Copilot in Word: AI-Powered Drafting, Writing, Referencing, and more
- Graziano Stefanelli
- Jun 23
- 4 min read
Where You’ll Find Copilot in Word
Copilot is built right into Microsoft Word for easy access. When you open Word, you’ll see the colorful Copilot logo with the word “Copilot” on the Home tab, next to familiar tools like Editor and Dictate. If you highlight text, you’ll notice a small Copilot icon appears in the left margin. That’s your shortcut for editing or transforming selected text—just click it for quick actions like rewriting or summarizing.
Ways You Can Use Copilot in Word
Copilot is designed to help at every stage of your document work.
If you want to start a new draft, just click “Draft with Copilot.” A simple box appears right in your document. Here, you type your request—for example, “Write a summary about renewable energy policy”—and Copilot creates a draft right in place. If you want changes, you can keep, regenerate, or discard what Copilot suggests.
Editing is just as direct.
Select any text and click the Copilot icon in the margin. Instantly, you can rewrite, summarize, adjust the tone, or turn text into a table or list. The results appear in your document immediately, making it easy to fine-tune your message.
Need broader help or brainstorming?
Click the Copilot button in the Home tab and open “Chat with Copilot.” A panel pops up on the right for your open-ended questions, research, or ideas. Copilot’s replies show up in the chat, and you can insert or copy them wherever needed.
How to Reference Other Files and Items
One of Copilot’s most useful features is the ability to pull in details from your other documents.
When you’re in the “Draft with Copilot” box, you’ll see an option labeled “Reference a file.”
Clicking this brings up a drop-down menu showing your recent files. You can quickly pick a file from the list, or select “Browse files from cloud” to open your OneDrive or SharePoint and find exactly what you need—even if it’s not in your recent documents.
You can reference up to 20 different items—including Word docs, Excel sheets, PowerPoints, PDFs, emails, meetings, or an entire folder.
If you start typing the name of a file in the prompt box (for example, by typing “/”), the menu will also suggest matches, making it even faster to find what you want.
Once you add your reference, Copilot will use those files as context for its answer, letting you create drafts or summaries that automatically include details or facts from your chosen documents.
Tip: Files need to be in OneDrive or SharePoint so Copilot can access them.
This is especially handy for pulling recent numbers from a spreadsheet, official text from company documents, or facts from a PDF, all without leaving Word.
What’s New and Improved in 2025
Copilot keeps getting better, with new features that save time and add value.
The ability to reference up to 20 files, emails, meetings, or a folder makes Copilot’s answers much more robust and up to date.
When Copilot uses information from your references, it can now add clickable citations in your draft. Anyone reading your document can check the original source with one click.
The “Draft with Copilot” box appears right in your document, so you don’t have to go searching through extra menus.
If your document is sensitive or protected, Copilot will notify you or block certain actions—helping you avoid sharing private information by mistake.
Smooth integration with other Microsoft 365 apps means Copilot can use recent content from Excel, PowerPoint, or Outlook, so your reports and summaries always reflect your latest work.
How Copilot Saves You Time in Real Life
You don’t have to start from scratch.
Copilot quickly drafts reports, meeting notes, or emails, so you’re never stuck facing a blank page.
Brainstorm with bullet points? Copilot can turn those ideas into full paragraphs with just one prompt.
Long documents become manageable.
Instead of reading every page, ask Copilot to pull out main points or make a summary.
Lists and messy data can be converted into tables—just highlight and tell Copilot what you need.
Referencing files puts everything in one place.
Whether you need budget numbers from Excel, background from a PowerPoint, or a quote from a PDF, just use “Reference a file” to bring that info into your Word document instantly.
How Copilot Works with the Rest of Microsoft 365
Stay connected across your work apps.
Copilot draws on the latest data from Excel, PowerPoint, Outlook, and Teams to build richer documents and summaries.
When you open Word, Copilot may suggest prompts or tasks based on files you’ve worked on recently, making it easier to start common tasks like monthly updates or project reviews.
Who Gets to Use Copilot in Word
A current Microsoft 365 subscription with Copilot is required.
Copilot Pro is for individual users; Copilot for Microsoft 365 is for business and enterprise.
The newest features, including expanded referencing and Microsoft 365 integration, may require the latest Word updates and an active subscription.
Keep Word up to date to make sure you’re getting every improvement and new tool.
Tips for Getting the Best Results
Be clear in your instructions.
Copilot’s suggestions get better when your requests are specific—don’t hesitate to give details.
Explore all the ways Copilot can help: drafting, editing, and chat each cover a different part of your workflow.
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