Microsoft rolls out GPT-5 in Copilot, introduces smart mode for adaptive AI

Copilot. AI models can exhibit quirks, hallucinations, or ethical blind spots. (Photo: Freepik)

By Margaret Wanjiru
Friday, August 8, 2025

Microsoft has officially integrated OpenAI’s newly released GPT‑5 model into its entire Copilot ecosystem, introducing a new “smart mode” designed to dynamically adapt AI responses based on task complexity.

The move marks one of the most significant upgrades to Microsoft's AI offerings since the launch of Copilot in 2023.

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The rollout brings the new GPT‑5’s advanced language reasoning capabilities to millions of users across Microsoft 365, GitHub, Azure, and Copilot Studio platforms.

With the new smart mode, Copilot can now automatically switch between lighter and heavier AI models depending on whether a user is asking for a quick reply or a deep, multi-step analysis.

“We’re entering a new era of productivity, where the AI understands not just what you ask, but why,” said Colette Stallbaumer, General Manager of Microsoft 365.

“With GPT‑5 and Smart Mode, Copilot becomes more intelligent, more intuitive, and more useful than ever before.”

GPT‑5’s integration enhances Copilot's contextual awareness and decision-making.

In Microsoft 365 apps like Word, Excel, and Teams, Copilot can now summarise long documents more accurately, analyse data with improved reasoning, and even draft responses based on broader organisational context.

For developers, GitHub Copilot now uses GPT‑5 to give better code suggestions, explain bugs more clearly, and understand large projects with many files.

Early testers report notable improvements in refactoring suggestions and the ability to hold longer conversations with the AI assistant.

The new smart mode is Microsoft’s answer to a common user challenge: not knowing which model to use for which task.

The feature smartly balances speed, cost, and how deeply it thinks by automatically choosing between GPT‑5 or smaller, faster models. It adjusts based on what the user is trying to do.

“Security, compliance, and reliability are non-negotiable for enterprise adoption,” said Eric Boyd, Corporate Vice President for Azure AI. “With GPT‑5, we’ve reached a point where AI can scale responsibly across industries.”

The upgrade is available immediately to Copilot users in Microsoft 365 enterprise subscriptions, GitHub Copilot paid tiers, Azure AI services, and developers using Copilot Studio.

Consumers using Microsoft Copilot in Windows and Edge will also benefit from Smart Mode, though GPT‑5 access may vary based on subscription level.