Microsoft 365 Copilot
6.6/10An AI assistant built into Word, Excel, PowerPoint, Outlook and Teams that drafts, summarizes and analyzes work content from an organization's Microsoft 365 data.
Data last updated November 2026 · Our methodology
Overview
Microsoft 365 Copilot is Microsoft's paid AI assistant for workplace users. It works inside Word, Excel, PowerPoint, Outlook and Teams, and draws on the user's email, calendar, SharePoint and OneDrive files, meetings and chats to ground its answers. Common uses are drafting documents and emails, summarizing long email threads, writing Teams meeting recaps with action items, and getting help with Excel formulas. The license also includes Copilot Chat, Search, Pages, Notebooks and agents, and it supports Copilot Studio. Copilot follows the tenant's existing security, privacy and compliance settings. Pricing is per user, and Copilot is an add-on, so each user also needs an eligible base Microsoft 365 license. Organizations with 1 to 300 users can buy Copilot Business at a $21 list price per user per month on an annual commitment. A third-party guide reports $25.20 for month-to-month billing, and an $18 first-year promotion that runs through December 31, 2026. Larger organizations on E3 or E5 pay $30 per user per month, billed yearly. It suits organizations that already standardize on Microsoft 365 and want AI inside the tools staff already use. Its main limitation is cost: the add-on comes on top of the base license, and reviewers report inconsistent performance across the Office apps, plus usage limits.
Our Rating
Who Microsoft 365 Copilot is best for
Good fit
The $30 E3 or E5 add-on has no seat cap and inherits the tenant's existing compliance settings.
Drafting documents and proposals and summarizing meetings in Word and Teams match daily consulting work.
Firms with up to 300 users can buy the cheaper Copilot Business SKU, and larger ones need the enterprise add-on.
Teams meeting recaps with action items and summaries of chats help distributed teams.
Copilot Business was launched at $21 specifically for Microsoft 365 Business customers with 1 to 300 users.
Less suited
It follows the tenant's existing security and compliance settings and supports Copilot Studio agents for administrators.
- Finance Teams5/10
It helps with Excel formulas and data analysis inside existing spreadsheets.
Copilot Business works only with commercial work or school accounts, not personal subscriptions.
Pros & Cons
Pros
- Works directly inside Word, Excel, PowerPoint, Outlook and Teams, so users don't need to switch to a separate tool.
- Grounds answers in the organization's own email, SharePoint and OneDrive data, and respects the tenant's existing security and compliance settings.
- Teams meeting summaries with action items save time for meeting-heavy teams.
- Copilot Business brought the price for organizations with up to 300 users down to $21 from $30 while keeping the same functionality.
Cons
- It is an add-on, so the per-user cost comes on top of the base Microsoft 365 license.
- Reviewers report inconsistent output quality across the Office apps.
- Some users report daily usage or message limits.
- Overlapping product names (Copilot, Copilot Pro, Copilot Business) have led buyers to purchase the wrong tier.
Key Features
Microsoft 365 Copilot Pricing
Microsoft 365 Copilot Business
or $252/user/year (save 17%)
- 1 to 300 users
- Copilot in Word, Excel, PowerPoint, Outlook and Teams
- Copilot Chat with work data, Search, Pages, Notebooks and agents
- Add-on to Microsoft 365 Business Basic, Standard, Premium or Apps for Business
- $18 first-year promotion on annual commitment through Dec 31, 2026 (third-party report)
Microsoft 365 Copilot (Enterprise)
or $360/user/year
- No seat cap
- Billed yearly
- Add-on to Microsoft 365 E3 or E5
- Same Copilot capabilities across Microsoft 365 apps
Frequently Asked Questions
No. Copilot Business requires a Microsoft 365 Business plan, and the enterprise add-on requires E3 or E5.
Microsoft says Copilot Business has the same functionality as Microsoft 365 Copilot. The difference is that it costs $21 per user per month and is limited to organizations with 1 to 300 users.
A third-party pricing guide reports Copilot Business at $25.20 per user per month on month-to-month billing, against $21 on an annual commitment. The enterprise add-on is listed as paid yearly.
Yes. Microsoft says it follows the organization's existing security, privacy and compliance settings, with no extra setup.
Generally no. Existing customers move to Copilot Business at renewal, but they can buy Copilot Business licenses alongside their existing ones.
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