Microsoft is reintroducing its free AI assistant for businesses under the name Microsoft 365 Copilot Chat, now featuring AI agents. This move is part of Microsoft’s strategy to encourage AI adoption in workplaces, ultimately enticing businesses to subscribe to the full Microsoft 365 Copilot for $30 per month.
Jared Spataro, Microsoft’s Chief Marketing Officer for AI, describes Copilot Chat as a “free and secure AI chat powered by GPT,” emphasizing its ability to process uploaded files. While he avoids naming competitors, it is evident Microsoft is targeting OpenAI’s ChatGPT and Google’s Gemini.
Previously known as Bing Chat Enterprise, Microsoft 365 Copilot Chat has now integrated AI agents, a feature that was once exclusive to the paid version. These agents function like digital assistants, managing emails and automating workflows. Businesses can create and customize agents using Copilot Studio, allowing them to utilize web-based data or internal company data from Microsoft Graph. The pricing for AI agent usage is managed through the Copilot Studio meter in Azure or a pay-as-you-go system.
To address concerns about unpredictable costs, Microsoft offers different payment models: businesses can either pay-as-they-go or purchase consumption packs that expire once fully used. The pricing structure is based on message usage: standard responses count as one message, generative AI responses as two, and data-driven responses via Microsoft Graph as 30 messages. Each message is equivalent to $0.01, meaning more complex queries could cost up to $0.30 per interaction.
The core chat experience remains largely unchanged, running on GPT-4o. Users can upload files for summarization or data analysis, though full integration within Word and Excel requires the premium Microsoft 365 Copilot subscription. While Microsoft has no plans to offer a free trial of the paid version, Copilot Chat is strategically positioned to drive businesses toward full adoption.
Despite multiple rebrands, Copilot Chat has seen strong usage among businesses reliant on Microsoft’s ecosystem. Spataro notes that once users experience its benefits, they recognize its workplace value. As Microsoft continues to push for widespread AI adoption, it hopes Copilot Chat will convert more businesses into paid subscribers.
