Thereâs a difference between an AI tool that answers questions and one that actually does things. Copilot Cowork is firmly in the latter camp - it sends emails, schedules meetings, creates documents, posts to Teams, and generally gets on with work rather than just describing how you could do it yourself.
Itâs also very new. Cowork only became available through Microsoftâs Frontier preview programme at the end of March 2026 - at the time of writing, thatâs this week - so if you havenât come across it yet, thatâs entirely understandable. Iâve been using it through the day jobâs Microsoft 365 Copilot licences and found it useful for a handful of tasks. What caught my attention most, though, was the custom skills feature.
What Cowork Does Out of the Box
The custom skill system builds on Coworkâs built-in capabilities, so it helps to know what youâre starting with. Cowork ships with 13 built-in skills: Word, Excel, PowerPoint, PDF, Email, Scheduling, Calendar Management, Meetings, Daily Briefing, Enterprise Search, Communications, Deep Research, and Adaptive Cards.
Describe what you need in natural language, and Cowork creates a plan, loads the relevant skills, and works through the task step by step. It shows what itâs doing at each stage and asks for approval before taking irreversible actions, such as sending an email or posting on Teams. Cowork only works with files in OneDrive and SharePoint. If youâre hoping to point it at something on your local machine, youâll be disappointed - thatâs by design, not an oversight.
Where Custom Skills Come In
The 13 built-in skills cover a lot of ground, but theyâre generic. They donât know your teamâs document templates, your recurring workflows, or the conventions youâve built up over the years. Thatâs the gap custom skills fill.
Custom skills give Cowork additional context and instructions, loaded alongside its built-in capabilities. You can create up to 20 of them, and the mechanism is about as simple as it gets: a Markdown file in a specific folder in your OneDrive.
Anatomy of a SKILL.md
Each custom skill lives in its own subfolder under /Documents/Cowork/Skills/ in your OneDrive, defined in a file called SKILL.md. If youâve used GitHub Copilot agent skills, the format will be familiar: a YAML frontmatter block followed by Markdown instructions:
---name: skill-namedescription: A description of what the skill does, and when Cowork should use it.---
Your instructions go here in plain Markdown. Be as specific as you need to be.The name field is a unique identifier, keep it lowercase with hyphens. The description is what Cowork uses to decide whether to load the skill for a given conversation, so make it specific. The body of the file is the actual instructions, and you can be as detailed as you need to be.
Creating Your First Skill
Hereâs how.
1. Create the folder structure
In your OneDrive, navigate to Documents. Create a folder called Cowork if it doesnât already exist, then inside that create a Skills folder. Finally, create a subfolder for your specific skill. The name you give this folder typically matches the name in your SKILL.md frontmatter.
The resulting path should look like:
OneDrive/âââ Documents/ âââ Cowork/ âââ Skills/ âââ your-skill-name/ âââ SKILL.md2. Write your SKILL.md
Hereâs an example of a skill for generating consistently formatted branded Word documents from a standard template:
---name: branded-documentdescription: Generates consistently formatted branded Word documents. Use this when asked to create formal documents, reports, or handover notes that need to follow the standard company template.---
When asked to create a Word document, follow these conventions:
## Document Structure- Always start with a title page including the document title, author, date, and version number- Follow with a brief executive summary (2â3 sentences maximum)- Use Heading 1 for major sections and Heading 2 for subsections- End with a "Next Steps" or "Actions" section where appropriate
## Formatting- Use the Standard body text style for all paragraph text- Tables should use the Table Grid style with a shaded header row- Code or command examples should use the Code style or a monospace font
## Tone- Write in a professional but accessible tone- Use active voice where possible- Avoid jargon unless the document is explicitly technical and the audience is technicalThe example above is deliberately simple. In practice, youâd tailor the instructions to match how your team actually works.
3. Save, and youâre done
Thatâs it (itâs worryingly simple). Cowork discovers custom skills automatically at the start of each conversation. No registration, no restart. Save the file to OneDrive, and the next conversation picks it up.
How Cowork Uses Your Skills
When you start a conversation, Cowork evaluates which skills are relevant and loads them, both built-in and custom. The side panel updates in real time to show which are active, so you can confirm your custom skill has loaded before work starts. The description in the front matter drives this selection, so itâs worth getting right. A vague description like âhelps with documentsâ is much less useful than something specific: âgenerates consistently formatted branded Word documentsâ-âuse this when creating formal reports or handover notes.â The more specific you are, the more reliably Cowork picks the right skill.
A Few Things Worth Knowing
- Itâs a preview feature. Frontier previews can and do change, so donât be surprised if the behaviour or format shifts over time. Microsoftâs documentation is kept reasonably up to date, but worth checking back against the official docs if something stops working as expected.
- Custom skills arenât validated by Microsoft. The docs are clear on this: review the outputs from custom skills carefully, particularly early on. Youâre extending the modelâs behaviour, and as with any prompt engineering, test across a range of inputs before relying on it.
- Each SKILL.md can be up to 1 MB, which is more than enough for detailed instructions. You can also reference supplementary files from within a skill if you have reference material you want Cowork to use.
- Cowork canât access local files, so any templates or examples your skill references need to be in OneDrive or SharePoint.
Summary
Custom skills in Copilot Cowork are straightforward to set up. A SKILL.md file in a OneDrive folder, and Cowork picks it up automatically. The real value is being able to bake your teamâs working conventions directly into the modelâs context.
Iâll be honest, I was expecting more friction. No registration, no admin configuration required - it just works, which is more than you can say for some of the previous Copilot previews.
If you have a Microsoft 365 Copilot licence and access to the Frontier programme, itâs worth asking your admin to enable the Frontier feature and having a look. The Microsoft Learn docs cover the full custom skill format:





