How to Use the Excel Copilot Function: AI-Powered Formulas for Smarter Data Analysis

What Is the Excel Copilot Function?

The Excel Copilot function is a new AI-powered formula available in Microsoft 365. It allows you to type a natural language prompt directly into a cell and instantly generate insights, summaries, or classifications. Unlike static formulas, Copilot outputs are dynamic, they refresh automatically as your underlying data changes.

This feature brings AI in Excel formulas to life, streamlining analysis and enabling professionals to uncover patterns faster.

“The new CoPilot functionality in Excel is impressively versatile. While it may not directly enhance the core financial modelling techniques we rely on in project finance, it offers substantial value in accelerating data analysis, streamlining business management tasks, and improving the handling of raw datasets. It’s a powerful tool for strengthening the analytical foundation behind our models.”

Rickard Wärnelid, Partner & Head of APAC Financial Advisory and Energy

How to Use AI in Excel Formulas with Copilot

The syntax for the Copilot function is straightforward:

=COPILOT(prompt, optional_context, …)

For example:

=COPILOT(“Classify this feedback”, D4:D18)

This formula instructs Excel Copilot to analyse customer comments in cells D4:D18 and automatically categorize sentiment. Results update in real time as data evolves.

Importantly, Microsoft ensures that data processed with Copilot is kept secure and is not used to train AI models.

“As a financial model auditor, I’m genuinely excited by the potential of CoPilot in Excel to streamline workflows and enhance productivity across financial modelling tasks. Its ability to assist with data handling and analysis is impressive. However, strict model audit procedures rely on full transparency and traceability of calculations. When AI-generated outputs lack visibility into the underlying logic or assumptions, it raises a critical question for sponsors, banks, and government stakeholders: Can you truly trust AI-generated calculations in financial models? While I don’t foresee this being an immediate issue, it’s a conversation we’ll inevitably need to address, especially as live deals begin to incorporate these tools.”  

Ben Kwan, Partner Forvis Mazars APAC Energy

Excel Copilot Examples for Data Analysis

The Copilot function in Excel is designed for practical business use cases:

• Summarize data quickly – condense lengthy survey responses or highlight key trends.
• Classify feedback or issues – automatically tag customer comments or support tickets.
• Generate ideas – brainstorm keywords, messaging options, or project outlines.
• Simplify reporting – turn complex formulas into plain-language explanations.
• Create lists and tables – build structured outputs directly in the spreadsheet.

Best Practices for Writing Excel Copilot Prompts

To get accurate results with AI in Excel formulas, follow these prompting tips:

• Be specific about what you want (e.g., “Summarize in three bullet points”).
• Define the structure (table, list, or paragraph).
• Use clear action verbs such as summarize, rank, or categorize.
• Include examples when precision or tone matters.

The clearer your prompt, the more useful and consistent the Copilot output will be.

Excel Copilot Limitations and Future Updates

At launch, the Excel Copilot function has some constraints:

• Only processes data available in your worksheet (no web or enterprise sources yet).
• Returns dates as text instead of Excel’s native date format.
• Usage limits apply: 100 calls per 10 minutes and 300 calls per hour.

Microsoft is planning enhancements including richer date support, expanded data access, improved array handling, and ongoing model refinements.

Availability of the Copilot Function in Excel

The new function is rolling out to Microsoft 365 Copilot subscribers:

• Windows: Version 2509 (Build 19212.20000) or later
• Mac: Version 16.101 (Build 25081334) or later
• Excel for Web: Coming soon through the Frontier program

Key Takeaway: Why the Excel Copilot Function Matters

The Excel Copilot function represents a major step forward for financial analysts, data professionals, and business leaders. By combining AI with Excel formulas, it empowers users to work faster, generate sharper insights, and make better data-driven decisions.

If you’re preparing reports, analysing customer feedback, or building financial models, Excel Copilot can help you deliver results with greater clarity and efficiency.
For more information visit the Microsoft 265 Insider blog.