Microsoft has launched Agent Mode for Excel and Word, along with Office Agent in Copilot chat, marking a significant expansion of AI capabilities in its productivity suite. The company calls this approach “vibe working,” comparing it to the concept of “vibe coding” where users create complex outputs through simple prompts.
Agent Mode represents a more powerful version of the existing Copilot features in Office applications. In Excel, the system can perform complex data analysis, create financial reports, and build loan calculators based on natural language prompts. According to Microsoft’s Sumit Chauhan, corporate vice president of the Office Product Group, Agent Mode delivers work “that a first-year consultant would do, delivered in minutes.”
The technology breaks down complex tasks into smaller steps using OpenAI’s reasoning models, showing users each action in real-time through a sidebar interface. Microsoft tested Agent Mode’s performance using SpreadsheetBench, a benchmark for evaluating AI capabilities in spreadsheet tasks. The system achieved an accuracy rate of 57.2 percent, outperforming other AI tools but falling short of human performance at 71.3 percent.
In Word, Agent Mode transforms document creation into what Microsoft describes as an interactive, conversational experience. Users can request documents like monthly reports, and the system will draft content, suggest refinements, and ask clarifying questions throughout the process. The AI can reference previous documents and emails to update reports with new data and insights.
Office Agent brings chat-based document creation
Separately, Microsoft introduced Office Agent in Copilot chat, powered by Anthropic’s AI models rather than OpenAI. This tool creates PowerPoint presentations and Word documents directly from chat prompts. The system conducts web research, clarifies user intent, and produces structured presentations with live previews of slides.
The use of Anthropic’s models represents Microsoft’s exploration beyond its primary OpenAI partnership. Chauhan explained that Microsoft is “looking at the entire family of models” to understand different strengths and build optimal combinations for their products. Anthropic’s models already power features in Microsoft’s research tools, GitHub Copilot, and Copilot Studio.
Microsoft positioned these developments as a way to differentiate Office from competing AI productivity tools. The company emphasized that its solutions create auditable, refreshable, and verifiable outputs, addressing concerns about AI reliability in business contexts.
Agent Mode for Excel and Word is available through Microsoft’s Frontier program for Copilot customers and Personal or Family subscribers, currently limited to web versions with desktop support planned. Office Agent is available in the United States for eligible subscribers through Copilot chat.
Additional source: The Verge