What is Microsoft Copilot? An In-Depth Guide to Versions, Pricing & Uses

Microsoft Copilot is an artificial intelligence (AI)-powered chat service integrated with a wide range of Microsoft applications and services. Its purpose is to enhance user efficiency and productivity by generating content, offering suggestions, and automating tasks across platforms like Windows, Microsoft 365, and GitHub. Microsoft continues to expand Copilot’s features and integrations, making it a versatile tool for both individuals and organizations.

Copilot operates using multiple large language models (LLMs), including OpenAI’s GPT-4o and a proprietary Microsoft model. It leverages graphics processing units for training and combines central processing units and GPUs for inference—the process of producing original AI-generated output. Designed to harness the latest processing advancements, Copilot takes advantage of new Intel and AMD CPUs that include neural processing units. These NPUs act as AI accelerators, offloading tasks from the CPU and GPU and enabling inference even on PCs without powerful GPUs. Through the Copilot+ PC program, customers can identify devices capable of handling complex AI workloads locally.

What Are the Versions of Microsoft Copilot?

As of October 2024, end users interacting with Windows and Microsoft productivity applications can access four main versions of Copilot:

Microsoft Copilot – This free, lightweight edition is available to anyone using Windows, Microsoft Edge, or Bing. It’s ideal for general users and small businesses seeking basic AI assistant support without deep workflow integration.

Copilot Pro – Geared toward power users, this version provides priority access to the latest AI models during peak times, delivering faster responses. It also includes Image Creator from Designer (formerly Bing Image Creator).

Microsoft 365 Copilot – Offered as an add-on for Microsoft 365 Business Standard, Business Premium, or Enterprise plans, this version taps into organizational data and internal sources to deliver detailed, context-aware answers within Office apps.

Microsoft Copilot Studio – This tool allows users to build customized AI assistants tailored to specific needs. Users can define rules, connect these assistants to websites or internal workflows, and integrate them with over 1,200 third-party applications and services.


Beyond these four, Microsoft offers specialized Copilot versions for various business technologies:

GitHub Copilot suggests code segments to speed up development.
Copilot in Azure assists with cloud management and operations.
Copilot in Power Apps streamlines app development.
Microsoft Copilot for Security delivers generative AI-powered automation and insights for security teams, offering features like incident summaries, next-step suggestions, and malware analysis.

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On Windows, Copilot integrates directly with the OS to automate tasks, search files, and respond to voice commands. As of September 2024, it is available in preview for select Windows 10 users and is rolling out via the latest Windows 11 update. When enabled, a Copilot icon appears in the taskbar.

Screenshot of a Windows 11 desktop showing the Copilot icon pinned to the taskbar.
A Windows desktop with Copilot pinned to the toolbar.

In October 2024, Microsoft announced new features like Copilot Voice, which accepts spoken prompts and responds with audio, and Copilot Vision, which provides contextual suggestions based on browsing activity in Microsoft Edge. Users can test these and other experimental features through Copilot Labs, a hub for gathering feedback on upcoming releases.

How to Access Microsoft Copilot and What It Does

The Copilot icon is located in the Windows 11 toolbar, typically at the bottom of the screen, where Cortana once resided. Clicking it opens access to voice commands, searches, and file navigation.

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Copilot is also accessible through:

Bing, via the “Ask Copilot” prompt below the search box.
Microsoft 365 apps, via a Copilot button in the toolbar.
Microsoft Outlook, through the Add-ins or Help section.
Microsoft Teams, via the Copilot icon in chats or the main menu.

Flowchart diagram illustrating how a user prompt flows through data sources and Microsoft Graph to generate a Copilot response in Microsoft 365.
How Copilot handles a prompt for a user within Microsoft 365.

A dedicated Copilot app serves as a hub for general inquiries, allowing users to create files, generate content, or get redirected to appropriate apps like Excel or PowerPoint. In Teams, Copilot can suggest responses, translate languages in real time, and provide meeting summaries with key points and action items.

Users interact with Copilot using natural language, and detailed, keyword-rich prompts yield better results. Capabilities include answering questions, generating text and images, formatting data, providing feedback, and summarizing emails. Organizations can also create custom Copilot agents in tools like SharePoint to build business chatbots for internal or customer-facing tasks. Copilot Pages offers a collaborative space with integrated AI tools.

Microsoft Copilot Licensing Requirements and Pricing

Licensing for Copilot varies by version, with Microsoft 365 Copilot having the most complex requirements. As of October 2024, it requires one of the following licenses:

Microsoft 365 E3, E5, F1, F3, A1, A3, or A5.
Office 365 E1, E3, E5, F3, A1, A3, or A5.
Various plans for Exchange, SharePoint, OneDrive, Teams, Planner, Project, Clipchamp, Visio, and more.

Additional requirements include proper network configuration, update deployment, and enabling features like Microsoft Loop. The free Copilot version lacks integration with internal systems, while paid editions offer deeper functionality and security.

Pricing overview:

Microsoft 365 Copilot: $360 per user per year.
Copilot Pro: $20 per user per month (for personal use).
Microsoft Copilot Studio: $200 per month for 25,000 messages.
Copilot for Sales: $50 per user per month (or $20 with a Microsoft 365 Copilot subscription).
GitHub Copilot: $10 per user per month or $100 per user per year.
Copilot for Security: Estimated at $2,920 monthly per security compute unit.
Power Apps Premium (includes Copilot): $20 per user per month.

Copilot is available for Mac users via Microsoft 365 and as a mobile app for iOS and Android. It does not support older, locally installed Office versions (2021/2019/2016 and earlier).

Benefits of Using Microsoft Copilot

Copilot’s primary benefit is enhanced productivity and efficiency. It automates repetitive tasks like email writing and document summarization, freeing users for higher-value work. It also sparks creativity by suggesting new ideas, formats, and content based on context.

Team Copilot (in development) will focus on collaboration, assisting with project management, scheduling, and compiling relevant files. During Teams meetings, it can take notes and analyze progress.

Copilot aids decision-making through data analytics, financial analysis, and project planning. Integrated with Power BI, it can visualize data from Microsoft 365, Windows, and cloud services, offering personalized responses based on user roles and permissions. Over time, it adapts to individual writing styles and preferences, tailoring content for different audiences.

Microsoft addresses copyright concerns with the Copilot Copyright Commitment, which protects customers under specific conditions.

Microsoft Copilot Security and Privacy

Commercial editions of Copilot provide data protection assurances not available in public LLM tools. Microsoft 365 Copilot uses prompts to pull information from both public LLMs and internal data the user can access, ensuring proprietary information remains secure. However, organizations must govern data permissions carefully, as Copilot can access any files available to the user.

For compliance, Copilot meets standards like the EU Data Boundary and GDPR. In September 2024, Microsoft replaced its original commercial data protection commitment with the Enterprise Data Protection (EDP) program, which includes:

Data security: Encryption for data in transit and at rest.
Extension of Microsoft policies: Copilot aligns with existing admin settings.
Protection from training on private files: User prompts in Microsoft 365 do not train public models.

How Is Microsoft Copilot Different from Other Generative AI Tools?

Copilot competes with various AI tools across markets. Its free version rivals ChatGPT, Dall-E, and Gemini, while specialized versions face competition from tools like Amazon CodeWhisperer (for GitHub Copilot) or Salesforce AI (for Copilot for Sales).

Copilot distinguishes itself through deep integration across Microsoft’s ecosystem, allowing consistent user experience and knowledge application. It runs on OpenAI’s GPT-4o and Dall-E 3, plus Microsoft’s proprietary Prometheus model, which focuses on efficiency, privacy, and relevance.

Diagram showing data flow between Microsoft 365 apps, the Microsoft Cloud, and the Copilot system to answer user queries.

The architecture of how information moves within the different Copilots of Microsoft 365.

What Are Copilot’s Conversation Styles?

Copilot offers three conversation styles:

Precise: Short, direct answers for quick queries.
Creative: Detailed, imaginative responses for brainstorming.
Balanced (default): Informative, concise, and neutral.

All styles can produce AI hallucinations, but the creative style carries higher risk. Users prioritizing accuracy should avoid it.

The History and Future of Copilot

Copilot launched as Bing Chat on February 7, 2023, evolving from Cortana. Microsoft rebranded it as Copilot in September 2023, initially focusing on Windows 11, Edge, and Bing before expanding.

Key updates include:

March 2024: Support for GPT-4 Turbo.
September 2024: Integration of GPT-4o and Dall-E 3, plus new features like Copilot Pages and agents.

Future updates will make Copilot more context-aware for tasks like teaching, shopping, travel planning, and career guidance.

However, the growing energy consumption of AI data centers poses sustainability challenges. Microsoft’s emissions have risen 29% since 2020, highlighting the need for organizations to consider environmental impact when adopting tools like Copilot.


FAQs About Microsoft Copilot

1. What is Microsoft Copilot?

It's an AI assistant built into Windows and Microsoft apps (like Word and Teams) that helps you write, summarize, create content, and automate tasks using simple conversations.


2. Is Copilot free?

Yes, there's a free version in Windows, Edge, and Bing. Paid versions (Copilot Pro and Microsoft 365 Copilot) offer more features and integration.


3. What's the difference between Copilot Pro and Microsoft 365 Copilot?

Copilot Pro ($20/month) is for individuals and offers priority AI access. Microsoft 365 Copilot ($30/month) is for businesses and works directly with your company's emails, documents, and data.


4. Is my data safe with Copilot?

In business plans, your company data is protected and not used to train public AI models. Always check your organization's settings.


5. How do I open Copilot in Windows?

Click the Copilot icon on the Windows taskbar (right side) or press **Windows Key + C**.


6. Can Copilot create images?

Yes, the free version and Copilot Pro can generate images from text descriptions using Image Creator (powered by DALL-E 3).


7. Does Copilot work with old versions of Office?

No. Microsoft 365 Copilot only works with subscription-based Microsoft 365 plans, not one-time purchases like Office 2021 or 2019.

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