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Microsoft 365 Copilot for business: what it costs and what it does

Microsoft 365 Copilot brings AI directly into Word, Outlook, Teams, Excel and PowerPoint. Add-on at $30 per user per month. Who is it for and when is ChatGPT the better choice?

Written by Loek Delahaye, founder, Delahaye Solutions · ex-CTO with 10+ years in software and AIUpdated: 22 June 2026

Short answer

Microsoft 365 Copilot costs $30 per user per month as an add-on on top of an M365 Business Standard or Business Premium subscription (indicative; verify with Microsoft). It is built into Word, Outlook, Teams, Excel and PowerPoint and has direct access to your files and emails within your Microsoft tenant.
Copilot is the best choice if your organisation already works in the Microsoft 365 ecosystem and wants to embed AI into the tools employees use daily. Use ChatGPT Plus ($20/month) if you want a standalone, flexible AI assistant without ties to a specific software environment.
Microsoft 365 Copilot processes your data exclusively within the Microsoft EU Data Boundary (for EU customers) and does not use it to train language models. A Data Processing Agreement (DPA) is available through the Microsoft Product Terms. EU AI Act Article 4 (in force 2 February 2025) requires documentation of AI use and role-specific training for employees.

What is Microsoft 365 Copilot and who is it for?

Microsoft 365 Copilot is an AI assistant built into the Microsoft 365 apps you already use: Word, Outlook, Teams, Excel and PowerPoint. It has direct access to your files, emails and meeting notes within your Microsoft tenant and can use that context to write text, summarise content, draft emails and analyse data. Copilot is best suited for organisations already working in the Microsoft 365 ecosystem that want to embed AI without introducing another standalone tool. For businesses without a Microsoft 365 foundation, ChatGPT Plus is a cheaper and more flexible option.

Five apps

What does Copilot do in each Microsoft 365 app?

Microsoft 365 Copilot is available in five core apps. Per app: the main functionality and a concrete use case.

Word: writing and rewriting documents

Copilot in Word writes new documents based on a prompt, rewrites existing text in a different tone or style and summarises long documents in a few lines. Concrete use case: give Copilot a short briefing and it generates a first draft of a proposal, report or procedure. You then edit within the Word environment you already know. This typically saves 30 to 60 minutes on drafting standard documents.

Outlook: drafting and summarising emails

Copilot in Outlook drafts emails based on a few keywords, adjusts the tone (formal or informal) and summarises long email threads in three lines. Concrete use case: an account manager handling ten client emails per day uses the summary to quickly understand context and Copilot to draft replies. The result is faster processing without loss of quality. Copilot needs access to your Outlook mailbox within the Microsoft tenant.

Teams: summarising meetings and capturing action points

Copilot in Teams transcribes meetings in real time, automatically creates a summary and lists action points. Participants who join late can ask Copilot what they missed. Concrete use case: a project manager uses the Teams summary as the basis for the meeting report without manually taking notes. Transcription requires Microsoft Teams Premium or the Copilot add-on to be active and that participants are informed that recording is taking place.

Excel: analysing data and creating charts

Copilot in Excel analyses tables, answers questions about data in plain language and creates charts based on your question. It also writes formulas and can flag anomalies or trends in your dataset without needing to set up pivot tables manually. Concrete use case: a finance manager asks Copilot to compare revenue by region and create a chart, without needing formula-level Excel knowledge. Copilot in Excel works best with structured tables (Excel table objects).

PowerPoint: generating presentations from documents

Copilot in PowerPoint creates a presentation from an existing Word document or a prompt. It selects a layout, distributes content across slides and adds relevant images from the Microsoft Stock library. Concrete use case: a consultant converts an existing report into a client presentation in under five minutes. The presentation requires editorial review afterwards, but the basic structure is in place. Copilot in PowerPoint works best as a starting point, not as a finished product.

When to choose

Copilot or ChatGPT: when to choose which?

Choose Microsoft 365 Copilot if your organisation already works in Microsoft 365, you want to embed AI in the daily office environment and you are prepared to pay the add-on costs of $30 per user per month. Copilot is stronger than ChatGPT when it comes to context: it has direct access to your files, emails and meeting notes, so it can give answers tailored to your own data. Choose ChatGPT Plus ($20/month per user) if you want a flexible, standalone AI assistant that is not tied to a software environment, or if your organisation does not have a Microsoft 365 foundation. ChatGPT is more broadly applicable for code, creative tasks and ad-hoc analysis outside the Microsoft workflow. A combination is also possible: Copilot for the embedded office environment, ChatGPT for tasks outside that context. GDPR considerations are comparable for both tools, provided you use the Microsoft EU Data Boundary and the ChatGPT Business API (without training data).

Frequently asked questions

Frequently asked questions about Microsoft 365 Copilot

What does Microsoft 365 Copilot cost per user per month?

Microsoft 365 Copilot costs indicatively $30 per user per month as an add-on on top of an M365 Business Standard or Business Premium subscription. M365 Business Standard costs indicatively €12.50 per user per month, bringing total costs to approximately $42 to $45 per user per month. Prices are indicative and exclude VAT; check current rates at microsoft.com. Annual licensing is standard; monthly cancellable variants are available through CSP partners.

Is Microsoft 365 Copilot GDPR compliant?

Yes. Microsoft 365 Copilot processes EU customer data exclusively within the Microsoft EU Data Boundary and does not use it for training the underlying language models. A Data Processing Agreement (DPA) is available through the Microsoft Product Terms. You remain the data controller and are responsible for lawful use and for not inputting special category personal data without an adequate legal basis. Always check the current Microsoft documentation for your specific tenant configuration.

Do I need an M365 Business Standard subscription for Copilot?

Yes. Microsoft 365 Copilot requires at minimum an M365 Business Standard or Business Premium subscription (or an equivalent Enterprise plan such as E3 or E5). The Copilot add-on cannot be added to M365 Business Basic. This means you need at least two licences per user: the base M365 plan and the Copilot add-on. Check the current requirements at microsoft.com, as Microsoft periodically updates its licensing terms.

Can a business use Copilot without training employees?

No. EU AI Act Article 4 came into force on 2 February 2025 and requires every organisation using AI tools commercially to train employees role-specifically on the use, limitations and risks. For Microsoft 365 Copilot, this means at minimum: employees know which data Copilot can access, understand that output must be verified and know the GDPR boundaries around personal data. An AI register with the tools used and basic role-specific training are the minimum requirements.

What is the difference between Microsoft Copilot (free) and Microsoft 365 Copilot (paid)?

Microsoft Copilot (free, at copilot.microsoft.com) is a standalone AI assistant comparable to ChatGPT. Microsoft 365 Copilot (paid, $30/user/month add-on) is built into the Microsoft 365 apps and has direct access to your organisation's data: files in SharePoint and OneDrive, emails in Outlook and meetings in Teams. The difference is contextual access: the paid version knows your organisation's data; the free version only works with what you type in yourself.

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