Episode 426: Claude Cowork vs Microsoft 365 Copilot Cowork

by [Scott](/content/author/scottmsclouditpro/ "Posts by Scott"/index.html) | Apr 23, 2026 | Podcast

Welcome to episode 426 of the Microsoft Cloud IT Pro podcast recorded live on 04/17/2026. This is a show about Microsoft 365 and Azure from the perspective of IT pros and end users, where we discuss the topic or recent news and how it relates to you. In this episode, Ben and Scott dig into the world of cowork, comparing Anthropic's Claude cowork and Microsoft 365 Copilot cowork across desktop versus cloud, local file access versus native graph data, context windows, models, and regional availability. They also dig into the hidden skills menu in Microsoft 365 Cowork, building custom skills with markdown in OneDrive, the missing MCP story, and how Cowork fits alongside regular Copilot chat.

Episode Overview

1. Comparison of Cowork Tools

Claude Cowork runs locally on a desktop, while Microsoft 365 Copilot Cowork runs in the cloud.
Local accessibility: Claude Cowork can manage files stored on the user's machine, while M365 requires files to be in OneDrive.
Scheduled tasks in Microsoft 365 can run in the cloud, independent of local machine status.

2. The Modalities

Claude Cowork supports MCP server connections.
Microsoft 365 Copilot has native access to Graph data, enhancing integration and utility for regulated organizations.

3. Discussion on AI Copilots

Both tools offer automation but differ significantly in functionality and output generation.
Users should be mindful of which tool fits their specific tasks and workflow needs.

4. Hidden Features and Skills

Discussion about the need for deeper integrations with existing Microsoft tools, including custom skills that enhance the AI's performance using markdown.

5. Wrap Up

Concluding thoughts on how these tools will evolve and importance for organizations to adapt accordingly.

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