Microsoft 365 Copilot Chat: AI Productivity Without the Subscription

TL;DR – What You Need to Know in 30 Seconds

• Microsoft 365 Copilot Chat introduces free AI-powered chat with GPT-4 and pay-as-you-go AI agents for automating business tasks.
• Key features: Market research, document summarisation, real-time collaboration, AI-generated images, and file uploads.
• Pay-as-you-go AI agents automate repetitive tasks, billed at $0.01 per message or $200 for 25,000 messages/month.
• Enterprise-grade security & IT controls ensure data protection, agent governance, and compliance with company policies.
• Difference from Microsoft 365 Copilot: Copilot Chat offers a free entry point, while Microsoft 365 Copilot provides deep integration and personalised AI assistance for $30 per user/month.

Microsoft 365 Copilot Chat: Free AI Chat with Flexible AI Agents

Microsoft has expanded its AI-powered productivity offerings with Microsoft 365 Copilot Chat, an enhanced chat solution powered by GPT-4. Unlike the premium Microsoft 365 Copilot, which requires a monthly subscription, Copilot Chat offers a free chat experience with optional pay-as-you-go AI agents. This model makes AI-powered automation more accessible to businesses while maintaining enterprise-grade security and IT control.

What’s New in Microsoft 365 Copilot Chat?

Copilot Chat provides a secure, AI-powered assistant that can handle everything from market research and strategy development to content creation and file analysis. Key features include:

✅ AI-Powered Chat (Free)

• Secure chat powered by GPT-4 for research, strategy documents, and meeting preparation.
• File uploads allow users to summarise reports, analyse Excel spreadsheets, and improve presentations.
• Copilot Pages enables real-time collaboration between humans and AI.
• AI-generated images for campaigns, product launches, and social media posts.

✅ Pay-As-You-Go AI Agents

• Task automation: Agents can be created via natural language prompts to handle repetitive tasks.
• Flexible pricing: $0.01 per message or $200 for 25,000 messages/month via Microsoft Azure.
• Enterprise IT controls: IT admins manage agent deployment and permissions via Microsoft Copilot Studio.

✅ IT & Data Protection Features

• Enterprise Data Protection (EDP): Ensures uploaded content isn’t used to train AI models.
• Copilot Control System: Governs agent access, usage, and security policies.
• Access control & monitoring: IT teams can track agent interactions and adjust permissions.

Copilot Chat vs. Microsoft 365 Copilot: What’s the Difference?

While both solutions leverage AI, Copilot Chat offers an on-demand AI assistant, whereas Microsoft 365 Copilot provides a deeply integrated AI experience. Here’s how they compare:

How Businesses Can Benefit from Copilot Chat

💡 Lower Cost, Higher Flexibility:
Companies can use free AI chat and only pay for AI agents when needed—ideal for businesses that don’t require a full Microsoft 365 Copilot subscription.

💡 Task Automation for Teams:
Teams can automate manual, repetitive workflows with AI agents, optimising efficiency without major IT infrastructure changes.

💡 Enterprise-Grade Security & Control:
IT admins can manage AI agent permissions, ensuring compliance and governance over data access and automation tools.

How to Get Started with Copilot Chat

1️⃣ Enable Free AI Chat: Available by default for Microsoft 365 commercial customers via Microsoft365.com/copilot.
2️⃣ Use AI Agents (Optional):

• Free agents (based on public data and uploaded files) are enabled via Microsoft 365 Admin Center.
• Paid agents require a Copilot Studio subscription via the Power Platform Admin Center (PPAC).
  3️⃣ Choose Your Pricing Model:
• Pay-as-you-go: $0.01 per message (billed via Azure).
• Capacity packs: $200 for 25,000 messages/month.
  4️⃣ Manage and Monitor Agents: IT admins can monitor usage, trends, and performance through Microsoft Copilot Studio.

Final Thoughts: A More Flexible AI Assistant for Businesses

Microsoft 365 Copilot Chat represents a shift towards AI accessibility and flexibility, offering both free AI-powered chat and on-demand automation. While Microsoft 365 Copilot remains the go-to solution for businesses deeply embedded in the Microsoft ecosystem, Copilot Chat provides a cost-effective alternative for those seeking AI-powered efficiency without a full subscription commitment.

For businesses looking to streamline workflows, automate tasks, and leverage AI without long-term contracts, Copilot Chat’s pay-as-you-go agents offer a compelling alternative to traditional AI subscriptions.

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• Try Microsoft Copilot Chat now by tapping here.