Our customers are no longer asking what AI can do. They are asking how to deploy it securely, govern it consistently, and generate measurable business outcomes. Many are experimenting with agents and uncovering the challenges of moving from pilot to scale. But what separates Frontier Firms from companies experimenting with AI comes down to how they combine intelligence and trust—Frontier Firms use AI tools that connect with organizational data and knowledge and build on a secure, compliant and observable foundation. This is where our partner ecosystem makes the difference, helping customers turn experimentation into secure, governed deployments that drive frontier transformation.

Today we are announcing the Frontier Suite, called Microsoft 365 E7, along with updates to Microsoft 365 Copilot and Business Applications. Together with Microsoft Agent Factory, these announcements support the next phase of AI adoption.

Frontier Transformation news recap for partners

On March 9th at 8am Pacific, Microsoft hosted a digital event to share how Microsoft is leading Frontier transformation. You can view the replay on LinkedIn, and we’ve summarized the main announcements below.

Frontier Suite: Announcement ofMicrosoft 365 E7 which will GA on May 1
Agent 365: First introduced at Ignite,Agent 365 will GA on May 1
Copilot:Wave 3 innovations move beyond assistance to embedded agentic capabilities
Agents:Improve discoverability across surfaces, take action across apps, and scale confidently

Microsoft 365 E7

The introduction of Microsoft 365 E7, the Frontier Suite, combines productivity, AI, identity, and security into a single integrated offering, enabling organizations to scale intelligence and trust together. It equips employees with AI that shows up inside real work: email, documents, meetings, spreadsheets, and business applications while giving IT and security leaders the observability and governance needed to operate AI at enterprise scale.

The Microsoft 365 E7 suite brings together Microsoft 365 E5, Microsoft 365 Copilot, Agent 365, and Entra Suite into one cohesive offering. It is priced at $99 per user per month and will be generally available May 1, 2026. Partners will be able to leverage a set of promotional offers aligned to Microsoft 365 E7, designed to accelerate customer adoption of secure, agent enabled AI at scale. Read the Partner Hub Frontier Suite blog to learn more.

Microsoft Agent Factory

While Microsoft 365 E7 equips people to work differently, Microsoft Agent Factory (announced at Ignite) enables customers to build, deploy, and scale custom agents with comprehensive tooling. The Microsoft Agent Factory Pre-purchase Plan (P3) adds licensing flexibility across Copilot Studio, Microsoft Foundry, Fabric, and GitHub. It also provides role-based skilling, reducing adoption friction and increasing the value you deliver. Together, Microsoft 365 E7 and Agent Factory provide a clear path to move customers from early adoption to durable frontier transformation.

Agent 365

Agent 365 is the control plane that enables scale adoption of agents with proper oversight and guardrails. Agent 365 helps you move from agent experimentation to enterprise-scale operations with three core capability areas: observe, govern and secure. Agent 365 extends the management, security, and governance tools organizations already use for employees to agents, so they can stay in control as agents become part of daily work. Agent 365 will be generally available on May 1, 2026, priced at $15 per user per month.

Wave 3 of Copilot

Wave 3 marks a new version of Microsoft 365 Copilot, moving beyond assistance to embedded agentic capabilities which include:

Copilot now creates, edits, and refines content directly within Word, Excel, PowerPoint, and Outlook, (formerly Agent Mode) grounded in the context of your work via Work IQ. This experience is now accessed as “Edit with Copilot” in the tool menu of these apps. Word and Excel are generally available today, PowerPoint is rolling out now.
With Copilot Chat in Outlook, users can now draft and refine emails in chat, proactively manage customer calendars and RSVPs, and use the Outlook email widget in Copilot Chat to move from intent to action without leaving their flow of work.
Copilot Chat is the entry point for chat‑first creation and execution. From Copilot Chat, you can move directly from intent to action—asking Word, Excel, or PowerPoint agents to create content, take next steps, or execute a task—without copying and pasting between tools or switching contexts. Word, Excel, and PowerPoint Agents are generally available in the US (English), rolling out to rest of world in March (additional languages).
Users will be able to select Claude models directly in Copilot Chat alongside the next generation of OpenAI models, bringing leading models from multiple providers to our users. Available via Frontier as of today.
Built with Anthropic’s Cowork-class agentic capabilities, Cowork (Project Weave) integrates these advanced agent capabilities into Microsoft 365, enabling users to delegate real work—such as planning, multi-tool reasoning, and task execution. Coming to Frontier in March.
Work IQ connects signals from Microsoft 365 (documents, meetings, email, chat) and will soon access operational data inDataverse through Copilot in Dynamics 365 and Power Apps. Users with a Microsoft 365 Copilot license can experience Work IQ with Dataverse integration directly inside Power Apps, Dynamics 365 Sales, and Dynamics 365 Customer Service. Public preview by early April.
Microsoft 365 Copilot—and familiar agents like Researcher and Analyst—will be accessible directly within Dynamics 365 Sales, Customer Service, and Power Apps. This allows users to use Copilot capabilities while staying grounded in their operational systems. Copilot in D365 and Power Apps coming to public preview in March.

Agents

Organizations are scaling AI agents, and expectations are shifting. Employees now want agents to do more than answer questions—they want them to update records, submit changes, and move business processes forward. Today’s announcements make agents more powerful while improving discoverability and quality:

Agents can now bring the work apps organizations rely on into Microsoft 365 Copilot, turning chat into an interactive workspace. Employees simply prompt Copilot with the app they need, and an agent will bring that app's interactive experience directly into the conversation, enabling employees to review information and take action without leaving the conversation.
Supported apps include:
- Microsoft apps, like Outlook (schedule is now GA and compose is Frontier), Dynamics 365 Customer Service (public preview end of month), and Dynamics 365 Sales (public preview mid-April)
- Microsoft partner apps, including Adobe Express, Figma, Miro, Monday.com, and more (rolling out via the Microsoft 365 Agent Store now through mid-April)
- Custom LOB apps built via Power Apps (now in public preview)
If an organization needs an app that's not yet available, they can build an agent that supports it using MCP Apps or Apps SDK (rolling out this month in GA for desktop and web)
Agent Recommendations makes agents easier to use at scale by surfacing the best option directly in the flow of work. When users prompt Microsoft 365 Copilot, the system analyzes their intent and suggests an agent that’s already installed and approved by IT. Agent recommendation will GA in March.
Evaluate agents in Copilot Studio withAgent Evaluations. Catch problems early, reduce the risk of bad answers, and maintain quality as the agent evolves with structured testing—automated repeatable quality assurance testing for your agents. Agent Evaluations will GA in March.

Calls to Action

These advancements mark a significant milestone in AI-driven productivity. Seize this opportunity to re-engage with customers and elevate their transformation journey.

Register for the Digital Partner Airlift for CSP authorized partners and SI partners on March 31, 2026 to learn how Microsoft is enabling Frontier Firm Transformation. Select your preferred airlift and timeslot ataka.ms/ABSPartnerEvents.
Review theLeading Frontier Transformation partner blog and familiarize yourself with thelatest announcements
Share with your customers using pitch decks and FAQ available at the newPartner Hub Frontier Firm page
Review theFrontier Firm Partner Opportunity deck for guidance on how to engage customers by highlighting the business value of the new E7 Frontier Suite, Agent 365, and Microsoft Agent Factory

Resources

Frontier Firm

Microsoft 365 E7

Microsoft 365 E7 pitch deck
Microsoft 365 E7 launch kit
Coming soon! Check back for the following resources:
- UpdatedPartner Center Pricelist (April 1)
- Localized GTM launch kits in 13 languages (April 15)
- UpdatedPromo Readiness Guide (May 1)

Agent 365

Microsoft Agent Factory

Wave 3 of Copilot and Agents

Microsoft Tech Community Blog: Apps in Agents Blog | Edit with Copilot in Word, Excel and PowerPoint Blog | WorkIQ | Copilot in Outlook Blog
Building custom AI apps and agents pitch deck
AI Business Process | Frontier Transformation Partner FAQ
Apps in Agents Demo

Leading Frontier Transformation: Microsoft 365 E7 marks new milestone in AI-driven productivity and security