First launched in November 2023, Microsoft 365 Copilot brings a range of generative AI (genAI) features to Microsoft Office productivity apps, such as Word, Outlook, Teams, and Excel. With capabilities ranging from quick meeting summaries to in-depth data analysis, it’s available via a paid add-on license for Microsoft 365 enterprise and small-business customers.
Initially hampered by underwhelming capabilities and a hefty price tag for businesses of all sizes, M365 Copilot has slowly gained traction in business as its abilities have increased and the integrations between Copilot and various M365 apps and services have improved. With numerous feature rollouts over the past three years, Microsoft has gradually repositioned M365 Copilot from a simple chatbot to a collection of autonomous agents that can carry out tasks across the M365 ecosystem.
The company has also goosed adoption by introducing a more affordable pricing tier for small businesses and (temporarily, as it turns out) allowing commercial users with a standard M365 license to use Copilot in the Office apps, even without the add-on M365 Copilot license.
Microsoft 365 Copilot pricing: 2026 tiers
TierMonthly cost (paid annually)AvailabilityM365 Copilot$30 / userFor organizations with more than 300 seats; required for in-app Copilot integration in organizations with more than 2,000 seatsM365 Copilot Business$21 / userFor organizations with 10 – 300 seatsAgent 365 (add-on management layer)$15 / userAvailable as standalone subscription or included in the new M365 E7 Frontier Suite
