Summary
Copilot Notebooks now support Markdown (.md) files as reference sources, enabling grounding in technical docs without conversion. This feature, rolling out worldwide by early August 2026, requires no admin setup, respects existing permissions, and enhances Copilot’s response relevance using Markdown content. No user action is needed.
Details
Updated July 20, 2026: We have updated the timeline. Thank you for your patience.
[What and Why:]
Microsoft is expanding Copilot Notebooks to support Markdown (.md) files as notebook reference sources. This enhancement enables users to ground Copilot conversations in technical documentation, README files, runbooks, wikis, and AI-generated Markdown content without converting files to other formats. By broadening the types of content that can be used as notebook references, Microsoft is helping organizations make better use of existing knowledge repositories and improve the quality and relevance of Copilot-generated responses.
[Rollout Schedule:]
- General Availability (Worldwide): Beginning end of July 2026 (previously mid-July); expected to complete by early August 2026 (previously late July)
[Impact on Your Organization:]
Who is affected:
- Users who have access to Copilot Notebooks.
- Teams that maintain knowledge assets in Markdown (.md) format.
- Organizations using Markdown-based documentation repositories such as technical runbooks, README files, and wiki exports.
Platforms/Services:
- Microsoft Copilot Notebooks
- Microsoft 365 Copilot
- Supported SharePoint and OneDrive locations
What will happen:
- Users will be able to add Markdown (.md) files as notebook reference sources.
- Copilot responses can use information contained within Markdown files as grounding content.
- Copilot can reference structural elements within Markdown documents.
- Existing Markdown-based documentation can be used without file conversion.
- Citations to source content continue to be available.
- The feature is enabled automatically.
- No admin configuration is required.
- Existing permissions and access controls continue to apply.
[Action Required/Recommendations:]
No action is required.
Recommended activities:
- Review internal guidance for users who maintain Markdown-based documentation.
- Communicate the update to Copilot Notebook users.
- Update adoption and training materials as appropriate.
- Validate documentation governance processes for Markdown repositories.
[Compliance Considerations:]
| Consideration | Explanation |
| Does the change alter how existing customer data is processed, stored, or accessed? | Copilot Notebooks can now access and process Markdown (.md) files as grounding sources. This expands the types of content that Copilot can reference when generating responses. |
| Does the change introduce or significantly modify AI/ML or agent capabilities that interact with or provide access to customer data? | Copilot can now reason over, cite, and generate responses based on information contained in Markdown documents, extending AI grounding capabilities to an additional file format. |
| Does the change provide end users any new way of interacting with generative AI? | Users can add Markdown (.md) files directly to Copilot Notebooks and interact with Copilot using content from those files as grounding material. |
| Does the change allow a user to enable and disable the feature themselves? | Users decide whether to include Markdown files as notebook references. The capability is available by default, but usage is controlled by the user when creating or editing notebooks. |
Change History
July 21, 2026 at 8:30 PM
Updated
Title
Previous
Copilot Notebooks now supports Markdown (.md) files as grounding sources
New
(Updated) Copilot Notebooks now supports Markdown (.md) files as grounding sources
Summary
Previous
Copilot Notebooks will support Markdown (.md) files as reference sources starting mid-July 2026, enabling users to ground AI responses in Markdown-based documentation without conversion. This feature is automatic, requires no admin setup, maintains existing permissions, and improves use of technical documentation in Copilot responses.
New
Copilot Notebooks now support Markdown (.md) files as reference sources, enabling grounding in technical docs without conversion. This feature, rolling out worldwide by early August 2026, requires no admin setup, respects existing permissions, and enhances Copilot’s response relevance using Markdown content. No user action is needed.
Last Updated Date
Previous
2026-07-13T17:17:35.840Z
New
2026-07-21T17:44:27.803Z
Tags
Previous
New feature,User impact
New
Updated message,New feature,User impact
Body Content
Previous
<p><b>[What and Why:]</b></p>
<p>Microsoft is expanding Copilot Notebooks to support Markdown (.md) files as notebook reference sources. This enhancement enables users to ground Copilot conversations in technical documentation, README files, runbooks, wikis, and AI-generated Markdown content without converting files to other formats. By broadening the types of content that can be used as notebook references, Microsoft is helping organizations make better use of existing knowledge repositories and improve the quality and relevance of Copilot-generated responses.</p>
<p><b>[Rollout Schedule:]</b></p>
<ul>
<li>General Availability (Worldwide): Beginning in <b>mid-July 2026</b>; expected to complete by <b>late July 2026</b></li>
</ul>
<p><b>[Impact on Your Organization:]</b></p>
<p><b>Who is affected:</b></p>
<ul>
<li>Users who have access to Copilot Notebooks.</li>
<li>Teams that maintain knowledge assets in Markdown (.md) format.</li>
<li>Organizations using Markdown-based documentation repositories such as technical runbooks, README files, and wiki exports.</li>
</ul>
<p><b>Platforms/Services:</b></p>
<ul>
<li>Microsoft Copilot Notebooks</li>
<li>Microsoft 365 Copilot</li>
<li>Supported SharePoint and OneDrive locations</li>
</ul>
<p><b>What will happen:</b></p>
<ul>
<li>Users will be able to add Markdown (.md) files as notebook reference sources.</li>
<li>Copilot responses can use information contained within Markdown files as grounding content.</li>
<li>Copilot can reference structural elements within Markdown documents.</li>
<li>Existing Markdown-based documentation can be used without file conversion.</li>
<li>Citations to source content continue to be available.</li>
<li>The feature is enabled automatically.</li>
<li>No admin configuration is required.</li>
<li>Existing permissions and access controls continue to apply.</li>
</ul>
<p><b>[Action Required/Recommendations:]</b></p>
<p><b>No action is required.</b></p><p>Recommended activities:</p>
<ul>
<li>Review internal guidance for users who maintain Markdown-based documentation.</li>
<li>Communicate the update to Copilot Notebook users.</li>
<li>Update adoption and training materials as appropriate.</li>
<li>Validate documentation governance processes for Markdown repositories.</li>
</ul>
<p><b>[Compliance Considerations:]</b></p>
<table border="1" cellspacing="0" cellpadding="6"><tbody><tr><th>Consideration</th><th>Explanation</th></tr><tr><td>Does the change alter how existing customer data is processed, stored, or accessed?</td><td>Copilot Notebooks can now access and process Markdown (.md) files as grounding sources. This expands the types of content that Copilot can reference when generating responses.</td></tr><tr><td>Does the change introduce or significantly modify AI/ML or agent capabilities that interact with or provide access to customer data?</td><td>Copilot can now reason over, cite, and generate responses based on information contained in Markdown documents, extending AI grounding capabilities to an additional file format.</td></tr><tr><td>Does the change provide end users any new way of interacting with generative AI?</td><td>Users can add Markdown (.md) files directly to Copilot Notebooks and interact with Copilot using content from those files as grounding material.</td></tr><tr><td>Does the change allow a user to enable and disable the feature themselves?</td><td>Users decide whether to include Markdown files as notebook references. The capability is available by default, but usage is controlled by the user when creating or editing notebooks.</td></tr></tbody></table>
New
<p>Updated July 20, 2026: We have updated the timeline. Thank you for your patience. </p><p><strong>[What and Why:]</strong></p><p>Microsoft is expanding Copilot Notebooks to support Markdown (.md) files as notebook reference sources. This enhancement enables users to ground Copilot conversations in technical documentation, README files, runbooks, wikis, and AI-generated Markdown content without converting files to other formats. By broadening the types of content that can be used as notebook references, Microsoft is helping organizations make better use of existing knowledge repositories and improve the quality and relevance of Copilot-generated responses.</p><p><strong>[Rollout Schedule:]</strong></p><ol><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>General Availability (Worldwide): Beginning <strong>end of July 2026</strong> (previously mid-July); expected to complete by <strong>early August 2026</strong> (previously late July)</li></ol><p><strong>[Impact on Your Organization:]</strong></p><p><strong>Who is affected:</strong></p><ol><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Users who have access to Copilot Notebooks.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Teams that maintain knowledge assets in Markdown (.md) format.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Organizations using Markdown-based documentation repositories such as technical runbooks, README files, and wiki exports.</li></ol><p><strong>Platforms/Services:</strong></p><ol><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Microsoft Copilot Notebooks</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Microsoft 365 Copilot</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Supported SharePoint and OneDrive locations</li></ol><p><strong>What will happen:</strong></p><ol><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Users will be able to add Markdown (.md) files as notebook reference sources.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Copilot responses can use information contained within Markdown files as grounding content.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Copilot can reference structural elements within Markdown documents.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Existing Markdown-based documentation can be used without file conversion.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Citations to source content continue to be available.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>The feature is enabled automatically.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>No admin configuration is required.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Existing permissions and access controls continue to apply.</li></ol><p><strong>[Action Required/Recommendations:]</strong></p><p><strong>No action is required.</strong></p><p>Recommended activities:</p><ol><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Review internal guidance for users who maintain Markdown-based documentation.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Communicate the update to Copilot Notebook users.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Update adoption and training materials as appropriate.</li><li data-list="bullet"><span class="ql-ui" contenteditable="false"></span>Validate documentation governance processes for Markdown repositories.</li></ol><p><strong>[Compliance Considerations:]</strong></p><table><tbody><tr><td data-row="row-mruxvprk-26">Consideration</td><td data-row="row-mruxvprk-26">Explanation</td></tr><tr><td data-row="row-mruxvprl-27">Does the change alter how existing customer data is processed, stored, or accessed?</td><td data-row="row-mruxvprl-27">Copilot Notebooks can now access and process Markdown (.md) files as grounding sources. This expands the types of content that Copilot can reference when generating responses.</td></tr><tr><td data-row="row-mruxvprl-28">Does the change introduce or significantly modify AI/ML or agent capabilities that interact with or provide access to customer data?</td><td data-row="row-mruxvprl-28">Copilot can now reason over, cite, and generate responses based on information contained in Markdown documents, extending AI grounding capabilities to an additional file format.</td></tr><tr><td data-row="row-mruxvprl-29">Does the change provide end users any new way of interacting with generative AI?</td><td data-row="row-mruxvprl-29">Users can add Markdown (.md) files directly to Copilot Notebooks and interact with Copilot using content from those files as grounding material.</td></tr><tr><td data-row="row-mruxvprl-30">Does the change allow a user to enable and disable the feature themselves?</td><td data-row="row-mruxvprl-30">Users decide whether to include Markdown files as notebook references. The capability is available by default, but usage is controlled by the user when creating or editing notebooks.</td></tr></tbody></table>
July 13, 2026 at 8:31 PM
Updated
Service
Previous
Microsoft 365 apps
New
Microsoft 365 apps,Microsoft Copilot (Microsoft 365)
Last Updated Date
Previous
2026-07-10T22:45:03.647Z
New
2026-07-13T17:17:35.840Z
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