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Pick up to four. The comparison starts by saying whether they compete, work together or sit in different layers, then lines up their verified facts. It never names a universal winner.
How they relate
Microsoft 365 Copilot and Microsoft Copilot Chat work together.
From the published profiles: same product family.
Side by side
| Fact | Microsoft 365 Copilot | Microsoft Copilot Chat |
|---|---|---|
| Type | Add-on | Cloud application |
| Layers | Copilot & business apps, AI models & platform, Data & analytics | Copilot & business apps, AI models & platform |
| What it is | Microsoft 365 Copilot, now named Microsoft Copilot on Microsoft's licensing pages, is the paid AI assistant for work in Microsoft 365. It grounds answers in a user's emails, files, meetings and chats through Microsoft Graph and Work IQ, and works inside Word, Excel, PowerPoint, Outlook, Teams and the Copilot app. | Microsoft Copilot Chat, formerly Microsoft 365 Copilot Chat, is the secure AI chat included with eligible Microsoft 365 licenses. It is grounded mainly in the web, works on files users provide, runs agents, and carries enterprise data protection when people sign in with a work account. |
| Who needs it | Organizations already on an eligible Microsoft 365 or Office 365 plan whose staff spend much of their day in mail, meetings and documents and need answers that combine those sources. Microsoft sells Copilot as an add-on for commercial, US Government and education plans, as Microsoft Copilot Business for organizations with up to 300 users, and inside Microsoft 365 E7. IT and compliance teams are involved because Copilot inherits existing permissions and labels. | Organizations that want every eligible employee to have an approved AI chat for work, instead of consumer tools, without buying a Copilot seat for everyone. It suits staff who mostly need web research, drafting and file analysis. It is also the starting point before deciding which users need the paid Microsoft 365 Copilot license. |
| What it is not | It is not the same as Microsoft Copilot Chat: Copilot Chat (Basic) comes with eligible Microsoft 365 licenses at no extra charge but is mainly web grounded and cannot reach Microsoft Graph or Work IQ. It is not the consumer Copilot app for personal Microsoft accounts. It does not grant access to anything a user cannot already open; it surfaces whatever permissions allow. It is also separate from GitHub Copilot, Microsoft Security Copilot and Copilot Studio, which Microsoft licenses independently. | It is not Microsoft 365 Copilot (now Microsoft Copilot): Copilot Chat has no Microsoft Graph, Work IQ or semantic indexing grounding across Microsoft 365, no priority access, and limited agent experiences. Users with Copilot Chat (Basic) do not get Copilot chat inside Word, Excel, PowerPoint and OneNote. It is not the consumer Copilot for personal Microsoft accounts, which has separate chats and protections. Agents that use organizational data are not free: Microsoft includes only declarative agents grounded in instructions and public websites, and other agents are pay-as-you-go. |
| Prerequisites |
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| Runs on | Microsoft 365 cloud service (SaaS), Commercial tenants, US Government clouds (GCC, GCC High, DoD) as an add-on, with feature differences, Education tenants | Microsoft 365 cloud service (SaaS), Web, desktop and mobile apps, Microsoft Edge sidebar, Outlook and Teams, US Government clouds with feature differences (web grounding off by default in some) |
| Availability and licensing | Generally available. Microsoft Copilot is sold with Microsoft 365 E7 or as an add-on for eligible commercial, US Government and education plans; Microsoft Copilot Business is an annual add-on for up to 300 users on Business plans. Prices checked 26 Oct 2026 on Microsoft US pages: enterprise $30.00 per user per month, paid yearly; Copilot Business add-on $21.00 list, shown at $18.00 per user per month (first year, annual, existing customers) under an offer running 1 Jul to 31 Dec 2026. The unified Microsoft Copilot app began broad rollout to commercial customers in September 2026. | Generally available and included with eligible Microsoft 365 licenses at no extra cost; no Microsoft 365 Copilot license is required (checked 26 Oct 2026). Agents that use organizational data are billed pay-as-you-go. Microsoft renamed Microsoft 365 Copilot Chat to Microsoft Copilot Chat, and some licenses and screens still show the old name during the transition. Available to students aged 13 and older. Feature availability differs in GCC, GCC High and DoD. |
| When something simpler is enough | If staff mainly need web research, drafting and analysis of files they upload, Microsoft Copilot Chat (Basic) is included with eligible Microsoft 365 licenses and may be enough; Copilot Chat in Outlook also covers inbox, calendar and meeting questions without the add-on. If only a few roles need deep grounding, license those users rather than everyone. If the goal is one narrow process, a single agent built in Copilot Studio and paid by usage can cost less than seats for a whole department. | If your organization does not want AI chat at all, Microsoft documents how to unpin Copilot Chat, block the Copilot app through Integrated Apps and remove it from Teams. If staff need answers that combine their mail, meetings and documents across Microsoft 365, Copilot Chat will feel limited and Microsoft 365 Copilot is the documented upgrade. For a single narrow task over company data, one pay-as-you-go agent may be enough rather than licensing everyone. |
| Last reviewed | 26 Oct 2026 | 26 Oct 2026 |
| Official resources | Product page (opens in a new tab)Documentation (opens in a new tab) | Product page (opens in a new tab)Documentation (opens in a new tab) |
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