By work, what Google meant is that users can edit their Word files through Google Docs’ Android app natively without using the Office Compatibility Mode. They can also edit Excel and PowerPoint files through the Sheets and Slides apps, respectively.
They can also continue to comment and collaborate on their Office files without the need to convert them to Docs, Sheets, or Slides format first. Google has noted that this ability will be turned on by default to all users. The company also stated that the new Office editing feature has already been rolled out to users. However, it does take some time for it to be deployed to everyone though, so don’t be surprised if you haven’t seen the feature inside the G Suite apps on your own Android device. (Source: G Suite Blog via XDA Developers / Google Cloud Blog)