Microsoft 365 now offers deeper integration with OneDrive in Windows

Back in October 2023, Microsoft revealed a major upgrade for OneDrive, with plans to integrate Copilot AI in the cloud storage service. In the same vein, Copilot support for OneDrive on the web was introduced in May 2024, and Microsoft 365 customers officially received the assistive AI tool just a few months ago in May 2025. Now, the Redmond tech giant has announced new features for Microsoft 365 customers who use OneDrive on their Windows PC.

Basically, Microsoft is integrating Copilot with OneDrive in File Explorer and the OneDrive Activity Center accessed from the taskbar in Windows. The company believes that this will enable customers to unlock the true potential of their cloud storage solution.

In terms of user experience (UX), users will be able to right-click on a file in File Explorer and hover over OneDrive in the context menu, which will show them a set of Copilot functions that they can leverage directly. Similarly, those utilizing the OneDrive Activity Center will be able to click the three-dots menu next to individual files to use Copilot.

Tangible functionalities in this integration include summarization of documents, generation of frequently asked questions (FAQs), and the ability to ask specific questions. Interestingly, those leveraging the Copilot experience in File Explorer will also be able to compare up to five files, which will result in an output table highlighting the differences between each document.

Speaking of files, it is important to note that photos and videos are not currently supported. File types supported by Microsoft 365 Copilot include:

  • Microsoft 365 documents (DOC, DOCX, PPT, PPTX, XLSX​, FLUID, LOOP​)
  • Universal formats (PDF, TXT, RTF​)
  • Web files (HTM, HTML​)
  • OpenDocument formats (ODT, ODP)

In order to take advantage of these functionalities, you should be a subscriber to Microsoft 365 Personal or Family, and your files must be stored on OneDrive.

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