AI Agent & Copilot Podcast: Microsoft 365 Copilot Chat Explained

In this episode of the AI Agent & Copilot Podcast, Shawn Dorward, Vice President, sa.global, UG Expert, explains Microsoft 365 Copilot Chat, which was released in January 2025.

This episode is sponsored by the AI Agent & Copilot Summit NA, taking place March 17-19, 2025 in San Diego, California.

Key Takeaways

• Overview: Microsoft 365 Copilot Chat is a new, free functionality that integrates with your Windows laptop and some Microsoft Office applications. It is distinct from the existing Microsoft 365 Copilot, which costs $30 per user, per month and enhances applications like Outlook, Excel, PowerPoint, Word, and Teams.
• Data source: The free version of Microsoft 365 Copilot Chat only uses web data for training and does not access work or tenant data. However, users can upload files from SharePoint or OneDrive to use as part of the knowledge base in their prompts.
• Reduced learning curve: Microsoft 365 Copilot Chat is impressive, notes Shawn, because it remains free while using GPT-4o as its engine and maintaining enterprise-level security. Additionally, it offers prompt reactions grounded on web data or uploaded files, image generation, and a collaboration tool called Pages, making it accessible and reducing the learning curve for users.
• Embedded agents: As explained, M365 Copilot Chat does not connect to work or tenant data, which may be a limitation for some organizations. However, it allows the use of out-of-the-box and custom agents, with the option to access work data through a pay-as-you-go model at a lower cost per message compared to other AI competitors.
• Document management: Microsoft 365 Copilot Chat includes an image generator and a feature called Pages, which allows team collaboration on documents similar to saving files to SharePoint. Since the free version doesn’t connect to tenant data, Pages provides an alternative for collaborative document management.
• Free functionalities: Microsoft 365 Copilot Chat offers free functionalities, with the option to use pay-as-you-go for grounding on web or work data and creating autonomous agents.
• Necessary permissions: To use Microsoft 365 Copilot Chat, your IT team must enable and manage it through the Copilot Control System, which handles Enterprise Data Protection and agent management. This system allows IT to control user permissions and the creation of metered agents.
• Final thoughts: In closing, Shawn explains how M365 Copilot Chat breaks down barriers to AI adoption by addressing cost and security concerns, making it more accessible and affordable.

Stream the audio version of this episode:

AI Agent & Copilot Summit NA is an AI-first event to define the opportunities, impact, and outcomes possible with Microsoft Copilot for mid-market & enterprise companies. Register now to attend AI Agent & Copilot Summit in San Diego, CA from March 17-19, 2025.