Excel Just Got Smarter! Now you can create and edit spreadsheets using simple AI prompts with Microsoft Copilot

August 21, 2025 - By Muzammil Mehmood

Microsoft Excel Introduces AI Copilot to Write and Automate Spreadsheets

Microsoft has taken Excel to the next level with the introduction of an AI-powered Copilot function that can automatically generate, classify, and summarize spreadsheet data using natural language prompts. This new capability works much like Google Sheets’ smart fill feature, but with deeper integration and advanced AI support.

How the AI Copilot Works

The feature allows users to type a formula such as:
=COPILOT("Classify this feedback", D4:D18)

With this simple command, Excel instantly fills in AI-generated content directly into the specified cells. From classifying customer feedback to summarizing large datasets or even generating product descriptions, the tool is designed to save time and reduce manual effort.

Example Use Cases Shared by Microsoft

Classify text: =COPILOT("Classify this feedback", D4:D18)
Summarize content: =COPILOT("Summarize this feedback", A2:A20)
Generate descriptions: =COPILOT("Create a description for this product based on its specs", B2:B8)

The AI function is powered by OpenAI’s GPT-4.1-mini model and succeeds the earlier “LABS.GENERATIVEAI” function that was tested in Excel back in 2023.

Integration with Traditional Excel Functions

One of the biggest strengths of Excel Copilot is that it works alongside standard formulas such as IF, SWITCH, LAMBDA, and WRAPROWS. This allows users to create advanced workflows by combining AI-driven automation with traditional logic-based formulas, opening the door to smarter and more dynamic spreadsheets.

Key Limitations to Know

While the feature is powerful, Microsoft has highlighted some limitations:

It cannot pull or process data outside of the spreadsheet.
Users are restricted to 100 calculations every 10 minutes.
It is not recommended for high-precision or sensitive tasks, such as financial compliance or legal data, due to the possibility of inaccurate responses.

Availability and Future Plans

According to Microsoft, all data processed through Copilot remains confidential and is not used to train AI models. The feature is currently available in the Beta Channel for Windows and Mac users who hold a Microsoft 365 Copilot license.

Looking ahead, Microsoft plans to refine the feature with future updates — including improvements to the underlying AI model and potential support for web-based data access, making Excel even more powerful for professionals and businesses.