Executive Summary
Microsoft 365 Copilot is transforming how we work by embedding powerful AI directly into apps like Word, Excel, Outlook and Teams. But with multiple versions available, from free tools to business-grade licences, it’s not always clear which one is right for you. In this article, we break down the different versions of Microsoft Copilot, highlight its top features (now powered by GPT-5), and answer the most common questions we hear from customers.
Introduction
Since its launch, Microsoft 365 Copilot has been one of the most talked-about AI tools in the business world. By combining large language models (LLMs) with your data in Microsoft 365, Copilot helps users write better emails, analyse data faster and automate repetitive tasks, all within the apps they already know.
But not all Copilot experiences are created equal. Microsoft now offers several versions of Copilot, each with its own features, pricing and target audience. Whether you’re a business leader looking to empower your team or an individual exploring AI tools, understanding these options is key to making the right choice.
The Different Versions of Microsoft Copilot
Copilot (Free Version)
Microsoft offers a free version of Copilot built into products like Edge, Bing and Windows 11. This version is powered by Copilot in Bing, which uses OpenAI’s GPT models to provide general-purpose AI assistance, such as summarising web pages, generating ideas or answering questions.
✅ Best for: Casual users and quick tasks
❌ Limitations: No integration with Microsoft 365 apps or your organisational data.
Security note: This version is not covered by Microsoft’s enterprise compliance commitments and is not suitable for handling sensitive or business-critical information. It is intended for general use and does not access Microsoft Graph or your Microsoft 365 environment.
Microsoft 365 Copilot Chat (Free, Secure AI Chat)
Microsoft 365 Copilot Chat is a free AI chat experience included with most Microsoft 365 plans. It allows users to interact with AI in a secure, web-grounded environment, ideal for brainstorming, summarising content or generating ideas.
✅ Best for: Users who want secure AI chat without full data integration
💷 Pricing: Free with eligible Microsoft 365 plans
Security note: Copilot Chat is covered by Microsoft’s enterprise-grade security and compliance. However, it does not access your organisational data (e.g. emails, documents, Teams) unless you have a full Copilot licence. It is a great entry point for businesses exploring AI without committing to full integration.
Copilot Pro
Designed for individual users, Copilot Pro is a paid upgrade that unlocks Copilot features in Word, Excel, PowerPoint, Outlook and OneNote, but only if you already have a Microsoft 365 Personal or Family subscription.
✅ Best for: Power users and freelancers
💷 Pricing: £19/month (subject to change)
❌ Limitations: Not suitable for business or enterprise use
Security note: While Copilot Pro benefits from Microsoft’s consumer-grade security, it does not include enterprise-level data protection or compliance features. It is not recommended for use with sensitive business data.
Microsoft 365 Copilot (Licensed for Business)
This is the business-grade version of Copilot, available to organisations with qualifying Microsoft 365 licences, including Business Standard and Business Premium. It integrates deeply with your company’s data such as emails, documents, calendars and chats, and offers advanced features like Copilot in Teams, Excel and Outlook.
✅ Best for: SMEs and commercial teams
💷 Pricing: £23.10/user/month (paid annually) or £24.26/user/month (paid monthly), both with an annual commitment. Prices exclude VAT.
Requirements: Microsoft 365 Business Standard or Premium licence plus Copilot add-on
Security note: This version is fully integrated with Microsoft 365 and benefits from Microsoft’s enterprise-grade security, compliance and data governance. It uses Microsoft Graph to access your organisational data securely and respects your existing permissions and policies. Please note that to keep your date secure, your 365 environment needs to be configured to best practice and is not necessarily secure out of the box.
Copilot Studio
For organisations looking to customise and extend Copilot, Microsoft offers Copilot Studio. This tool allows developers and IT teams to build tailored Copilot experiences using low-code tools, integrating with internal systems and workflows.
✅ Best for: IT teams and developers
💡 Use cases: Custom chatbots, workflow automation, internal knowledge bases
Security note: Copilot Studio is built on Microsoft’s Power Platform and inherits its security, compliance and governance capabilities. It is suitable for enterprise use and can be configured to meet specific data protection requirements.
Copilot in Microsoft 365 Apps (With Eligible Licence)
When licensed, Microsoft 365 Copilot is embedded into the apps your team already uses every day, including Word, Excel, Outlook, PowerPoint, OneNote, and Teams.
With a Business Basic, Standard, or Premium licence, users have access to Copilot Chat and can receive contextual assistance within open documents or emails, drawing on immediate content in use. However, this base experience does not include the full “Work” data integration, responses are primarily grounded in public web data or local context only.
To unlock Copilot’s full potential, a Microsoft 365 Copilot add-on licence is required. This enables deeper, organization-wide integration with your Microsoft Graph data, including SharePoint, OneDrive, Outlook, and Teams, allowing Copilot to draw intelligently on your work files, meetings, emails, and chats for richer, context-aware assistance.
Teams-specific availability nuances:
Without the Copilot add-on: Teams users can access the Copilot Chat app in the left rail, but responses are limited to public web data and can’t reference internal meetings, files, or chats.
With the Copilot add-on: Copilot in Teams becomes fully integrated — it can summarize meetings and chats, extract action items, and answer questions using your organization’s data. Users can also interact with AI agents directly in chats, channels, and meetings for real-time insights.
Teams Premium: Offers AI-powered Intelligent Recap, meeting templates, branding, and security enhancements, but does not include the full Microsoft 365 Copilot experience or access to your broader Microsoft Graph work data.
✅ Available in: Word, Excel, PowerPoint, Outlook, OneNote, and Teams
🔐 Access requires:
Basic Copilot Chat: Included with Microsoft 365 Business (Basic, Standard, or Premium)
Full Copilot integration: Microsoft 365 Business + Copilot add-on licence
(Optional) Teams Premium for enhanced AI meeting features such as Intelligent Recap and live translation
❌ Not available in these apps with the free version or Copilot Chat alone
Security note: When used with a licensed Microsoft 365 Copilot subscription, these integrations are protected by Microsoft’s enterprise-grade security, compliance and data governance. Copilot respects your organisation’s existing permissions and policies.
Below is an expanded comparison table with all relevant options, including free, chat, and pro versions.
| Option | Best For | Key Features | Licensing & Pricing | Security Notes |
|---|---|---|---|---|
| Copilot Free (Web version) | Individuals, casual users | Access via copilot.microsoft.com Basic AI chat capabilities Limited integration with personal Microsoft account data | Free (requires Microsoft account) | Microsoft account-level privacy and security; limited enterprise controls |
| Copilot Chat (Web, mobile, Edge) | Individuals, professionals seeking quick AI assistance | Conversational AI interface Multi-platform access (web, mobile, Edge sidebar) Can answer questions, draft emails, summarise content | Free (requires Microsoft account) | Standard Microsoft security for consumer data |
| Copilot Pro | Power users, creators, home businesses | Enhanced AI performance Priority access to new features Integration with Word, Excel, PowerPoint, Outlook, OneNote (personal account) | £19/month (per user, personal subscription) | Personal Microsoft account security; not for enterprise data protection |
| Microsoft 365 Copilot Chat | Light Business Users | It allows users to interact with AI in a secure, web-grounded environment, ideal for brainstorming, summarising content or generating ideas No access to Company Data | Included in eligible Microsoft 365 Licenses | Copilot Chat is covered by Microsoft’s enterprise-grade security and compliance. However, it does not access your organisational data |
| Microsoft 365 Copilot (Business) | SMEs, commercial teams | Integrated with company data (emails, documents, calendars, chats) Advanced features in Teams, Excel, Outlook, etc. | £23.10/user/month (annual) or £24.26/user/month (monthly, annual commitment). Requires Business Standard or Premium plus Copilot add-on. Prices exclude VAT. | Enterprise-grade security, compliance, data governance |
| Copilot Studio | IT teams, developers | Build custom Copilot experiences Low-code integration with internal systems Custom chatbots, workflow automation | Copilot Studio licence required (pricing not specified) | Built on Microsoft Power Platform; inherits enterprise security |
| Copilot in Microsoft 365 Apps | Teams using Word, Excel, PowerPoint, Outlook, OneNote, Teams | AI-powered assistance in everyday apps Contextual help within open documents and emails Full integration with Microsoft Graph data (with add-on) Teams-specific features like meeting summaries and chat insights (with add-on) | Basic Copilot Chat included with Microsoft 365 Business (Basic, Standard, or Premium) Full Copilot experience requires Microsoft 365 Business plus Copilot add-on licence Teams Premium (optional) adds Intelligent Recap and other meeting features | Protected by Microsoft’s enterprise-grade security, compliance, and governance. Data access is scoped to your organisation’s Microsoft 365 environment and governed by Microsoft Graph permissions. |
Top 5 Things Microsoft 365 Copilot Can Do
Whether you’re using Copilot Pro or the business version of Microsoft 365 Copilot, here are five standout features that show just how powerful this AI assistant can be:
1. Draft Emails Instantly in Outlook
Copilot can write professional, personalised emails in seconds. Just give it a prompt like “reply to this with a polite decline” or “summarise this thread and suggest a meeting time.”
2. Summarise Meetings in Microsoft Teams
Missed a meeting? No problem. Copilot can generate a summary of what was discussed, highlight key decisions and even suggest action items, all without you needing to watch the recording.
3. Analyse Data in Excel
Copilot helps you make sense of complex spreadsheets by generating formulas, creating pivot tables and offering insights like “what are the top 5 sales trends this quarter?”
4. Generate Content in Word
Need to write a proposal, report or blog draft? Copilot can create a first version based on your notes or prompts, saving hours of writing time.
5. Create Presentations in PowerPoint
Copilot can turn a Word document or a few bullet points into a full PowerPoint deck, complete with suggested layouts, images and speaker notes.
Top 5 FAQs About Microsoft 365 Copilot
Copilot is the general AI assistant available for free in Bing and Windows. Copilot Pro is a paid upgrade for individuals that unlocks AI features in Microsoft 365 apps, but it’s not suitable for business use.
No, Copilot is not included by default. You need a qualifying Microsoft 365 licence (e.g. Business Standard or Premium) and must purchase the Copilot add-on separately.
Yes, but only the free version in Bing, Edge and Windows, or Copilot Chat. To use Copilot in Word, Excel or Outlook, you’ll need a Microsoft 365 subscription and possibly a Copilot licence.
Copilot is integrated into Word, Excel, PowerPoint, Outlook, OneNote and Teams, with more apps being added regularly. The experience varies depending on your licence.
Yes, as of August 2025, Microsoft 365 Copilot is powered by GPT-5. This means users benefit from faster, smarter and more context-aware AI assistance across apps like Word, Excel, Outlook and Teams. The “Try GPT-5” button confirms direct access to the latest model.
Conclusion
Microsoft 365 Copilot is a powerful productivity tool that’s reshaping how we work. Whether you’re using the free version in Bing, exploring Copilot Chat or deploying Copilot across your business, understanding the differences between each version, and what Copilot can actually do, is essential.
If you’re unsure which Copilot licence is right for your organisation, or need help with setup and deployment, Get Support IT Services is here to help. We can guide you through licensing, implementation and training to make sure you get the most out of Microsoft Copilot.