpenAI’s ChatGPT spreadsheet assistant, and Anthropic’s Claude. While still behind human analysts, who score around 71.3%, Microsoft sees the improvement as a major step toward practical automation in everyday workflows.
Word and PowerPoint Reinvented
In Word, Microsoft is introducing “vibe writing”, a feature that reduces the frustration of starting from scratch.
Users can now issue instructions like “Summarize customer feedback and highlight key themes in bold”, and Word will instantly draft a structured document. Writers can then refine the AI-generated draft, speeding up workflows without sacrificing editorial control.
PowerPoint’s update may be the most striking of all. Instead of just generating slide outlines, the new Office Agent builds complete, audience-ready decks that incorporate tone, web research, and formatting. As users type instructions, they see live previews of slide designs and content, allowing them to adjust on the fly. Microsoft emphasizes transparency here, showing each step of the AI’s process so users can audit and tweak results.
Outlook and AI Model Variety
Outlook is also receiving upgrades, enabling smarter email drafting, automated summaries, and task prioritization.
Microsoft is broadening its AI ecosystem beyond OpenAI, incorporating Anthropic’s Claude models alongside GPT-5. Business users can choose between deep reasoning models like Claude Opus 4.1 or more routine task engines such as Claude Sonnet 4, depending on their needs.
This signals a shift from Microsoft’s long-standing reliance on OpenAI, hinting at a more multi-model approach to productivity AI. The move ensures flexibility and competition within the company’s own ecosystem, strengthening Office 365 as a platform for both casual users and enterprise teams.
