Microsoft Copilot Ads Updates Tracker

GPT-5.2 Added to Copilot Chat

Microsoft adds GPT-5.2 to the Copilot Chat model selector, offering Quick Response and Think Deeper modes. Better instruction following, improved reasoning, and clearer explanations. Implications for Brand Agent response quality are significant.

Image Animation + Performance Comparison Launch

Image Animation in Microsoft Advertising Platform turns static product images into short video assets using AI. Available via Ads Studio globally (excluding mainland China). Performance Comparison tool also launches for easier period-over-period campaign benchmarking.

Copilot Checkout Merchant Onboarding Expands

PayPal and Stripe merchant applications now open for Copilot Checkout. Shopify auto-enrolment live. Microsoft confirms Copilot Checkout intent-to-purchase transactions completing in seconds within conversations.

Brand Agents & Copilot Checkout Announced at NRF

Brand Agents and Copilot Checkout unveiled at the National Retail Federation conference, January 11–13. Live demos shown. Shopify auto-enrolment confirmed. AEO/GEO playbook “From Discovery to Influence” published.

Copilot Studio 2026 Wave 1 Roadmap Published

April–September 2026 features confirmed: expanded agent knowledge types, agentic workflow improvements, new evaluation capabilities, and deeper Copilot Studio integration with Microsoft 365 agent builder.

Copilot in Microsoft Advertising: API Access Expanded

API access for Background generation, Display ad generation, Video ad generation and Brand Kit capabilities opened globally. Enables advertisers to integrate generative AI directly into proprietary platforms.

73% Higher CTR Research Published

Microsoft Advertising publishes first-party research covering Nov 2024–May 2025: 73% higher CTRs, 16% stronger conversion rates, and 33% shorter customer journeys for Copilot vs traditional search. Authors: Kevin Klein and Paul Longo.

Microsoft Search Ad Revenue +21%

Microsoft advertising revenue reaches $13.9 billion in fiscal 2025, up 21% year-over-year. Copilot Search integration in Bing cited as a primary growth driver.