To illustrate the difference, here are a few common workplace scenarios with how Microsoft 365 Copilot Chat (No-Cost) compares to Microsoft 365 Copilot (Paid):
| Feature | Microsoft 365 Copilot Chat (No-Cost) | Microsoft 365 Copilot (PAID) |
|---|---|---|
| Primary Use | Secure AI chat for work | Full AI assistant in Microsoft 365 apps |
| Where It Runs | Web-based chat experience; supports work account sign-in, but does not access tenant data unless files are uploaded | Web, Word, Excel, Outlook, Teams, etc. |
| Data Grounding | Web-grounded, no tenant data access | Microsoft Graph + file context |
| Security & Compliance | Enterprise data protection for prompts/responses | Enterprise-grade security and compliance |
| Microsoft 365 Integration | Chat only; no in-app authoring | Deep in-app assistance |
| Best For | Organizations trying AI chat | Organizations ready for full AI integration |
| License Version | Included with M365 plan | Paid add-on per user |
1. Name
Microsoft gave both Copilot versions nearly identical names, creating confusion. Let's define them both.
- Microsoft 365 Copilot is the paid version of Copilot. When you subscribe to M365 Copilot, you get Copilot embedded in your Microsoft 365 ecosystem, your data, and M365 applications.
- Microsoft 365 Copilot Chat is the no-cost version. You will find M365 Copilot Chat via URL, as a downloadable app, and in your M365 applications.
2. Data
What data can these Copilots access and use when communicating with them? Microsoft refers to this as “grounding”. “Grounding” is the process of providing Copilot with specific, relevant information to ensure its responses are accurate and tailored to your needs.
- Microsoft 365 Copilot (paid) is grounded within your organization’s Microsoft 365 tenant data. This includes your emails, chat messages, Teams meeting recordings, and documents stored in Teams, SharePoint, and OneDrive, and Microsoft-hosted OpenAI models optimized for Copilot. You can connect external organization data (i.e., CRM, ERP systems) to extend Copilot knowledge through the extensibility features of Copilot Agents and API’s. This allows organizations to leverage the power of Copilot with their data.
- Microsoft Copilot Chat (no cost) is grounded in web data and does not access your organization or personal information unless you upload a file into your prompt. This makes it a versatile tool for general inquiries and tasks that do not require access to your organizational data. However, you can include company information and files, and Microsoft will safeguard your data.
3. Security
Given that Copilot can utilize our information, how does Microsoft ensure its security?
- Microsoft 365 Copilot (paid) utilizes Microsoft’s comprehensive security, privacy, and compliance suite of products as the foundation for Copilot. Copilot respects and utilizes the organization’s current security settings and user permissions to safeguard your information. When Copilot is working to generate answers to your prompts, the information returned to you will only be that which you have been granted access to or authorized to use.
- Microsoft 365 Copilot Chat (no-cost) When signed in with a Findlay.edu account, Copilot Chat provides Enterprise Data Protection (EDP) for prompts and responses
4. Audit and Logging
Activity in Microsoft 365 Copilot is subject to standard Microsoft 365 audit logging and compliance controls.
5. Commitment to Safety
Both the paid and no-cost versions are developed with Microsoft’s commitment to developing AI systems that prioritize privacy and security. This commitment includes ensuring that AI systems are secure, respect user privacy, and comply with data protection requirements. Microsoft adheres to principles of transparency, user control, and accountability, aiming to build AI technologies that are dependable, fair, and inclusive.
Furthermore, Microsoft has a clear policy ensuring that customer data remains under the customer's control and is used solely to provide the intended service. This means that your data, or anyone logged into a Microsoft 365 subscription, is not used to train or improve Microsoft's AI models.
How do I know which Copilot I am using?
The name and appearance are similar, but you can tell you have the paid version if you can switch between "Work" and "Web".
Microsoft 365 Copilot (paid) allows you to toggle between Work and Web information.