Microsoft has just introduced Copilot Chat, a fresh feature that enhances their existing free chat services for Microsoft 365 commercial clients. This new offering brings a host of capabilities, such as using OpenAI’s GPT-4o model for secure and seamless AI interactions. Additionally, users can benefit from Agents that take over repetitive tasks, along with IT controls that ensure enterprise data protection and management of agents.
Now, it’s important to mention that with Microsoft’s ever-evolving Copilot branding, this release is almost like a revamped version of the company’s previous free Copilot service for businesses. It seems like a strategic move by Microsoft, likely aimed at encouraging more users to engage with its AI tools. Previously, creating AI agents through Microsoft’s 365 Copilot experience was a privilege costing $30 a month.
Chatting with The Verge, Jared Spataro, Microsoft’s CMO of AI at work, shared some insights about the Copilot Chat. He noted, “It’s a free, secure AI chat powered by GPT. You can upload files, making it quite competitive; in fact, we believe it surpasses the competition.”
Mary Jo Foley, from Directions On Microsoft, pointed out that the new service is accessible to users signed in with Entra ID accounts, much like the approach with Copilot Chat’s predecessor, Bing Chat Enterprise. Microsoft updated Bing Chat Enterprise to feature Enterprise Data Protection (EDP), ensuring prompts and responses stay within the Microsoft 365 service boundary.
Those with Entra IDs can freely use Microsoft 365 Copilot Chat to create AI agents. However, they’ll need to activate a Pay-As-You-Go license and use Copilot Studio metering on Azure to build agents.
### But Copilot Chat’s pricing isn’t that simple
Let’s delve into this. The billing structure hinges on messages, which Microsoft measures by pricing and consumption rates. A simple response without fancy language model manipulation counts as a single message. If advanced AI smartness gets involved, that’s considered two messages.
For something meatier—say, responses tapping into advanced models or Microsoft Graph—that counts for 30 messages. Jared Spataro explained, “So every message equates to a penny, meaning you’re looking at 1 cent, 2 cents, and 30 cents.”
Continuing, Spataro elaborated on the billing system: “People often ask me, ‘Am I handing you a blank check?’ There are various ways to manage costs. One is the pay-as-you-go approach—think of it as an open tab. On the flip side, there’re consumption packs; once they run out, that’s it.”
While Microsoft touts Copilot AI use among about 70% of Fortune 500 employees, insiders have expressed concerns over what some see as a rush to market. Nonetheless, Spataro notes that Copilot Chat is already gaining traction within organizations using Microsoft’s services: “Despite the complex naming journey, we’ve amassed a considerable user base. Users find the tool increasingly valuable once they get accustomed to it.”
Even with high-level attention from CEO Satya Nadella, privacy and security anxieties linger, as mishaps in these areas have recently plagued Microsoft. One employee noted how the tool works exceptionally well in sharing unintended or private data, such as salary information.
READ MORE: [Link to Salesforce and Microsoft OpenAI Excel article]
Questions remain about how Microsoft’s latest Copilot Chat entry and pricing model will resonate with users, and whether this move will lure more business into their AI sector. Business Insider previously disclosed that Microsoft leans on external vendors for AI-enhanced apps like Microsoft 365 Copilot, which prompted a top executive to dismiss many Copilot tools as mere gimmicks.
