Microsoft · AI assistant integrated in Microsoft 365 apps

Microsoft 365 Copilot

Microsoft's AI assistant inside Word, Excel, PowerPoint, Outlook and Teams, grounded in your organisation's work data.

Provider: Microsoft
Latest confirmed model: Not applicable / not verified
Pricing: Paid only
Free plan: Yes
API: Yes
Status: Generally available
Last verified: Oct 19, 2026

Visit official website Pricing page API docs

What is Microsoft 365 Copilot?

Microsoft 365 Copilot adds AI to the Microsoft 365 apps people already use, drafting documents, analysing spreadsheets, summarising email threads and recapping Teams meetings. It works with your organisation's data through Microsoft Graph while respecting existing permissions. Copilot Chat is included at no extra cost with eligible Microsoft 365 plans, while the full Copilot licence is an add-on.

Knowledge workers spend much of their day on email, meetings and documents that could be drafted or summarised automatically.

Why use Microsoft 365 Copilot?

Practical benefits

Works inside familiar Office apps
Grounded in organisational data with existing permissions
Copilot Chat included with eligible plans
Agents and Copilot Studio for customisation

Who it suits

Organisations on Microsoft 365
Managers with heavy email and meeting load
IT teams standardising AI

When another tool may fit better

Teams on Google Workspace or Notion
Individuals without a qualifying Microsoft 365 plan

Learning curve: Beginner-friendly
Skills needed: Familiarity with Microsoft 365 apps

Example workflows

Ask Copilot in Teams to recap a meeting and list action items
Ask Copilot in Excel to analyse a table and suggest a chart

What can it do?

Copilot in Office apps Depends on planDrafting, summarising and analysis in Word, Excel, PowerPoint and Outlook.
Copilot in Teams Depends on planMeeting recaps; requires a Teams licence.
Copilot ChatIncluded at no additional cost with eligible Microsoft 365 plans.
AgentsCustom agents can be used on a metered basis for Copilot Chat customers.
Copilot APIsDeveloper APIs for extending Copilot, documented on Microsoft Learn.

Good for

Email triage
Meeting summaries
Document drafting
Spreadsheet analysis

Where it runs

WindowsmacOSWebiOSAndroidMicrosoft Teams

Pricing and plans

Paid only Copilot Chat is included with eligible Microsoft 365 plans. Microsoft 365 Copilot for enterprise is $30 per user/month paid yearly or $31.50 paid monthly (annual commitment). For small businesses, the Copilot Business add-on is $21 per user/month annually ($18 promotional first year through 31 Dec 2026) or $25.20 monthly, and bundles with Business Standard or Premium are available.

Plan	Price	Billing	Free trial / tier	Usage limits	Main inclusions	Model access	API access	Restrictions
Copilot Chat	Free	per month	Free tier	Agents billed on a metered basis	Web-grounded chat with work account Metered agents	—	—	Requires eligible work account
Microsoft 365 Copilot Business (add-on)	$25.20/mo $21/mo billed annually $18/month first year promo for orders 1 Jul-31 Dec 2026 with annual commitment	per month	One-month trial, credit card required	Up to 300 users	Copilot in Office apps and Teams	—	—	Requires eligible Microsoft 365 Business plan
Microsoft 365 Business Standard with Copilot	$28.20/mo $23.50/mo billed annually Per user	per month	—	—	Business Standard apps plus Copilot	—	—	—
Microsoft 365 Business Premium with Copilot	$38.40/mo $32/mo billed annually Per user	per month	—	—	Business Premium apps and security plus Copilot	—	—	—
Microsoft 365 Copilot (enterprise add-on)	$31.50/mo $30/mo billed annually Monthly payment still requires an annual commitment	per month	—	—	Copilot across Microsoft 365 apps Copilot Studio agents	—	—	Requires qualifying Microsoft 365 or Office 365 plan

Prices in USD · US list price · Taxes may apply · Verified Oct 19, 2026

Official pricing page (opens in a new tab)

API and developer access

Official API: Yes
Documentation: API docs (opens in a new tab)
Authentication: Not documented
Pricing model: Not documented
Free API quota: None documented — the free plan above (if any) is for the app, not the API
Rate limits: Not documented
Context / input limits: Not documented
SDKs: Not documented
Streaming: Not documented
Batch processing: Not documented
Structured output: Not documented
Tool / function calling: Not documented
Commercial use: See the provider terms
Data retention & privacy: See the provider privacy terms

A free Microsoft 365 Copilot account is not the same thing as free API access. Unless a free API quota is listed above, API calls are billed separately.

Verified Oct 19, 2026

Advantages and disadvantages

Advantages

Deep integration with Microsoft 365
Enterprise security and permissions
Copilot Chat at no extra cost

Disadvantages

Requires a qualifying Microsoft 365 licence
Add-on cost per user
Trials require a credit card and convert to paid

Privacy: Works with organisational data via Microsoft 365 permissions.

Real-world examples

An employee using Copilot Chat

Sign in with a work account
Open Copilot Chat
Ask it to draft a project update

free plan works

A manager catching up after leave

Open Copilot in Outlook
Ask for a summary of key threads
Draft replies from the summary

needs paid plan

A team recapping a Teams meeting

Enable transcription in the meeting
Ask Copilot for decisions and action items
Share the recap in the channel

needs paid plan

Microsoft 365 Copilot alternatives

Notion AI

AI built into Notion's workspace for writing, searching, meeting notes and running multi-step agent tasks across your pages.

has a free plan · offers an API

Microsoft 365 Copilot vs Notion AI

Gemini Notebook (formerly NotebookLM)

Google's source-grounded research notebook, renamed from NotebookLM to Gemini Notebook in July 2026.

has a free plan · no public API

Microsoft 365 Copilot vs Gemini Notebook (formerly NotebookLM)

Otter.ai

An AI meeting assistant that transcribes calls live, writes summaries and action items, and answers questions across your meetings.

has a free plan · offers an API

Microsoft 365 Copilot vs Otter.ai

Zapier

A no-code platform for connecting apps with automated workflows (Zaps), AI agents, chatbots and tables.

has a free plan · offers an API

Microsoft 365 Copilot vs Zapier

Compare Microsoft 365 Copilot with these side by side

Frequently asked questions

Is Microsoft 365 Copilot free?

Copilot Chat is included at no extra cost with eligible Microsoft 365 plans. The full Copilot in Office apps is a paid add-on.

How much does Microsoft 365 Copilot cost for enterprises?

$30 per user per month paid yearly, or $31.50 paid monthly with an annual commitment.

What about small businesses?

The Copilot Business add-on is $21 per user per month annually (a first-year promotion of $18 runs until 31 Dec 2026) or $25.20 monthly, for up to 300 users.

Do I need another licence?

Yes. You need a qualifying Microsoft 365 plan, and Copilot in Teams requires a Teams licence.

Is there a free trial?

One-month trials are offered; they require a credit card and convert to paid unless cancelled.

Can developers extend Copilot?

Yes. Microsoft documents Copilot APIs and agent extensibility on Microsoft Learn, and Copilot Studio is available for building agents.