Microsoft is reportedly preparing for the launch of GPT-5, OpenAI’s next-generation language model, with internal testing of a new “smart mode” for its Copilot AI assistant, according to The Verge.
OpenAI is planning to launch GPT-5 in early August. References to GPT-5 have already been spotted inside Microsoft’s Copilot web app, hinting at the imminent arrival of a new feature called “smart mode.”
Microsoft is actively testing this new “smart mode” for Copilot in both its consumer and commercial Microsoft 365 Copilot versions. The consumer version is described as an AI that “thinks deeply or quickly based on the task.” This eliminates the need for users to manually select different models for various tasks.
The employee-only version of Microsoft 365 Copilot also features a similar “smart mode.” This version is designed to “use the most relevant model for your request to give you better results.” Current internal versions of Copilot do not explicitly mention GPT-5, and the model suggests it is still operating on GPT-4. However, the user interface indicates the preparation for a GPT-5-powered mode for Copilot.
OpenAI CEO Sam Altman stated that OpenAI wants to improve ChatGPT’s model picker. Altman said in February, “We hate the model picker as much as you do and want to return to magic unified intelligence.” Altman also revealed that GPT-5 will include its o3 model instead of releasing it as a separate version.
The concept of a “magic” model picker has been used by Microsoft internally. Some parts of Microsoft 365 Copilot have displayed a “magic mode” designed to function identically to the “smart mode.” It is suspected that “magic mode” is simply a codename for “smart mode,” and this version does not mention GPT-5. Microsoft typically does not disclose the specific OpenAI model used for its various Copilot modes.
The early appearance of “smart mode” in Copilot suggests that Microsoft engineers are preparing for the release of GPT-5. OpenAI had initially planned an earlier release for GPT-5. Microsoft has historically implemented OpenAI’s models into Copilot shortly after their release. For example, Microsoft’s AI-powered version of Bing used OpenAI’s GPT-4 model for six weeks before OpenAI officially announced GPT-4. Microsoft also launched OpenAI’s o1 reasoning model as part of a Copilot overhaul last year, before making it free to use several months later. Likewise, Microsoft made the Sora video generator free to use, months after OpenAI released its paid version.
Microsoft declined to comment on the GPT-5 references in Copilot and the new “smart mode.” If OpenAI’s final preparations for GPT-5 proceed as planned, Copilot’s “smart mode” is expected to be available to all users soon.
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