How does Microsoft 365 Copilot pricing and licensing work? | TechTarget (2024)

Answer

Getting access to Copilot for Microsoft 365 may be a simple process or almost completely unfeasible at this time, depending on the organization that wants to deploy it.

Like many other Microsoft products, Copilot for Microsoft 365 has some prerequisites and payment structures that organizations must navigate.

Complicating things further is the variety of copilot technologies and integrations that Microsoft has released. Organizations need to know what copilots are available to purchase and which is right for them.

What types of Microsoft copilots are there?

Microsoft's copilot technologies are large language model-backed virtual assistants that can access user data and public content online to answer questions with natural language responses, but different copilot integrations serve different roles.

There are too many copilots to reasonably list here, but one version of Copilot is already live on Microsoft Edge, and it can help users navigate the web more efficiently while providing important context about content and websites. Microsoft's GitHub Copilot has been available long before the release of Copilot for Microsoft 365, and it helps programmers work more efficiently by providing autocomplete suggestions and natural language comments in a separate window based on the user's past work.

Other copilots include Microsoft Sales Copilot, which aims to improve efficiency in sales firms and departments, Microsoft Copilot Studio, which lets administrators create virtual assistant-driven automations and bots, and Microsoft Security Copilot, which brings AI automation to security operations.

Many other copilots integrate with Microsoft business technology, but none have the potential reach in terms of user base that Microsoft 365 Copilot does. Copilot for Microsoft 365 is a much broader version of the copilot technology, as it aims to improve efficiency across the entire Microsoft productivity suite of applications and services. This copilot will affect the most users while they work, offering the greatest potential for increased productivity. But before organizations fully commit to the improvements and use cases, they need to determine if deploying copilot is a realistic option from a licensing and price perspective.

These requirements and costs may change over time, but they are accurate as of February 2024.

What are the prerequisites for Copilot for Microsoft 365?

Because Copilot for Microsoft 365 only works as an add-on to an existing service, customers will need several prerequisites before purchasing this technology. To begin, customers need a valid Microsoft 365 E3 or E5 license. Subscribers to other variants of Microsoft 365 don't currently have public access to the productivity suite's copilot.

When Microsoft first made Copilot for Microsoft 365 generally available in November 2024, Microsoft had a 300-seat minimum in place. This is no longer the case, which clears the way for SMB adoption at an easier-to-accept price. There is also an option available that caters to individuals which is called Copilot Pro.

There are some additional smaller requirements that IT teams must keep in mind to ensure that a user base is ready for Copilot deployment. To access Copilot for Microsoft 365, end users need the following:

  • An active Microsoft Entra ID.
  • The "new Outlook," currently in preview.
  • Microsoft 365 Apps for enterprise.
  • WebSocket connections allowed on any endpoint.

How much does Copilot for Microsoft 365 cost?

The license fees are $30 per user, per month for Copilot for Microsoft 365 and $20 per user, per month for Copilot Pro. However, the total cost involves more than a single license fee.

At the time of Copilot's initial release, users needed active Microsoft 365 licenses -- either E3 or E5 -- which cost $36 and $57 per user, per month, respectively. However, users with Office 365 E3 and E5 licenses, which cost $23 and $38 per user, per month respectively, are eligible for Copilot access as well. Additionally, a Copilot for Microsoft 365 license requires an annual commitment.

Does Copilot for Microsoft 365 offer a free trial?

While other copilots from Microsoft offer free trials for administrators, Copilot for Microsoft 365 currently has no free trial program. Organizations will have to commit to an annual subscription to access this technology.

Editor's note: This article was updated in February 2024 to reflect changes in price since initial publication.

John Powers is senior site editor for TechTarget's Enterprise Desktop, Virtual Desktop and Mobile Computing. He graduated from the Philip Merrill College of Journalism at the University of Maryland.

Next Steps

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How does Microsoft 365 Copilot pricing and licensing work? | TechTarget (2024)

FAQs

How much does Microsoft 365 copilot cost? ›

How much does Copilot for Microsoft 365 cost? The license fees are $30 per user, per month for Copilot for Microsoft 365 and $20 per user, per month for Copilot Pro. However, the total cost involves more than a single license fee.

What license is required for Microsoft Copilot? ›

A product license for E3 or E5, or Office 365 E3 or E5, is required to buy Copilot for Microsoft 365. A subscription to one of the following sales solutions is required to use Copilot for Sales: Dynamics 365 Sales. Salesforce Sales Cloud.

Does Office 365 include Copilot? ›

Microsoft has integrated Copilot throughout its Office 365 suite of applications to enhance productivity and creativity. In order to utilize Microsoft Copilot's features, you must have Microsoft 365 Apps for Enterprise because previous versions of Office (2013, 2016, 2019 and 2021) aren't compatible.

What is the difference between Copilot and Copilot pro? ›

Copilot Pro is for general consumer home users, Copilot for 365 is for business users. If you already have the $360/yr license, you don't need to get the Copilot Pro. Here is an artcle to expand that further if it is of any interest to you: https://answers.microsoft.com/en-us/msoffice/fo...

Is Microsoft 365 copilot free or paid? ›

Add Copilot for Microsoft 365 to your existing Microsoft 365 enterprise subscription. [1] This is a subscription paid yearly, per user. [2] Copilot for Microsoft 365 may not be available for all markets and languages. To purchase, customers must have a qualifying plan for enterprise or business.

Is Microsoft Copilot included in an E3 license? ›

Copilot is an add-on license to Microsoft 365 E3, E5, A3, A5, Business Premium, and Business Standard, as well as Office 365 E3 and E5. It's not available for frontline workers with the M365 F3 license.

Why is Copilot so expensive? ›

Part of the reason why Microsoft 365 Copilot is priced highly is because of the investment Microsoft has been making in building out its AI-powered offerings. Microsoft has invested billions into its OpenAI partnership to get this all off the ground.

How do I activate Copilot in Microsoft 365? ›

Here are the steps: Sign in to the Microsoft 365 admin center and go to Billing > Licenses. Select Microsoft 365 Copilot. In the product details page, assign licenses to users and manage their access to Copilot and other apps and services.

Will Microsoft Copilot be available for everyone? ›

When will Microsoft Copilot for Microsoft 365 be available to users? Microsoft Copilot for Microsoft 365 is already generally available for enterprise customers since November 1, 2023. For educational staff, it is available from January 1, 2024, and for students aged 18 and above from May 15, 2024.

Can an individual buy Microsoft Copilot? ›

For individuals: To use Copilot Pro features in Microsoft 365 web apps, customers must purchase a Copilot Pro subscription and be signed into their Microsoft account. For business and enterprise: Customers must have a qualifying Microsoft 365 plan for business or enterprise to purchase.

Is Copilot a separate subscription? ›

If you have a Microsoft 365 Family subscription and have shared your subscription with other people, each will need to buy their own Copilot Pro subscription to use Copilot in the Microsoft 365 apps.

Does Microsoft 365 Copilot use GPT 4? ›

Both ChatGPT-4 and CoPilot using GPT-4 and support full functionality of GPT-4 but they have different trained model.

What are the disadvantages of Copilot? ›

Copilot requires a stable internet connection to function properly. This dependency can be a drawback for users who need to work offline or in areas with unreliable internet access. Competing AI tools that offer offline functionality may be more suitable for such environments.

How much does Microsoft Copilot cost? ›

So, is Microsoft Copilot free for business users? No, but you do get a lot more functionality. The Copilot for Microsoft 365 plan costs $30 per user per month, or you can purchase the plan for $360 per year. You'll also still need a qualifying Microsoft 365 plan.

Is Microsoft Copilot worth the money? ›

Yes, we think so. Microsoft Copilot for Microsoft 365 can be a productivity game-changer for your organization, and CIOs who refuse to start exploring safe ways to deploy AI will not be popular amongst boards and CEOs when these tools start truly living up to their hype.

Is Copilot 365 already available? ›

When will Microsoft Copilot for Microsoft 365 be available to users? Microsoft Copilot for Microsoft 365 is already generally available for enterprise customers since November 1, 2023.

How do I get access to 365 Copilot? ›

Here are the steps:
  1. Sign in to the Microsoft 365 admin center and go to Billing > Licenses.
  2. Select Microsoft 365 Copilot.
  3. In the product details page, assign licenses to users and manage their access to Copilot and other apps and services.
  4. To check if a user has been added, go to Users and then Active Users.
2 days ago

Is a Copilot subscription worth it? ›

Yes, we think so. Microsoft Copilot for Microsoft 365 can be a productivity game-changer for your organization, and CIOs who refuse to start exploring safe ways to deploy AI will not be popular amongst boards and CEOs when these tools start truly living up to their hype.

How much does the Copilot app cost? ›

Pricing. Copilot is a subscription-based service, with plans starting at $13 per month or $95 per year when paid annually. While there's no free version of the app, Copilot does not use ads or hidden fees. New users can try Copilot risk-free with a one-month free trial.

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