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What’s New in Microsoft Teams – May 2025 Update (With How-To Guide)

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Microsoft Teams is evolving rapidly, and the May 2025 updates bring productivity-boosting tools, improved accessibility, and better user control. Whether you’re a daily Teams power user or just getting started, this guide will help you understand the new features—and how to use them.

🆕 Top New Features & How to Use Them

1. 🗨️ Pop-Out Live Captions & Real-Time Text (RTT)

What it does: Lets you move captions or RTT into a separate window.
How to use:

  • Join a meeting.
  • Turn on Live Captions (from the meeting toolbar → “More” (…) → Turn on live captions).
  • Click the Pop-out icon on the captions bar to move it to a separate window.
  • Resize and reposition as needed.

2. 🔔 Compact Call Notifications

What it does: Incoming calls now appear in a smaller, less intrusive pop-up.
How to use:

  • No action needed.
  • This is automatically enabled. When someone calls you, a small notification will appear in the bottom-right of your screen (like a toast). You can answer, reject, or message back.

3. 📅 Schedule Channel Posts

What it does: Plan your channel announcements like scheduled emails.
How to use:

  1. Go to the desired channel.
  2. Click New conversation → Click the clock icon next to the send button.
  3. Choose date and time, and click Schedule.
  4. Your post will be sent automatically at the selected time.

4. ✏️ Rename the Default ‘General’ Channel

What it does: Customize the “General” channel name for clarity.
How to use:

  1. Go to the Teams list.
  2. Click the three dots next to your team > Manage team.
  3. Under the Channels tab, find “General,” click Edit (✏️ icon), and rename it.

⚠️ Admins must enable this feature in the Teams policies before it’s usable.

5. 📆 Enhanced Calendar Integration

What it does: More views, time zones, and shared calendars inside Teams.
How to use:

  1. Go to Calendar in Teams.
  2. Switch between Day/Week/Month views from the top right.
  3. Use “Add calendar” to import or share.
  4. Use Settings to enable multiple time zones and toggle weather widgets.
  5. Click the Print icon for printable versions of your calendar.

6. ⌨️ Customizable Keyboard Shortcuts (Coming June 2025)

What it does: Personalize shortcuts to improve navigation speed.
How to use (once available):

  1. Click your profile icon > Settings.
  2. Go to Keyboard shortcuts.
  3. Click Customize, assign new keys for commands like Mute, Screen share, or Raise hand.

7. 📂 Improved OneDrive Integration

What it does: Teams remembers your last OneDrive location when switching between apps.
How to use:

  • Simply open a OneDrive file from within Teams.
  • Navigate as usual. When you switch back to OneDrive later, Teams will return you to where you left off—no more restarting navigation.

🔐 Security & Compliance

8. 🛡️ Enhanced External Chat Protection

What it does: Safer interactions with people outside your organization.
How to use:

  • When chatting with an external contact, you’ll see a banner if Teams identifies the conversation as external.
  • Be cautious with links or files. Admins can configure more granular controls under Microsoft 365 Compliance Center > Communication compliance.

9. 🧾 Retirement of Code Snippets Feature

What it does: The “Insert code snippet” option in chat is being retired.
Action to take:

  • Use Loop components or Paste as plain text for code sharing.
  • Alternatively, paste your code into a Markdown editor or a shared file in OneDrive.

🌐 Strategic Shifts

10. 🔚 Skype Retirement

What it means: Skype is no longer supported for video calls.
How to migrate:

  • Download Microsoft Teams (free).
  • Sign in with your Microsoft account.
  • Use the Chat tab to connect with Skype contacts who have migrated.

11. 🇪🇺 EU Antitrust Settlement Changes

What’s changing: Teams is being decoupled from Office 365 and Microsoft 365 in the EU.
How to act:

  • Organizations in the EU can choose packages with or without Teams.
  • Admins should work with Microsoft account managers to select the right plan and ensure interoperability with alternative tools.

🤖 Copilot & AI Features

12. 🎧 Copilot Audio Overviews

What it does: Summarizes documents as audio you can listen to.
How to use:

  1. In OneDrive, right-click on a Word or PDF file.
  2. Select Summarize with Copilot.
  3. Choose Audio overview to get a spoken summary (great for on-the-go updates).

13. 🖼️ Image Querying in OneDrive

What it does: Ask questions about image content stored in OneDrive.
How to use:

  1. Open Copilot in Teams or OneDrive.
  2. Say something like: “Show me the image with the red car from last week.”
  3. Copilot will search image metadata and content to find relevant files.

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