What is Microsoft Copilot?

Microsoft uses “Copilot” for several different things, which causes confusion. This page focuses on the one most workers meet: the AI assistant inside Microsoft 365 at work.

What it is

Microsoft’s documentation describes Microsoft Copilot as a sophisticated processing and orchestration engine that coordinates three things: large language models, content in Microsoft Graph (emails, chats and documents you have permission to access), and the Microsoft 365 apps you use daily, such as Word and PowerPoint. The result is an assistant that can answer questions grounded in your own work: summarize a thread, draft a document from files you already have, or explain a spreadsheet.

Naming has changed. Microsoft Learn says the Microsoft 365 Copilot app is now called Microsoft Copilot. Microsoft Learn says the Microsoft 365 Copilot Chat app is now called Microsoft Copilot Chat. Some licenses and features may still carry the older names.

Where you find it

In the apps: Microsoft’s documentation lists in-app features for Word, Excel, PowerPoint, Outlook, Teams and OneNote. Examples: in Excel, analyze data, generate insights, create formulas and visuals; in Outlook, draft emails, summarize threads, and use coaching tips to improve clarity, sentiment and tone; in Teams, summarize meetings (up to 30 days) and transcribe them, and capture action items. Our Excel guide explains how Copilot in Excel works, including its saved-to-OneDrive requirement.

What it costs

Microsoft lists business pricing per user per month. The Microsoft Copilot pricing page lists the Copilot Business add-on as originally starting from $21.00, now starting from $18.00 per user per month, paid yearly. The $18.00 figure is a first-year promotional price on an annual commitment. The Microsoft Copilot pricing page lists the Copilot Business add-on at $25.20 per user per month. The Microsoft Copilot pricing page lists Microsoft 365 Business Standard with Copilot at $23.50 per user per month, paid yearly. The Microsoft Copilot pricing page lists Microsoft 365 Business Premium with Copilot at $32.00 per user per month, paid yearly. Enterprise pricing differs, and prices change, so confirm on Microsoft’s site. Microsoft Learn describes Copilot Chat (Basic) as the standalone baseline experience included with eligible Microsoft 365 licenses.

What it does with your data

Microsoft’s documentation says:

• Copilot only surfaces organizational data to which individual users have at least view permissions.
• Prompts, responses and data accessed through Microsoft Graph are not used to train foundation LLMs.
• Interactions are stored, and admins can use Content search or Microsoft Purview to view and manage this stored data and set retention policies.
• Users can delete their Copilot activity history through their account portal.

The second-to-last point matters: it means your employer’s administrators may be able to find your Copilot interactions. See whether your employer can see your AI chats.

Also note that Copilot respects existing permissions, so if files are shared too widely in your organization, Copilot may surface them to people who can already technically open them. Tidy permissions before rollout.

Strengths and limits

It is strong when your material is already in Microsoft 365, and it comes with your company’s existing compliance framework. It is less flexible than a general assistant for work that lives outside those apps. How it compares to a general chatbot is covered in Copilot vs ChatGPT.

Verify the output

Microsoft itself says responses are not guaranteed to be 100% factual and that users should use their judgment when reviewing output before sending it to others. Do that.

Learn AI Fast includes Copilot as an example in its spreadsheet lab on day one.

Sources

• Microsoft Learn, Data, Privacy, and Security for Microsoft Copilot: “Microsoft Copilot is a sophisticated processing and orchestration engine”
• Microsoft Learn, What is Microsoft Copilot?: “The Microsoft 365 Copilot app is now called Microsoft Copilot”
• Microsoft Learn, What is Microsoft Copilot?: “The Microsoft 365 Copilot Chat app is now called Microsoft Copilot Chat”
• Microsoft Learn, What is Microsoft Copilot?: “Analyze data, generate insights, create formulas and visuals”
• Microsoft Learn, What is Microsoft Copilot?: “Draft emails, summarize threads, and use the coaching tips to improve clarity, sentiment and tone”
• Microsoft Learn, What is Microsoft Copilot?: “Summarize (up to 30 days) and transcribe meetings, and capture action items”
• Microsoft, Microsoft Copilot plans and pricing: “Originally starting from $21.00 now starting from $18.00”
• Microsoft, Microsoft Copilot plans and pricing: “Microsoft 365 Copilot Business (add-on) AI built for work to help drive productivity, clarity and impact across your existing Microsoft 365 experience $25.20 user/month”
• Microsoft, Microsoft Copilot plans and pricing: “Microsoft 365 Business Standard with Copilot Powerful apps across devices, with Copilot built in to enhance creativity, collaboration, and efficiency $23.50 user/month, paid yearly”
• Microsoft, Microsoft Copilot plans and pricing: “Microsoft 365 Business Premium with Copilot $32.00 user/month, paid yearly”
• Microsoft Learn, What is Microsoft Copilot?: “Copilot Chat (Basic) is the standalone baseline experience included with eligible Microsoft 365 licenses”
• Microsoft Learn, Data, Privacy, and Security for Microsoft Copilot: “Microsoft Copilot only surfaces organizational data to which individual users have at least view permissions”
• Microsoft Learn, Data, Privacy, and Security for Microsoft Copilot: “Prompts, responses, and data accessed through Microsoft Graph aren’t used to train foundation LLMs”
• Microsoft Learn, Data, Privacy, and Security for Microsoft Copilot: “admins can use Content search or Microsoft Purview”
• Microsoft Learn, Data, Privacy, and Security for Microsoft Copilot: “aren’t guaranteed to be 100% factual”