Updated 2025-02-23
Microsoft Copilot
AI built into Microsoft 365. Word, Excel, PowerPoint, Outlook, Teams. Per-user licensing.
Entry:$30/user
Data:Partial
Best for:Microsoft 365 users
Use cases
Drafting in Word
Excel analysis and formulas
PowerPoint generation
Outlook email drafting
Teams meeting summaries
Cross-app workflows
Pricing model
Copilot for Microsoft 365: $30/user/month add-on. Bundled in some Business plans. Free Copilot Chat for eligible M365 subscribers (limited).
Copilot Chat (free)
$0
Secure chat, file uploads, web grounding; limited vs paid
Copilot for M365
$30/user/month
Deep integration in Word, Excel, PowerPoint, Outlook, Teams
Business Basic + Copilot
~$36/user/month
Bundled
Business Standard + Copilot
~$42.50/user/month
Bundled
E3/E5 + Copilot
M365 + $30/user
Enterprise; add-on
Copilot for Sales, Service, Finance included in same $30 license.
Source: Microsoft Copilot pricing
Business fit
Pros
- Already in tools you use
- No separate AI app to adopt
- Predictable per-user cost
- Enterprise controls, SSO
- No training on your data (Business/Enterprise)
Cons
- $30/user adds up for large teams
- Tied to Microsoft ecosystem
- Requires M365 subscription
- Feature limits per plan
When it makes sense: Good for organisations already on Microsoft 365. Best when you want AI in Office apps without a separate tool. Compare total M365 + Copilot cost.
Data handling
Microsoft states they do not train on your data. Data stays in your tenant. Encryption at rest and in transit.
GDPR / compliance: Microsoft 365 compliance; EU data residency options.
Data sovereignty: Data residency in M365 regions.