What is Microsoft Copilot and should I get it?
Complete guide to Microsoft Copilot - what it does, what it costs, security considerations, and whether it's worth it for your business.
Microsoft Copilot is everywhere in the Microsoft ecosystem now. Let’s break down what it actually is, what it costs, and whether your business should invest in it.
What Is Microsoft Copilot?
Microsoft Copilot is AI assistance built into Microsoft products. It uses large language models (similar to ChatGPT) to help you work within Microsoft applications.
It’s not one product - it’s a family of products:
| Product | Where It Lives | What It Does |
|---|---|---|
| Copilot (free) | Bing, Windows, mobile apps | General AI assistant |
| Copilot Pro | Personal Microsoft 365 | AI in Office apps for individuals |
| Copilot for Microsoft 365 | Business Microsoft 365 | AI in Office + enterprise features |
| Copilot for Security | Security products | Security-focused AI assistance |
| GitHub Copilot | VS Code, GitHub | Code generation assistance |
When people ask about Copilot for business, they usually mean Copilot for Microsoft 365.
What Does Copilot for Microsoft 365 Actually Do?
In Outlook
- Draft emails from bullet points
- Summarize long email threads
- Suggest replies
- Find information across your mailbox
- Summarize your inbox highlights
In Word
- Draft documents from prompts
- Rewrite and improve text
- Summarize long documents
- Generate content based on other files
- Change tone and style
In Excel
- Analyze data with natural language
- Generate formulas from descriptions
- Create charts from data
- Identify trends and insights
- Format and organize data
In PowerPoint
- Create presentations from prompts
- Generate slides from documents
- Add and format content
- Create speaker notes
- Design suggestions
In Teams
- Summarize meetings
- Generate meeting notes
- Answer questions about discussions
- Create action items
- Recap what you missed
In OneNote
- Summarize notes
- Generate to-do lists
- Draft content from notes
- Organize information
Business Chat (Microsoft 365 Chat)
- Query across all your Microsoft 365 data
- Find information in emails, files, chats
- Summarize projects across tools
- Generate content from multiple sources
What Does It Cost?
Pricing (as of 2025)
| Product | Monthly Cost | Notes |
|---|---|---|
| Copilot (free) | $0 | Basic features, no enterprise integration |
| Copilot Pro | $20/user | For personal Microsoft 365 subscriptions |
| Copilot for Microsoft 365 | $30/user | Requires qualifying Microsoft 365 plan |
Requirements for Copilot for Microsoft 365
You need:
- Microsoft 365 E3, E5, Business Basic, Business Standard, or Business Premium
- Azure Active Directory (Entra ID)
- Minimum 1 user (no minimum count)
Total Cost Example
25-user company, Microsoft 365 Business Premium:
| Item | Per User | Monthly Total |
|---|---|---|
| Microsoft 365 Business Premium | $22 | $550 |
| Copilot for Microsoft 365 | $30 | $750 |
| Total | $52 | $1,300 |
Annual cost with Copilot: $15,600 Without Copilot: $6,600 Copilot cost: $9,000/year
Is It Worth It?
The honest answer: It depends on your use case and your people.
Where We See the Most Value
Heavy document creators: Sales teams writing proposals, HR drafting policies, executives preparing presentations
Meeting-heavy organizations: Leadership teams, project managers, anyone in endless meetings
Data analysts: People who live in Excel and need to make sense of data
Email warriors: People drowning in email who need help managing and responding
Where Value Is Limited
Simple workflows: If your team doesn’t use advanced Office features, Copilot doesn’t add much
Non-knowledge workers: Manufacturing, warehouse, field workers who don’t live in Microsoft 365
Small data volumes: If you don’t have much organizational data, the cross-app intelligence is limited
The ROI Math
Typical productivity claim: Save 30 minutes to 2 hours per day
Let’s be conservative: 30 minutes saved per day
30 min × 20 workdays = 10 hours/month saved
Value calculation:
- 10 hours × $50/hour average knowledge worker cost = $500/month in productivity
- Copilot cost: $30/month
ROI: 16:1 if the time savings materialize
The catch: Not everyone will save 30 minutes. Some will save more, some will save nothing. Adoption and training matter enormously.
Security and Compliance Considerations
Your Data Stays Yours
- Copilot uses your organizational data but doesn’t train the AI model on it
- Microsoft doesn’t use your business data to improve their AI
- Your data stays within your Microsoft 365 tenant
Permission Boundaries
Important: Copilot respects your existing permissions.
- It can only access what the user already has access to
- If someone can’t see a file in SharePoint, Copilot can’t either
- This also means if permissions are too loose, Copilot might surface information users shouldn’t access
The Permission Problem
Many organizations have overly permissive sharing settings. Before deploying Copilot:
- Audit your sharing settings
- Clean up overshared content
- Implement proper access controls
- Consider information barriers if needed
Compliance Certifications
Microsoft Copilot for Microsoft 365 is covered by:
- SOC 2
- ISO 27001
- HIPAA (with appropriate configuration)
- GDPR
- FedRAMP (certain offerings)
For regulated industries: Copilot can be used, but you need to ensure proper configuration and governance.
Common Questions
Do We Need to Deploy to Everyone?
No. You can license Copilot for specific users. Common approach:
- Start with power users (10-20%)
- Measure adoption and value
- Expand to more users based on results
What About ChatGPT - Why Pay for Copilot?
| Factor | ChatGPT | Copilot for M365 |
|---|---|---|
| Cost | $20/user/month | $30/user/month |
| Microsoft 365 integration | None | Deep |
| Your org data access | No | Yes (within permissions) |
| Enterprise controls | Limited | Full |
| Meeting transcription | No | Yes |
| Data boundaries | Public (or Enterprise) | Within your tenant |
Bottom line: ChatGPT is great for general AI tasks. Copilot is better if you need AI that works with your Microsoft 365 data.
Is It Difficult to Deploy?
Technically, deployment is simple - it’s a license assignment.
The real work:
- Permission cleanup (before deployment)
- User training (critical for adoption)
- Governance policies (what’s okay to use it for)
- Change management (getting people to actually use it)
Does It Work with On-Premise Exchange/SharePoint?
No. Copilot requires Microsoft 365 cloud services. On-premise data isn’t accessible.
Practical Recommendations
If You’re Considering Copilot
- Assess readiness: Are your people heavy Microsoft 365 users?
- Check permissions: Clean up oversharing before deploying
- Start small: Pilot with 5-10 power users
- Train thoroughly: Adoption requires education
- Measure value: Track time saved and quality improvements
If You’re Not Ready
Consider Copilot Pro ($20/user) for key individuals first, or continue with free Copilot features and standalone ChatGPT until your Microsoft 365 usage justifies the investment.
Red Flags (Probably Not Worth It Yet)
- Light Microsoft 365 usage
- Poor data organization
- Resistance to new tools
- No time for training
- Cost-conscious with unclear ROI
Green Lights (Likely Good Investment)
- Heavy document/email work
- Many meetings to summarize
- Complex data analysis needs
- Users already asking for AI tools
- Leadership support for adoption
The Bottom Line
Microsoft Copilot for Microsoft 365 is powerful but not magic. Its value depends on:
- How much you use Microsoft 365 (more = more value)
- What kind of work you do (knowledge work benefits most)
- Your data organization (better data = better AI)
- Adoption effort (training and change management)
At $30/user/month, it’s a significant investment. For the right users doing the right work, the ROI is clear. For others, it’s an expensive feature they won’t use.
Our recommendation: Start with a pilot, measure carefully, and expand based on demonstrated value.
Considering Copilot for your organization? Contact us to discuss readiness assessment and deployment planning.
Have More Questions?
Our team is here to help. Whether you're evaluating IT services or have a specific question about your technology, we're happy to have a conversation.