In a nutshell, the latest release of Word, Excel, PowerPoint, Outlook, OneNote and OneDrive will all work on the new M1-based Macs.
If you’re going to buy or have already placed an order for one of Apple’s new Macs with the M1 chip and are wondering how it’d handle that Microsoft Office productivity suite that you so can’t do without, well, Microsoft has released a fairly succinct FAQ regarding compatibility. Don’t worry, your Microsoft Office apps will run fine on the new Macs powered by the M1 processor