Microsoft 365 adds Anthropic Claude AI and launches $99 E7 plan

Microsoft 365 subscribers can now choose between OpenAI and Anthropic’s Claude models for AI‑driven tasks in Word, Excel and PowerPoint, while the new Microsoft 365 E7 tier bundles these capabilities with enhanced security tools at $99 per user per month [1][2].

Expanded AI in Office apps

Word, Excel and PowerPoint now expose “agentic” AI that can read a user’s files, meetings and emails to draft documents, run analyses or build presentations with corporate branding. In Word, the model choice appears in April, letting users pick OpenAI or Claude for major rewrites and structured briefs [1]. Excel prompts can generate multi‑year forecasts or pull web data for custom valuations, while PowerPoint’s “Create with Copilot” option already lets users generate slide decks from a single prompt [1]. These capabilities roll out across Windows, Mac and web for Microsoft 365 subscribers, with the Claude integration slated for PowerPoint later in the year.

New enterprise tier and governance tools

Microsoft’s $99 E7 plan bundles the upgraded Copilot, the new “Copilot Cowork” feature that handles multi‑step tasks, and a security suite that includes Entra identity tools and the Agent 365 admin console [2][3]. Copilot Cowork, powered by both OpenAI and Anthropic models, can automate routine chores such as scheduling emails and preparing meeting materials [3]. The Agent 365 console (also called Agent 360) automatically inventories AI agents, tracks adoption and flags potential cybersecurity risks, giving IT leaders a single pane of glass for governance [2]. Microsoft also announced a Work IQ API that will let third‑party developers embed the same contextual data engine into custom AI agents later this month [2].

What to watch

• April rollout – Claude model becomes selectable in Word, marking the first consumer‑facing integration of Anthropic’s technology [1].
• E7 adoption – Monitor enterprise uptake of the $99 tier as firms weigh the added AI and security features against the $60 E5 baseline [3].
• Work IQ API launch – The upcoming API could spur a wave of third‑party AI agents that extend Copilot’s context‑aware capabilities [2].

Microsoft’s move signals a shift from single‑model AI assistance toward a multi‑model, agent‑centric ecosystem that blends productivity with tighter governance. Whether enterprises will embrace the higher‑priced E7 tier or wait for broader third‑party integrations remains an open question.