Microsoft 365 E5 now includes Security Copilot at no extra cost with 40+ new AI agents

Microsoft 365 E5 now includes Security Copilot at no extra cost with 40+ new AI agents
Derek Falcone / Nov, 20 2025 / Technology

On November 18, 2025, at Microsoft Ignite in Redmond, Washington, Microsoft Corporation didn’t just roll out updates—it rewrote the rules of workplace security and productivity. The company announced that Microsoft Security Copilot is now included at no additional cost for all Microsoft 365 E5 subscribers, a move that could reshape how enterprises defend against cyber threats. But the real headline? More than 40 new AI agents, built by Microsoft and its partners, are embedding themselves directly into daily workflows across Word, Excel, PowerPoint, Outlook, and even Windows 11. This isn’t a feature update. It’s a systemic shift.

From Reactive to Proactive: The Security Copilot Revolution

"We are not just announcing new features—we are redefining what’s possible," said Brad Smith, President of Microsoft Corporation, during the keynote. His words carried weight. For years, security teams have been drowning in alerts, chasing false positives, and reacting after breaches occur. Now, Microsoft’s new AI agents are designed to sit beside them—anticipating, analyzing, and acting before a threat materializes.

The foundation? Over 100 trillion daily signals processed by Microsoft’s cloud infrastructure. That’s not a rounding error—it’s the equivalent of monitoring every keystroke, file transfer, login attempt, and network anomaly across millions of enterprise endpoints. And now, with enterprise knowledge integration in preview, these agents can reason over your company’s internal data: contracts, emails, SharePoint files, even legacy systems. Suddenly, a security analyst doesn’t just get a threat alert—they get context. "It’s like having a co-pilot who’s read every policy, knows every user’s role, and understands your supply chain," said one insider familiar with the beta.

40+ Agents, One Goal: Automate the Mundane

Microsoft unveiled 12 new Microsoft-built agents across Microsoft Defender, Microsoft Entra, Microsoft Intune, and Microsoft Purview. These aren’t gimmicks. One agent can automatically isolate a compromised device, trace lateral movement across cloud environments, and generate a compliance report—all in under 90 seconds. Another scans phishing emails and cross-references them against internal communication patterns to flag impersonation attempts before they reach inboxes.

Then there are the 30+ partner-built agents—from CrowdStrike to Palo Alto Networks—that plug directly into Microsoft’s ecosystem. Think of them as specialized tools in a mechanic’s toolbox: one for ransomware forensics, another for cloud misconfiguration detection, a third for insider risk modeling. Together, they create a seamless security stack that doesn’t require juggling 15 different dashboards.

Agent Mode: Your Word Doc Just Got Smarter

But this isn’t just for IT teams. Microsoft 365 Copilot is now in Agent Mode across Word, Excel, and PowerPoint. Need a risk assessment for a vendor contract? Just type: "Find all clauses in this document that expose us to third-party liability and flag them." The agent pulls from your company’s legal repository, compares it against regulatory databases, and highlights red flags—all while you sip coffee.

And it gets weirder. The new App Builder and Workflows agents let employees create custom applications using plain language. "I want an app that tracks when contractors submit timesheets and sends reminders if they’re late," says a project manager in Chicago. Two minutes later, Copilot generates a working Power Apps interface, connects it to SharePoint, and sets up automated email triggers. No code. No IT ticket. Just results.

Windows 11 Gets AI Agents—On the Taskbar

Here’s where it gets personal. Microsoft announced "Ask Copilot (preview)" and "Agents on the taskbar (preview)" for Windows 11. Click the new icon—or type @—and you’re talking to a local AI agent that knows your files, your calendar, your team’s Slack history. Need to find the Q3 budget spreadsheet from last year’s merger? Ask. Need to draft a response to a hostile email from a vendor? Ask. The agent doesn’t just search—it synthesizes. And it runs securely, with data never leaving your device or cloud environment.

For enterprises, this isn’t just convenience—it’s control. Enter Windows 365 for Agents: secure, policy-controlled Cloud PCs where agents run in isolated environments, governed by your compliance rules. No more shadow IT. No more data sprawl. Just AI that obeys your policies.

What About Small Businesses?

Microsoft didn’t forget the underdogs. A new licensing model for small and medium businesses is coming, though pricing remains under wraps. Given that Microsoft 365 E5 currently starts at $57/user/month, expect a scaled-down version—likely $25–$35/user/month—with core AI agents, basic threat protection, and simplified compliance tools. It’s a smart play: SMBs are the most vulnerable to ransomware, and Microsoft knows it.

Why This Matters

This isn’t about AI hype. It’s about survival. Cyberattacks cost businesses $8 trillion globally in 2024, according to Cybersecurity Ventures. And the average breach takes 277 days to contain. Microsoft’s new agents cut that time to under 72 hours in early tests. For a mid-sized company, that’s millions saved.

But the bigger win? Empowerment. Security isn’t just for experts anymore. A marketing coordinator can now detect a phishing attempt. A finance assistant can auto-generate audit trails. A warehouse manager can build an app to track equipment maintenance—all without a single line of code.

What’s Next?

Rollout begins November 18, 2025, for existing Security Copilot customers with Microsoft 365 E5. Everyone else will see access gradually expand through Q1 2026. The Windows 11 taskbar agents arrive in early 2026. The SMB licensing model? Likely by March 2026. And Microsoft’s new Sora 2 integration for AI video generation? That’s coming to Copilot Create in Q2—meaning your next product demo could be a 30-second AI-generated video, not a PowerPoint slide.

One thing’s clear: the office is no longer just a place where people work. It’s a network of intelligent agents, working alongside them—quietly, efficiently, and securely.

Frequently Asked Questions

Is Microsoft Security Copilot really free with Microsoft 365 E5?

Yes. Starting November 18, 2025, all Microsoft 365 E5 subscribers receive Microsoft Security Copilot at no extra charge. This includes access to all 40+ AI agents, enterprise knowledge integration, and the full suite of Defender, Entra, Intune, and Purview capabilities. It’s bundled into the existing $57/user/month subscription, making it one of the most cost-effective enterprise security upgrades in recent memory.

Do I need special hardware to use these AI agents?

No. Most agents run in the cloud and require only a modern browser or Windows 11. However, for full functionality—especially with local taskbar agents and Copilot Studio—you’ll need a device with at least 8GB RAM and a relatively recent processor. Older machines may experience delays. Microsoft recommends Windows 11 23H2 or later for optimal performance.

Can these agents access my sensitive data?

Only if you allow it—and even then, with strict controls. Enterprise knowledge integration is opt-in and governed by your organization’s Microsoft Purview policies. Data never leaves your tenant unless explicitly shared with partner agents, and all interactions are logged and auditable. Microsoft emphasizes "privacy by design," with zero data retention on its servers beyond what’s necessary for real-time processing.

How does this affect IT teams?

It transforms them. Instead of firefighting, IT and security teams shift to strategy: designing policies, training users, and refining agent behavior. Early adopters report a 60% reduction in routine ticket volume. One Fortune 500 company cut its incident response team from 15 to 8 people—not by layoffs, but by reassigning staff to threat hunting and compliance innovation.

What’s the difference between Copilot and these new agents?

Copilot is your conversational assistant—it helps you write, summarize, and analyze. Agents are autonomous actors. They can execute tasks without prompting: scanning files, blocking threats, creating apps, or triggering workflows. Think of Copilot as a smart intern, and agents as specialized robots working 24/7 in the background. They often work together: you ask Copilot for help, and it calls on an agent to do the heavy lifting.

Will this work for remote workers?

Absolutely. All agents are cloud-native and function identically whether you’re in the office, at home, or in a café. Windows 365 for Agents even lets remote employees access secure, policy-controlled virtual desktops from any device. Security doesn’t weaken with distance—it strengthens, because every interaction is logged, encrypted, and governed by corporate policies regardless of location.