Microsoft has officially launched a new Excel feature called Copilot that integrates artificial intelligence directly into spreadsheet cells. This tool enables users to input natural language commands within formulas, allowing Excel to generate structured outputs like summaries, categorizations, or tables based on the underlying data. The functionality is currently available through the Beta channel for Microsoft 365 users with Copilot licenses on both Windows and Mac platforms. The latest update eliminates the need for complex formula construction, permitting users to execute commands such as "categorize these customer feedbacks" directly across cell ranges. The AI then produces structured outputs like organized tables or classification lists within the familiar spreadsheet interface. While Microsoft previously tested generative AI capabilities in Excel under the LABS.GENERATIVEAI framework earlier this year, this marks the first time such technology has been natively embedded into Excel formulas. Powered by OpenAI's GPT-4.1-mini - a lightweight yet powerful generation model optimized for Excel's performance requirements - the Copilot feature seamlessly integrates with existing functions including IF, SWITCH, LAMBDA, and WRAPROWS. Users can now create AI-driven data categorization tables while applying additional Excel logic layers to the AI-generated results. With direct integration into Excel's calculation engine, these outputs automatically refresh when source data changes, maintaining dynamic worksheets without requiring manual script re-execution or external tool refreshing. Microsoft emphasizes robust data security measures, assuring that all information processed through Copilot remains confidential and isn't utilized for AI model training. This design ensures enterprise users can maintain confidence in spreadsheet confidentiality during tool implementation. Despite these advancements, Microsoft advises against relying on Copilot for critical tasks requiring absolute precision such as financial reporting, legal documentation, or compliance-related activities. While the AI excels at data organization and analysis, potential error risks make it unsuitable for high-stakes operations. Current limitations include exclusive use of pre-existing spreadsheet data without internet/database connectivity, plus usage throttling (approximately 100 requests every 10 minutes or 300 hourly). These constraints aim to ensure smooth operation, with potential future expansion as confirmed by the technology leader.