Microsoft AI Update July 2026

John Savill recaps major Microsoft AI updates from July 2026, including new and updated models, Azure AI Foundry changes, and GitHub Copilot feature additions such as new “harness” options, @-mentioning app agents, and browser tools for Copilot in VS Code.

Overview

The video is a monthly-style update covering Microsoft AI-related announcements and feature rollouts from July 2026.

Model and capability updates

• Model thinking updates
• OpenAI GPT-5.6
• GPT-transcribe and GPT-live-transcribe
• MAI-Image-2.5 Pro and MAI-Voice-2 Flash
• Claude Opus 5 availability
• Kimi K3 via Fireworks AI
• Grok 4.5 and Gemini 3.6 availability in GitHub Copilot

Agent and platform themes

• ROI considerations for agents
• Foundry IQ support
• Sensitive trace content handling

Azure and regional/platform updates

• APAC data zone
• New portal experience
• APIM AI Gateway (Azure API Management AI gateway)

GitHub Copilot and Copilot app updates

• GitHub Copilot harness option
• Ability to @ mention app agents in chat
• Copilot in-app updates
• Browser tools for Copilot in VS Code

Microsoft 365 Copilot app items mentioned

• Meeting recaps
• Microsoft 365 Copilot app notifications
• Event-driven tasks
• Cowork enhanced skill support
• Skill Recorder
• Copilot vision