[What and why:]

Copilot
experiences that have been available in SharePoint expanded preview are now
becoming available directly in OneDrive. Users will be able to find,
understand, analyze, create, and act on content using natural language, all
without leaving their OneDrive experience.

With extended file capabilities in Copilot in OneDrive,
users can work across their files without opening each one, manually searching
through folders, or stitching together insights on their own.

These capabilities are designed to help users move faster
from files to finished work while respecting the
permissions, policies, and governance controls already in place across
Microsoft 365.

Beginning on August 24 2026, these
capabilities will roll out to eligible tenants as an opt-out preview. As part
of this rollout, Copilot in OneDrive and Copilot in SharePoint will use the
same tenant-level preview controls.

[Rollout schedule:]

• Public Preview (Worldwide): We will begin rolling out on late August 2026 and expect to complete by late September 2026.
• General Availability (Worldwide): We will begin rolling out on late December 2026 and expect to complete by late December 2026.

[Impact on your organization:]

Who is affected

• OneDrive Web users with a Microsoft 365
  Copilot license
• Admins managing OneDrive

What will happen

• Users with a Microsoft 365 Copilot
  license will automatically see the updated Copilot entry point in OneDrive Web.
  This includes OneDrive Home, My Files, views such as Shared, People, and
  Meetings, and supported file preview experiences, including PDFs.
• >From these entry points, users can
  prompt Copilot in natural language to act on their files and folders. Depending
  on the context, users can ask Copilot to summarize files, answer questions
  about documents, compare content, analyze spreadsheets, create new content from
  existing files, or help find relevant information across their Microsoft 365
  context.
• This rollout extends Copilot file
  experiences across both SharePoint and OneDrive, giving users a more consistent
  way to work with content wherever their files are stored.
• For example, users can ask Copilot to
  create summaries, FAQs, project overviews, reports, presentations, Office
  documents, or HTML dashboards based on selected files, folders, or relevant
  work content.
• Copilot in OneDrive works within each
  user’s existing permissions. Users can only access, summarize, analyze, or act
  on content they are already authorized to view or edit.

Updated capabilities in Copilot in OneDrive can help
users:

Find the right files faster

• Users can ask Copilot to find files related to a project,
  topic, meeting, person, or recent activity. This reduces the need to remember
  exact file names, folder locations, or where a piece of work was last shared.

Understand files without opening each one

• Users can summarize documents, presentations, PDFs,
  images, meeting recordings, and other supported content types so they can
  quickly understand what a file contains and decide what to do next.

Get answers from file content

• Users can ask questions about their files, such as “What
  are the main action items in this deck?” or “What changed between these
  versions?” Copilot can help extract key information from content users already
  have access to across supported Microsoft 365 locations, including OneDrive,
  SharePoint, Teams, and Outlook.

Analyze files and folders

• Users can ask Copilot to analyze supported files,
  including spreadsheets and collections of documents, to identify trends,
  compare information, generate insights, or summarize what matters most.

Create new content from existing files

• Users can ask Copilot to create drafts, summaries, FAQs,
  project overviews, reports, presentations, Office documents, or dynamic HTML
  dashboards based on selected files, folders, or relevant Microsoft 365 context.

Share with more context

• Users can use Copilot to help share files and folders,
  check permissions, or update sharing settings, while staying in control of what
  is shared and with whom.

[Action required / Recommendations:]

No action is required to receive this update. Copilot in
OneDrive will update automatically for users with a Microsoft 365 Copilot
license.

Optional
steps to prepare:

• Inform users about the new Copilot
  capabilities and confirm they have a Microsoft 365 Copilot license.
• Configuration controls available
• Preview opt-in/opt-out: Admins
  can use PowerShell cmdlets to opt the entire tenant out of the preview.
  Find instructions and troubleshooting
  guidelines.
• Important: Copilot in OneDrive and Copilot in SharePoint use the same tenant-level
  preview controls. Organizations that opt out of the preview will disable both
  Copilot in OneDrive and Copilot in SharePoint. Separate controls for each
  product are not available.

Licensing controls

• Copilot in OneDrive is available to users with a
  Microsoft 365 Copilot license. Users without the required license will not have
  access to Copilot in OneDrive capabilities.

Permission and access controls

• Copilot in OneDrive respects existing file and folder
  permissions. Users can only use Copilot with content they are already
  authorized to access. Copilot does not grant new access to files, folders,
  li paries, sites, or other Microsoft 365 content.

Content governance controls

• Existing governance controls, including sensitivity
  labels, retention policies, sharing controls, and access restrictions, continue
  to apply. Copilot-generated responses are grounded in content the user has
  permission to access.

User action and confirmation controls

• For actions that modify content, such as creating,
  moving, renaming, sharing, or deleting files, Copilot will require user review
  or confirmation before completing the action. This helps ensure users remain in
  control of changes to their files and folders.

Additional information Get started with Copilot in OneDrive |
Microsoft Support

[Compliance considerations:]

• This feature provides a method of communicating with generative AI and supports the following capabilities: Purview Communication Compliance.
• This feature generates and stores customer data and supports the following capabilities: Purview eDiscovery, Data Retention, Purview Sensitivity Labels, Customer Lockbox.
• This feature supports Customer Key for encryption at rest.
• This feature follows its parent service’s data residency and processing commitments.
• This feature supports role based access control (RBAC).
• Customer administrators can control user access to this feature using the following interfaces: Licensing, PowerShell Cmdlet.
• The newly created objects appear in the following inventories: Agent 365 Registry.
• This product supports Microsoft Purview Data Loss Prevention (DLP) policies.