Microsoft Copilot in Word lets you draft documents from a simple prompt, rewrite sections that are not landing, summarise long reports in seconds, adjust your tone, and compare two versions of a document side by side. You need a Microsoft 365 Copilot licence to access these features inside Word on the web or the desktop app. Copilot does not replace your judgement, but it removes the blank-page problem and significantly speeds up the editing process for busy teams.

What Copilot in Word Can Do

Copilot in Word is an AI writing assistant built directly into your document. It sits in a panel on the right side of the screen and responds to natural language instructions. Here is what it can handle:

• Draft from a prompt: Generate a full document based on a short description.
• Rewrite: Select a section and ask Copilot to improve it, clarify it, or rephrase it entirely.
• Change tone: Make content more professional, more concise, or easier to read.
• Summarise: Condense long documents into a clear overview.
• Compare documents: Ask Copilot to identify differences between two files.
• Suggest improvements: Request feedback on structure, clarity, or specific sections.

It is genuinely useful. It is also imperfect, so everything it produces needs a human review before it goes anywhere important. We will cover that in detail below.

Licence Requirements

Copilot in Word requires a Microsoft 365 Copilot licence on top of your existing Microsoft 365 subscription. This applies to all users who want access to the Copilot panel in Word, Excel, Outlook, and Teams. If you are unsure whether your current plan includes Copilot, talk to our team and we can check your licence quickly.

How to Draft a Document from Scratch

Starting a new document with Copilot is straightforward. Open a blank Word document, click the Copilot icon in the toolbar or the draft prompt that appears in the body, and type your instruction. Copilot will generate a first draft based on what you describe.

Step-by-step:

1. Open Word and start a new blank document.
2. Click the Copilot button in the Home ribbon or click the inline prompt that appears in the document body.
3. Type a clear, specific instruction and press Enter.
4. Review the draft, accept sections you are happy with, and refine anything that needs work.
5. Use follow-up prompts to adjust tone, length, or structure.

Example prompts to try:

• “Draft a 500-word proposal for IT managed services targeting a 30-person accounting firm. Include an overview, key services, and a call to action.”
• “Write an HR policy on remote work. Cover eligibility, expectations, equipment, and data security. Keep the tone clear and professional.”
• “Create a follow-up email to a client after an initial discovery meeting. Thank them for their time and summarise the next steps we discussed.”
• “Convert these meeting notes into a structured action item summary with owner names and due dates.”

Be specific. The more context you give Copilot, the more useful the output will be. Vague prompts produce generic results.

How to Rewrite a Section That Is Not Working

Sometimes the structure is right but the words are not. Copilot makes rewriting fast. Select the text you want to improve, right-click and choose Rewrite with Copilot, or highlight the text and use the Copilot panel to give a rewrite instruction.

Example prompts:

• “Rewrite this paragraph to be clearer and more direct. Remove any jargon.”
• “This section is too long. Shorten it to three sentences without losing the key point.”
• “Rephrase this introduction so it leads with the business benefit rather than the technical detail.”

Copilot will offer alternative versions. You can accept, reject, or ask for another variation. It is faster than staring at the same paragraph for 20 minutes.

How to Change the Tone of Your Document

Tone matters enormously in business writing. A proposal that sounds too casual loses credibility. An internal update that reads like a legal contract loses the team. Copilot handles tone adjustments reliably.

Example prompts:

• “Make this more professional and formal. The audience is a CEO.”
• “Simplify this for someone who has no technical background. Use plain language.”
• “Make this more concise. Cut it by about a third without losing the key message.”
• “Rewrite this to be warmer and more human. We want it to feel approachable, not corporate.”

This feature alone is worth using regularly. Most business writers default to one tone and struggle to shift it when the audience changes.

How to Summarise a Long Document

Open the document you want to summarise, click the Copilot panel, and ask for a summary. Copilot reads the full document and returns a structured overview. This works well for long reports, contracts, and policy documents where you need the key points fast.

Example prompts:

• “Summarise this document in five bullet points. Focus on the key recommendations.”
• “Give me an executive summary of this report in 150 words.”
• “What are the main risks mentioned in this document?”

Copilot references specific sections and can often cite where it found information. This makes it easy to verify the summary against the source material, which you should always do.

How to Compare Two Documents

Comparing document versions manually is slow and error-prone. Copilot can help by identifying changes and differences when you describe what you are comparing.

Open one of the documents, launch the Copilot panel, and reference the second file by uploading it or by referencing a file stored in SharePoint or OneDrive.

Example prompt:

• “Compare this document with [file name]. What are the main differences between the two versions? Highlight any changes to the scope, pricing, or terms.”

This is particularly useful for reviewing updated contracts, policies with tracked revisions, or tender documents across multiple submissions.

Real Business Examples

Here is how Australian professional services teams are using Copilot in Word right now:

• Writing a proposal: A consultant drafts a 20-page managed IT services proposal in under two hours. Copilot creates the structure and first draft; the consultant refines the specifics and pricing.
• Creating an HR policy: An HR manager drafts a work-from-home policy in one session. Copilot generates the framework, and the manager adjusts language to match company culture and any legal requirements.
• Drafting client emails: A project manager uses Copilot to write a professional follow-up after a difficult client meeting. The email is clear, measured, and takes two minutes instead of twenty.
• Converting meeting notes: A team leader pastes rough meeting notes into Word and asks Copilot to turn them into a clean summary with action items. The output goes straight into the project tracker.

These are not hypothetical scenarios. They are real time savings happening in businesses that have deployed Microsoft 365 Copilot properly.

What Copilot Gets Wrong (And Why You Must Always Review)

This section is important. Copilot is a powerful drafting tool, not a reliable source of facts. It can and does make mistakes. Here is what to watch out for:

• Invented details: Copilot may include specific figures, dates, or facts that sound plausible but are fabricated. Always verify any data before it leaves your organisation.
• Tone mismatches: It does not always know your audience. What it considers “professional” may not match your brand voice.
• Legal and compliance errors: Copilot has no knowledge of your specific industry regulations. Never use AI-drafted legal, HR, or compliance content without review by the appropriate person.
• Generic structure: First drafts often follow a predictable template. Push it to be more specific using follow-up prompts.
• Overlong content: Copilot tends to write more than necessary. Edit down before sending anything to a client.

The rule is simple: Copilot drafts, humans finalise. Treat every output as a starting point, not a finished product. The time you save in drafting should be reinvested in quality review, not skipped.

Get Copilot Working Across Your Team

If your team is not yet using Copilot in Microsoft 365, or if you have the licences but low adoption, we can help. Otto IT helps professional services businesses deploy, configure, and train teams on Microsoft 365 Copilot so it delivers real productivity gains rather than sitting unused.

Book a conversation with our team to find out how to get the most out of your Microsoft 365 investment.

Frequently Asked Questions

Do I need a special licence to use Copilot in Word?

Yes. You need a Microsoft 365 Copilot licence in addition to your standard Microsoft 365 subscription. It is available as an add-on to most Business and Enterprise plans. Contact your IT provider or reach out to Otto IT to confirm what your current plan includes.

Can Copilot write an entire document for me?

Copilot can generate a complete first draft from a prompt. However, you should always review and edit the output before using it. Copilot may include inaccurate details, and it does not know your specific business context unless you provide it.

Is Copilot in Word available on the desktop app or only in the browser?

Copilot is available in both the Word desktop application and Word for the web, provided you have an active Microsoft 365 Copilot licence and are signed in with your work account.

How do I get the best results from Copilot?

Be specific in your prompts. Include the audience, the purpose, the length, and any key points you want covered. Vague instructions produce vague results. Use follow-up prompts to refine tone, length, and structure after the initial draft.

Can Copilot access my company’s files in SharePoint?

Yes. When properly configured, Copilot can reference documents stored in SharePoint and OneDrive as context for drafting and summarising. This makes it significantly more useful for team-based document work.