The “Transcribe” pane will open in the right-hand side of the window. If this is your first time using the feature, you’ll need to give Microsoft permission to access your microphone. In the “Home” tab, click the arrow next to “Dictate” and then select “Transcribe” from the menu that appears. You can have Word transcribe audio that you record directly within Word. If you have the free version and you try to use the feature, you’ll be met with a message asking you to subscribe.
To transcribe audio with Word, you must be a Microsoft 365 premium subscriber. Microsoft provides an audio transcription feature for the online version of Word that converts audio (recorded or uploaded from a file) directly to text, and even separates the text based on the speaker.