Key takeaways
- Microsoft's AI assistant that works inside Word, Excel, Outlook and Teams.
- Best for: Teams already paying for Microsoft 365, Businesses that want AI help in Outlook, Word and Teams.
- Pricing: Paid plans from Copilot Business add-on: $18.00 per user per month, paid yearly (promotional through December 31, 2026), as listed on November 6, 2026.
- Business data: Microsoft says prompts, responses and data accessed through Microsoft Graph are not used to train foundation models.
What Microsoft 365 Copilot does
Microsoft 365 Copilot adds an AI assistant to the Microsoft 365 apps. It uses your emails, files and meetings that you already have permission to see. A small business on Microsoft 365 can buy it as an add-on or bundled with a Business plan.
Who it’s for
A good fit for
- Teams already paying for Microsoft 365
- Businesses that want AI help in Outlook, Word and Teams
Not a good fit for
- Teams that do not use Microsoft 365
- Owners who want a single low monthly price, because Copilot is an extra cost
Microsoft 365 Copilot pricing
| Plan | Price |
|---|---|
| Microsoft 365 Business Standard with Copilot | $23.50 per user per month, paid yearly |
| Microsoft 365 Business Premium with Copilot | $32.00 per user per month, paid yearly |
| Microsoft 365 Copilot Business add-on | $18.00 per user per month, paid yearly, promotional price |
As listed on Microsoft’s pricing page on November 6, 2026. Prices change, so check the live page before you buy.
Key features
- Works with your files
- Copilot uses content in Microsoft Graph that you already have permission to open.
- Admin choice of models
- Admins can decide whether to allow models from Anthropic and OpenAI.
- Agent controls
- Admins choose which agents are allowed in the organization.
- Activity history
- Admins can manage stored interactions with Microsoft Purview.
How to get started with Microsoft 365 Copilot
- Pick a Copilot license that fits your Microsoft 365 plan.
- Make sure your Microsoft 365 apps and privacy settings allow Copilot.
- Assign Copilot licenses to your users in the admin center setup guide.
- Send a welcome email and share the in-product Copilot onboarding.
Steps based on Microsoft’s own documentation. Menus change, so follow the live page if they differ.
Full walkthroughHow to Set Up Microsoft 365 Copilot for Your TeamAccounts, team invites, admin and data settings, connecting your apps, and three tasks to try first.Business data and privacy
Microsoft says prompts, responses and data accessed through Microsoft Graph are not used to train foundation models. Admins can manage stored interactions with Purview and choose which agents and third-party models are allowed.
Source: Microsoft’s own documentation.
Microsoft 365 Copilot alternatives
ChatGPT
by OpenAI
A general AI assistant for writing, research and everyday office tasks.
Best for Teams that want one general assistant for many tasks
Free plan, paid plans from Business Standard seat: $20 per user per month, billed yearly
Claude
by Anthropic
An AI assistant for writing, analysis and working through long documents.
Best for Teams that work with long documents and written content
Free plan, paid plans from Pro: $17 per month, billed yearly
Gemini
by Google
Google's AI assistant, built into Gmail, Docs and Meet for Workspace teams.
Best for Teams already paying for Google Workspace
Paid plans from Business Starter: $7 per user per month with a 1-year commitment
Perplexity
by Perplexity
An AI search assistant that answers questions with web sources.
Best for Owners who do a lot of online research
Free plan, paid plans from Pro: $17 per month, billed yearly
Guides that use Microsoft 365 Copilot
Microsoft 365 Copilot: common questions
How much is Microsoft 365 Copilot for a small business?
Microsoft lists a Copilot Business add-on at $18.00 per user per month paid yearly as a promotional price. Bundles with Business Standard and Business Premium are listed at higher prices.
Does Microsoft 365 Copilot train on my company data?
Microsoft says prompts, responses and Graph data are not used to train foundation models. It also says Copilot only shows content a user can already view.
Sources
Read on November 6, 2026. Vendors change prices and menus, so check the live page before you buy.
About the author
Andy Kang, AI Partner Team. Andy Kang writes the AI directory for AI Partner Team, which sets up and builds AI tools for small businesses alongside managed IT. Each page is written from the vendor’s own pricing, help and trust pages, and shows the day those pages were checked.
- Facts come from the vendor’s own website and help docs, linked on every page.
- Each page shows the date we last read those sources.
- We do not score or rank tools. We say who each one suits and who it does not.
- If a vendor does not publish a price, we say so instead of guessing.