Microsoft Thursday introduced new features in its digital assistant Copilot such as collaboration and deeper integration with other applications like Outlook and Google, beefing up its AI services to stave off competition.

Other artificial intelligence service providers such as Anthropic and OpenAI are upgrading their models and launching products aimed at capturing a wider share of the booming AI market.

If it gets permission, Copilot can see and use reasoning over a user's tabs on Microsoft's Edge browser, summarize and compare information and take action like booking a hotel.

Previous browsers can also be turned into "storylines" so people can revisit older ideas.

Along with the software features, the company introduced an avatar called "Mico" — a nod to Microsoft Copilot — which can show expressions and change color to make conversations feel natural, the company said.

The upgrades are an attempt to boost the appeal of Microsoft's browser to gain ground on Alphabet's Google Chrome, while OpenAI also entered the browser market with Atlas.

Groups turns Copilot into a shared space, able to support up to 32 people, allowing users to collaborate on writing and other projects.

The company has also improved Copilot's health-related questions, addressing how to ground responses from credible sources, as concerns over misinformation from AI-generated responses rise.

All the updates are live in the United States, Microsoft said, adding that it will roll them out across the UK, Canada and beyond in the next few weeks.