Feature
2025 will mark 40 years since the launch of Excel. For four decades, the iconic grid has crunched numbers, built budgets and transformed raw data into decisions that have shaped the workplace. Now, with the integration of AI through tools like Copilot, Excel is redefining what a spreadsheet can do.
Its journey from a groundbreaking Macintosh application to the world's universal spreadsheet reflects not just the evolution of technology but also how we think about, organize and harness information.
Excel's Journey
The software's timeline began with its 1985 debut on Apple Macintosh before being released, in 1987, for Windows. Despite rapid adoption from the outset, it wasn't until 1993 that a transformative moment arrived: when Excel 5.0 introduced Visual Basic for Applications (VBA), which introduced custom macro capabilities and task automation. By 1997, the spreadsheet landscape had shifted decisively, with Excel surpassing Lotus 1-2-3 to claim market dominance.
Technical capabilities expanded dramatically with subsequent releases. Excel 2007 marked a significant advancement, accommodating up to one million rows and 16,000 columns. Later versions incorporated increasingly sophisticated features, such as 3D mapping and advanced forecasting tools, further cementing Excel's position in data analysis and visualization.
But Excel has also faced criticism, particularly when it comes to the risk of making major errors with the program. The most notable reported were:
- J.P. Morgan's London Whale Incident: A copy-and-paste error in a value-at-risk model led to a $6 billion loss for J.P. Morgan in 2012, as the model underestimated risk due to incorrect data handling.
- Kodak's $11 Million Severance Error: In 2005, Kodak mistakenly added too many zeros to a severance accrual record, resulting in an $11 million overstatement that negatively impacted the company's stock.
- London Olympics Ticket Overselling: An employee's typographical error caused the overselling of 10,000 tickets for a swimming event during the 2012 Olympics, leading to significant embarrassment for the organizers.
- TransAlta's $24 Million Bidding Error: A clerical error in 2003 caused TransAlta to submit bids for transmission contracts at inflated prices, leading to a loss of 10% of their profits.
These errors highlight the potential risks associated with spreadsheet use and the importance of careful data management. It is also likely why Microsoft has now made Copilot widely available in Excel.
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AI Transforms Excel
Adding Copilot to the software has been transformative, for many reasons. For once, the Copilot feature in Excel allows users to interact with data more effectively, even when it is not formatted as a table. Enhancements include expanded support for formulas such as XLOOKUP and SUMIF, advanced conditional formatting and the ability to refine visualizations, including charts and PivotTables. Plus, in addition to numerical data, Copilot supports text-based data, broadening its scope and functionality.
Building on these advancements, Microsoft has now also integrated Python and pushed it into public preview, combining Excel’s user-friendly environment with the analytical strength of one of the most widely used programming languages for data science. This mix offers a new level of data analysis and automation within Excel and enables advanced capabilities such as forecasting, risk analysis, machine learning and complex data visualization, all executed through natural language commands.
But perhaps the best feature of all is that all of this, thanks to Excel's user-friendly platform, requires no coding expertise, making advanced analytics more accessible. Shawn DuBravac, CEO of Avrio Institute, said users can now perform tasks like forecasting and risk analysis, generating summaries, visualizations and even drafting reports based on datasets, all through natural language input.
The ability to interact with data using natural language is one of Copilot’s most groundbreaking features. Instead of crafting intricate formulas or navigating complex menus, users can simply describe their needs conversationally. This functionality democratizes data analysis, enabling non-technical team members to perform tasks such as forecasting, trend analysis and data visualization.
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Excel Shines in the Workplace
In practical terms, all of these integrations mean that repetitive and time-consuming tasks, such as data cleaning or consolidating information from multiple sources, are now automated in Excel, reducing manual effort, speeding up workflows and minimizing errors. According to Nick Nagatkin, founder of Digis, tasks that previously required hours can now be completed in minutes.
As with the other Copilot functionalities, advance preparation is required before a user can tap into all of the capabilities.
The transformation bridges skill gaps while fostering a culture of agility and data-driven strategies. “By automating routine tasks and providing instant insights, Copilot enables teams to focus on innovation and long-term planning,” Arvind Rongala, CEO of Edstellar, said.
Copilot’s ability to highlight patterns, identify anomalies and recommend visuals like pivot charts or heatmaps ensures that data insights are readily available and easy to interpret. These features not only save time but also improve the quality of decision-making across teams.
Excel's broad accessibility makes it an invaluable tool for a wide range of users. "[It is] simple enough for beginners but powerful enough for advanced users," said Adhiran Thirmal of Cycode. As a familiar and readily available tool, it is the go-to option for any data-related task, from classrooms to corporate offices.
"The flexibility of Excel ensures its relevance across diverse use cases," Sebastian Dewhurst, general manager at EASA Software, said. "If you can think of it, you can probably build it in Excel."
Copilot's ability to generate formulas, create visualizations and analyze trends from simple text prompts further enhances this flexibility. While specialized tools may better serve specific niches, Excel thrives in scenarios where custom solutions are necessary but off-the-shelf options fall short.
Real-time editing, enabled through Excel for the Web, allows team members to work together seamlessly across different devices and software versions. The integration of Copilot with the wider Microsoft ecosystem further enhances its utility in enterprise workflows. Tools like Power BI, SharePoint and Teams work with Excel, ensuring that Copilot’s features are leveraged to their fullest potential in collaborative environments.
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Excel’s Future
Over the next five to 10 years, Excel is expected to further build on those advancements and evolve into a fully AI-driven platform. Experts foresee advancements where creating complex models or automating entire workflows will be as simple as issuing a command.
Dewhurst predicts a future where AI tools like Copilot and ChatGPT will integrate more deeply into Excel, facilitating everything from real-time forecasting to dynamic reporting. Dedicated data stores, equipped with tailored permissions, may also become more prevalent. These will provide users with curated datasets, enhancing the effectiveness of AI-powered tools.
The AI-driven capabilities of Copilot reflect a larger shift toward making data analysis tools more accessible. As businesses continue to adopt these innovations, Excel will remain a cornerstone for data management, analysis and decision-making. And combined with innovations like Power Query, Power Pivot and now Copilot's AI capabilities, Excel users will be able to handle larger datasets and conduct sophisticated analyses, maintaining the software's utility in an evolving technological landscape.
The platform's gradual learning curve is another critical advantage. As Robert Kugel, ISG executive director, points out, Excel allows individuals to become increasingly proficient with its substantial capabilities in ways and at a pace that suit their needs. "Copilot makes more capabilities more accessible to spreadsheet jockeys — and even non-spreadsheet jockeys. It can significantly increase the productivity of analysts and even non-analysts in working with data," he said, adding that GPT in Excel also helps expand these capabilities, allowing, for example, the creation of templated query grids that can be used by multiple people multiple times to quickly get and assembling a consistent set of up-to-date information decision-making.
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Features such as pivot tables and lookup functions can be mastered as they become relevant, with Copilot serving as an intelligent guide that can explain concepts and suggest optimal approaches. This makes Excel more accessible to casual users compared to more sophisticated tools that require significant upfront training.