Copilot Chat vs Microsoft 365 Copilot
They share a name and a look, so people assume they are the same product at different prices. They are not. One answers questions from the web. The other works inside your own files and email.
The real dividing line: your data
Copilot Chat answers from the open web and general knowledge, with commercial data protection so your prompts are not used to train models. It does not read your inbox, your SharePoint files, or your Teams chats.
Microsoft 365 Copilot does. The paid seat is grounded in the Microsoft Graph, which is Microsoft's word for your organization's own content: your emails, documents, meetings, and chats, within your existing permissions. That is what lets it draft a reply that knows the thread, or summarize a document you have open.
So the split is not "basic versus advanced." It is "answers about the world" versus "answers about your work."
Where each one lives
Copilot Chat is a chat window: on the web, in the Microsoft 365 app, and in Teams. You go to it and ask.
Microsoft 365 Copilot comes to you. It sits inside Word to draft and rewrite, inside Excel to analyze, inside PowerPoint to build slides, inside Outlook to summarize and reply, and inside Teams to recap meetings you attended. It also unlocks agents like Researcher and Analyst.
Side by side
| Copilot Chat | Microsoft 365 Copilot | |
|---|---|---|
| Price | Included with most M365 plans | About $30 per user / month |
| Grounded in the web | Yes | Yes |
| Grounded in your files and email | No | Yes, via Microsoft Graph |
| Works inside Word, Excel, Outlook, Teams | No | Yes |
| Meeting recap in Teams | No | Yes |
| Agents | Pay-as-you-go on Copilot Credits | Included and extensible |
| Data protection | Enterprise data protection | Enterprise data protection |
List prices are estimates in USD on an annual commitment and change over time. Confirm current pricing with your Microsoft partner.
How agents and Cowork billing fit in
Copilot Chat can run some agents on a pay-as-you-go basis, billed on Copilot Credits at about a cent each, so you can try automation without buying a full seat for everyone. Microsoft 365 Copilot includes agent access as part of the seat. Cowork, the agent-style work surface, draws on the same Copilot Credits model for metered tasks.
Which one your team needs
Give everyone Copilot Chat, because most already have it. Then buy Microsoft 365 Copilot seats for the people who spend their day in Office and email and would save real time by having the assistant work across their own content. You do not have to license the whole company at once. Start with the roles that write, analyze, and sit in meetings.
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Is Copilot Chat free?
For organizations, Copilot Chat is included with most Microsoft 365 subscriptions at no extra per-seat cost, with enterprise data protection. Microsoft 365 Copilot is the separate paid seat that adds access to your own work data and the Office apps.
What does the paid Microsoft 365 Copilot seat add?
It grounds Copilot in your own emails, files, meetings, and chats through the Microsoft Graph, and it works inside Word, Excel, PowerPoint, Outlook, and Teams. It also includes agents like Researcher and Analyst.
How much is Microsoft 365 Copilot?
About $30 per user per month on an annual commitment, on top of a qualifying Microsoft 365 plan. Confirm current pricing with your Microsoft partner.
Do I have to buy Copilot for everyone?
No. A common approach is to give everyone the included Copilot Chat and buy paid Microsoft 365 Copilot seats for the roles that live in Office and email, where the time saved is largest.