Microsoft has unveiled a major update to Microsoft 365, bringing expanded AI, security, and management capabilities across its suite of offerings and with them, an updated pricing structure that will take effect in 2026. These changes mark one of the most significant enhancements to Microsoft 365 in recent years, aimed at helping organisations of all sizes stay productive and secure in an increasingly complex digital world. One of the simplest and most welcome change is the bump of 50GB of additional space in mailboxes for the M365 Business Basic, Standard and Premium offering.
At the core of the update is Microsoft’s continued push to embed artificial intelligence deeply into everyday work. Building on the rollout of Microsoft 365 Copilot Chat, which brings AI-powered conversation right into Word, Excel, PowerPoint, Outlook, and OneNote, Microsoft is extending both the capabilities and governance of AI tools. Copilot Chat now includes Agent Mode, allowing users to work iteratively with AI inside the tools they use most, while IT teams gain enterprise-grade controls to secure and manage this new AI experience.
Security is another focus. New protections from Microsoft Defender for Office 365 Plan 1 are being added to Office 365 E3 and Microsoft 365 E3 subscriptions to help detect and defend against phishing, malware and malicious links. URL checks which warn users about known dangerous links are being introduced for Office 365 E1 and Microsoft 365 Business Basic and Standard plans. These enhancements build on Microsoft’s broader strategy to help organisations face increasingly sophisticated threats without adding complexity for users.
IT teams also get a boost with expanded endpoint management tools. Capabilities such as Remote Help, Intune Advanced Analytics, and Intune Plan 2 will be integrated into Microsoft 365 E3 and E5 plans. For E5 customers especially, features like Endpoint Privilege Management and Enterprise Application Management add further depth to security and compliance, helping organisations proactively manage devices and data.
Behind the scenes, Microsoft is embedding more AI-powered security agents: Security Copilot agents. These agents help security teams respond faster and with greater insight, tying advanced AI directly into tools like Microsoft Defender, Entra, and Purview.
Check the 1st table to see the matrix of additional features added!
All these enhancements unfortunately come with updated commercial pricing, which will be applied globally from July 1, 2026. Pricing is in table 2 below in USD from Microsoft and we will update customers with the relevant GBP pricing when it is available.
These updates reflect Microsoft’s commitment to making Microsoft 365 not just a productivity suite, but a comprehensive platform that blends AI, security, and manageability, empowering teams to innovate while staying protected.
