Microsoft Adds Model Tuning to M365 Copilot to Build Domain-Specific AI

An AI-generated image showing a stylized flow of internal documents or folders moving into a neural network. Image credit: Adobe Firefly

Microsoft is adding a new feature to its Microsoft 365 (M365) Copilot assistant that transforms it into a domain expert. Announced at Microsoft Build 2025, the feature is called Copilot Tuning and is a low-code service allowing developers to train models on an organization’s own data without needing the assistance of data scientists.

Imagine a legal firm turning to a self-built AI agent to help craft the strongest case possible. The bot, built around the firm’s voice and expertise, can automate document creation or drafting arguments, powered exclusively by the institutional knowledge and client-specific context it’s trained on.

The Copilot Tuning setup window, where users can customize AI behavior for specific business tasks. Image credit: Microsoft
The Copilot Tuning setup window, where users can customize AI behavior for specific business tasks. Image credit: Microsoft

Microsoft claims that any data used to fine-tune M365 Copilot will remain secure within the platform and not be used to train the company’s foundation models.

The ability to customize Copilot to be trained chiefly on internal and relevant sources could be an enticing offering for companies that want to avoid hallucinations and provide personalized service to their customers. Without Copilot Tuning, these businesses may resign themselves to hiring developers to build specialty agents, which may not deliver results as good as M365 Copilot.

M365 Copilot Tuning is rolling out in June through Microsoft’s Copilot Tuning Program. It’ll be available for customers with at least 5,000 M365 Copilot licenses.

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This M365 Copilot update comes as the company pushes to foster human-agent collaboration in the workplace. According to its 2025 Work Trend Index findings, more companies want to be AI-first, which means embracing digital labor. Making M365 Copilot more robust is a way to help human workers prepare for this new professional reality.

New Microsoft 365 Copilot App Rolling Out

The addition of Copilot Tuning is the latest improvement coming to M365. In March, the company released AI-powered sales agents. More recently, last month, it previewed what it calls Wave 2 spring release. That update consists of a redesigned app for human-agent collaboration, a GPT-4o-powered image generation experience called Create, two deep reasoning agents—Researcher and Analyst, Copilot Search, and an AI-powered notebook feature that turns content and data into insights and action.

Most features from Microsoft 365 Copilot’s Wave 2 spring release are now generally available. The exceptions are the reasoning agents—set to roll out globally later this month via Microsoft’s Frontier program—and Copilot Search and Copilot Memory, which are scheduled to launch in June.

Featured Image: An AI-generated image showing a stylized flow of internal documents or folders moving into a neural network. Credit: Adobe Firefly

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