Last updated: 2026-08-19
Microsoft Copilot scores 88.7 on MMLU running Microsoft's newest language models, and is Microsoft's AI assistant built into Windows, Edge, and Office apps like Word, Excel, and Outlook. Unlike a standalone chatbot, it grounds answers in a user's own files and emails through Microsoft Graph.
About Microsoft Copilot
Microsoft Copilot launched as Bing Chat in February 2023 and has since grown into Microsoft's AI assistant across Windows, Microsoft Edge, and productivity apps including Word, Excel, PowerPoint, Outlook, and Teams. It serves both individual consumers and enterprise organizations, handling document drafting, data analysis, email management, and meeting summaries. Prometheus, Microsoft's orchestration layer, blends Bing search results with the underlying language models, while Microsoft Graph grounds enterprise responses in a user's own emails, files, and meetings instead of generic web knowledge. That data grounding is what separates Copilot from a standalone chatbot for organizations already running on Microsoft's productivity apps.
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Pricing
Free tier via web and Edge with usage limits. Microsoft 365 Premium (consumer) is $19.99/month, bundling Office apps, Copilot AI, and up to 6TB OneDrive storage; it replaced Copilot Pro, which stays supported until August 1, 2026. Microsoft 365 Copilot Business is $18/user/month at the promotional rate through September 30, 2026 (standard rate $21/user/month), and requires a base M365 Business license. Microsoft 365 Copilot Enterprise is $30/user/month, requires a base enterprise license, and adds Copilot Studio access. Copilot Studio agents bill separately at $0.01/message or $200/month for 25,000 messages. Microsoft 365 E7 Frontier Suite bundles E5, Copilot, Entra Suite, and Agent 365 for $99/user/month (GA May 1, 2026).
Feature Comparison by Tier
| Feature | Copilot (Free) | Microsoft 365 Copilot (Business) | Microsoft 365 Premium (Consumer) | Microsoft 365 Copilot (Enterprise) |
|---|---|---|---|---|
| Model Access | GPT-4o | GPT-4o/GPT-5 | GPT-4o + GPT-4 Turbo | GPT-5 + Semantic Index |
| Image Generation Daily Limit | 15 boosts | Unlimited | 100 boosts | Unlimited |
| Organizational Data Access (Graph) | — | ✓ (emails, files, meetings) | — | ✓ (semantic index) |
| Microsoft 365 App Integration | Web/Edge only | ✓ (Word, Excel, Outlook, Teams) | Web/Edge/Designer | ✓ (all + custom agents) |
| Custom Agent Creation (Studio) | — | Limited | — | ✓ (computer-using agents GA) |
| Computer-Using Agents | — | — | — | ✓ (generally available) |
| Work IQ (Personalization) | — | ✓ | Limited | ✓ (advanced) |
| Web Search | ✓ | ✓ | ✓ | ✓ |
Key Features
- Conversational AI with GPT-5.6 and Claude: GPT-5.6 became Microsoft's default model on July 9, 2026, alongside GPT-4o, GPT-5, and Anthropic's Claude, which users can pick for complex analysis, document understanding, or long-form content generation.
- Office App Integration: Works inside Word, Excel, PowerPoint, Outlook, Teams, OneNote, and Loop for in-context AI assistance without leaving the app you're already using.
- Copilot Cowork Agentic Tasks (GA): Copilot Cowork reached general availability on June 16, 2026, running multi-step tasks across Word, Excel, PowerPoint, Outlook, and Teams in a secure cloud environment; work continues even after you close your laptop.
- Work IQ Context Grounding: Work IQ grounds AI responses in your role and past work, sharpening drafting in Word, analysis in Excel, deck building in PowerPoint, and email composition in Outlook.
- AI Image Generation: DALL-E 3 powered image generation and editing through Designer, with daily boost limits on the free tier and higher quotas on paid plans.
- Custom Agents via Copilot Studio: A low-code platform for building custom AI agents for internal workflows, task automation, and deployment across websites, Teams, and social channels.
- Cross-Platform Availability: Available through the web, the Windows taskbar, the Microsoft Edge sidebar, and iOS/Android apps, plus built into desktop Office apps.
- Computer-Using Agents (GA): Copilot Studio's computer-using agents are now generally available, letting enterprises automate UI-based workflows across websites and desktop apps without brittle scripts.
Pros
- Deep integration into Word, Excel, Outlook, and Teams cuts the context-switching of a separate chatbot tab.
- Enterprise plans carry HIPAA, SOC 2, and ISO 27001 compliance with data protection through Microsoft Graph.
- The free tier includes AI chat and image generation with no payment required.
- Work IQ personalizes responses using a user's own organizational context and preferences.
- Business plans bundle Office apps and Copilot AI at a lower combined cost than buying them separately.
Cons
- Business and enterprise plans require an existing Microsoft subscription, adding to total cost of ownership.
- The free tier has strict usage limits and lower priority during peak hours.
- Domain expertise is thinner than purpose-built AI tools for specific industries like healthcare or law.
- Occasional hallucinations and inaccuracies can occur despite safeguards, so critical output still needs a human check.
Product Information
- Cloud
- Yes
- Self-Hosted
- No
- On-Premise
- No
- Languages
- English, Chinese (Simplified), Chinese (Traditional), Dutch, French, German, Hindi, Indonesian, Italian, Japanese, Korean, Portuguese, Russian, Spanish, Swedish, Thai, Vietnamese
- Training
- Official Documentation, Microsoft Learn Paths, Copilot Studio Academy, Video Tutorials, Community Forums
Data Handling
- Compliance
- SOC 2 Type II · HIPAA (with BAA for Microsoft 365 Copilot) · ISO 27001 · ISO 27018 · ISO 27017 · ISO 20000-1 · GDPR · FedRAMP · HITRUST CSF · CSA STAR
Frequently Asked Questions
How much do you pay for Microsoft Copilot?
Microsoft Copilot has a free web tier, then three paid plans. Microsoft 365 Premium for consumers is $19.99/month; Microsoft 365 Copilot Business is $18-21/user/month and needs a base M365 license; Microsoft 365 Copilot Enterprise is $30/user/month. Building custom agents in Copilot Studio costs extra, priced per message or as a flat monthly rate.
Can you use Microsoft Copilot without paying?
Yes, the free tier works through the web and Microsoft Edge with usage caps, including 15 image-generation boosts a day. It doesn't connect to Microsoft Graph or your files, and full app integration plus higher limits require a paid plan.
What should you use instead of Microsoft Copilot?
Claude suits agentic reasoning and research work outside Office apps. ChatGPT offers a standalone assistant with the widest plugin and model ecosystem. Gemini fits organizations that already run on Google Workspace instead of Microsoft's productivity suite.
Is Microsoft Copilot better than ChatGPT?
Both run on OpenAI-family GPT models, but Copilot's edge is grounding answers in a user's own emails, documents, and meetings through Microsoft Graph, something ChatGPT can't do natively. ChatGPT counters with a broader plugin ecosystem and a model-agnostic, standalone interface.
What does it take to start using Microsoft Copilot?
Individuals can start free at copilot.microsoft.com or from the Windows 11 taskbar with a Microsoft account, no signup or credit card needed. Businesses need an admin to assign a Copilot license through their Microsoft subscription, after which the Copilot icon appears directly inside Word, Excel, Outlook, and Teams.
Top Alternatives
- Claude: Pick Claude for cutting-edge reasoning and standalone use; pick Copilot if your team is deeply integrated with Microsoft 365.
- ChatGPT: Choose ChatGPT for the broadest third-party plugin ecosystem; choose Copilot if you want AI native to Word, Excel, and Outlook.
- Gemini: Pick Gemini if you are on Google Workspace; pick Copilot if Microsoft 365 is your productivity hub.
HokAI guides covering Microsoft Copilot
- Best AI Tools for Writing Excel Formulas and Data Analysis in 2026: Copilot and Gemini already write most Excel formulas free. This guide covers when Better Analyst, Rows AI, and Aleph are worth paying extra for in 2026.
- Best AI Assistant for Small Business in 2026: Six AI assistants worth paying for in 2026: Microsoft Copilot, Lindy, Timeless, MagicForm, HyperWrite and Grammarly, priced from each vendor's own pricing page.
- How to Choose an AI Assistant: ChatGPT vs Claude vs Copilot vs Grok vs Poe: ChatGPT, Claude, Copilot, Grok or Poe? Real 2026 prices and context windows, plus a framework to match the right AI assistant to your ecosystem and task.
- Best AI Assistant Apps for Android in 2026, Now That Google Assistant Is Dead: Google Assistant shut down on Android September 4, 2026. Here is how Gemini, ChatGPT, Perplexity, Copilot, Meta AI and Claude compare as its replacement.
- Genspark Just Shipped a $179 Hardware Recorder and a Free Office Suite: Genspark launched a $179 hardware recorder and a free open-source office suite within six weeks, even as Trustpilot users flag billing and credit complaints.
- The Claude Computer Window's Deadline Just Moved to December 2027: The EU pushed its AI Act high-risk deadline to December 2027, but vendor risk reviews that keep Claude out of enterprise laptops were never about that date.