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[What and Why:]
Microsoft is expanding Microsoft 365 Copilot Notebooks to support TXT (.txt) and RTF (.rtf) files as reference sources. This update enables users to bring a broader range of text-based content—such as transcripts, meeting exports, developer notes, and AI-generated outputs—into a single AI-powered workspace. By grounding Copilot in more contextual information, this enhancement strengthens productivity and enables more comprehensive insights, summaries, and content generation.
[Rollout Schedule:]
- General Availability (Worldwide): Rollout begins early July 2026 and is expected to complete by mid-July 2026.
[Impact on Your Organization:]
Who is affected: Users with access to Microsoft 365 Copilot Notebooks
Platforms/Services:
- Microsoft 365 Copilot
- Copilot Notebooks
What will happen:
- Users can upload and use TXT (.txt) and RTF (.rtf) files as notebook references.
- Copilot can analyze and use content from these files alongside other supported formats.
- The feature will be available by default once rolled out.
- Existing Microsoft 365 security, compliance, and data governance policies continue to apply.
- No changes to existing workflows—this is an additive enhancement.
[Action Required/Recommendations:]
No action is required.
Recommended actions:
- Inform users about support for TXT and RTF files in Copilot Notebooks.
- Update internal training or adoption materials to reflect expanded file support.
- Review internal governance policies if needed to ensure appropriate use of text-based content in AI workflows.
[Compliance considerations:]
| Consideration | Explanation |
| Does the change provide end users any new way of interacting with generative AI? | Users can now include TXT and RTF files as reference sources in Copilot Notebooks, enabling Copilot to analyze and generate responses based on additional unstructured text inputs. |
| Does the change alter how existing customer data is processed, stored, or accessed? | Content from TXT and RTF files added to notebooks will be processed and accessed by Copilot alongside existing reference files to generate insights and responses. |
| Does the change introduce or significantly modify AI/ML or agent capabilities that interact with customer data? | Copilot’s AI capabilities are extended to interpret and reason over TXT and RTF file content within notebooks, expanding the range of data sources used for AI-driven outputs. |
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{
"snapshot_item": {
"action_required_by": null,
"ai_action_required_by": "2026-07-09T00:00:00Z",
"ai_actions": [
"Inform users about new TXT and RTF file support",
"Update internal training and adoption materials",
"Review governance policies for text-based AI workflows"
],
"ai_master_tags": [
"User",
"Admin",
"Compliance",
"Copilot License"
],
"ai_model": "gpt-4.1",
"ai_summary": "Microsoft 365 Copilot Notebooks now support TXT and RTF files as reference sources, enabling users to leverage more text content for AI-driven insights and content generation.",
"ai_topics": [
"Microsoft 365 Apps",
"Copilot"
],
"category": "stayInformed",
"details_map": {
"Summary": "Microsoft 365 Copilot Notebooks will support TXT and RTF files as reference sources starting early July 2026, enabling users to include more text-based content for AI analysis and insights. This enhancement requires no action, maintains existing security policies, and expands Copilot\u2019s data processing capabilities."
},
"id": "MC1420894",
"importance": 3,
"is_major_change": false,
"last_modified": "2026-07-08T23:11:06Z",
"ms_products": [
"Microsoft 365 Apps",
"Copilot"
],
"platforms": null,
"roadmap_ids": [],
"services": [
"Microsoft 365 apps",
"Microsoft Copilot (Microsoft 365)"
],
"severity": "normal",
"tags": [
"Feature update",
"User impact"
],
"title": "Microsoft 365 Copilot Notebooks: Support for TXT and RTF files as notebook references"
}
}