The Microsoft 365 Blog

Exploring Microsoft 365 Copilot Chat: Your New AI Assistant Explained

May 02, 2025

You’ve probably heard of AI - but did you know that Copilot is Microsoft’s AI product? Maybe you did, maybe you didn’t. Or perhaps you’re one of those business owners still unsure about how AI can truly transform your business? Well, welcome to my video series all about Copilot. By the end of this post, I hope you’ll understand exactly how Copilot can make your business more efficient and profitable.

But before we start, let me quickly introduce myself. My name is Jonathan Edwards, also known as the Bearded 365 Guy. I help businesses worldwide with their Microsoft 365 needs, and you can find more information at b365guy.com. Now, let’s dive into the world of Copilot.


The Rise of AI in Business

AI is taking over. Whether we like it or not, AI is here to stay. The recent Microsoft Ignite conference in Chicago was all about it. But while tech enthusiasts are hyping up AI, business owners I talk to are still unsure about how AI can actually benefit their businesses. That’s why I’ve decided to make this video series. Microsoft’s AI technology is called Copilot, and it’s a game-changer. But here’s the kicker - Copilot isn’t just one product; it’s a whole suite of tools.

We have Copilot Chat, Copilot Agents, Copilot Pages, Copilot in Teams, Outlook, Word, Excel, PowerPoint, and more. So where do we start? Over the next few weeks, I’ll be releasing videos that break down each of these individual Copilot features. But today, let’s focus on Copilot Chat.


What is Copilot Chat?

Think of Copilot Chat as your AI assistant. It’s similar to using something like ChatGPT, but within the Microsoft 365 ecosystem. You can use Copilot Chat to find inspiration, whether that’s for a blog post or to help plan a trip. The possibilities are endless.

Now, let’s dive into the details. But before we do, let’s quickly talk about pricing.


Copilot Chat Licensing

When it comes to Copilot, Microsoft has two product offerings. There’s a free version, called Microsoft 365 Copilot Chat, and a paid version, Microsoft 365 Copilot, which costs £24.70 per user, per month in the UK. As I go through this post, I’ll highlight what’s included in both the free and paid licenses so you can understand the differences.


How Does Copilot Chat Work?

With Copilot Chat, you get an AI assistant that pulls information from the web. But that’s just for the free version. The paid version gets access to not only the web but also your Microsoft 365 data, including OneDrive, SharePoint, Teams, and Outlook. So, when you ask Copilot Chat a question, the paid version can pull from all that data to give you a far more tailored response.


A Quick Demo: Copilot Chat in Action

Now, let’s see how Copilot Chat works in action. First, you’ll log in to portal.office.com. Once there, you’ll notice a new Copilot option on the left-hand side. If you can’t see it, try clicking on the app launcher and selecting ‘More Apps.’ From there, you’ll be able to pin Copilot to your dashboard.

Once in Copilot Chat, you’ll have access to suggested prompts. For example, you can ask Copilot for tips on writing a great LinkedIn post, and it will search the web and provide detailed advice.

Free vs Paid Version

The free version of Copilot Chat is grounded in the web, which means it only pulls data from the public internet. When you ask it to find something in your Microsoft 365 data, it won’t be able to help. For example, if you ask the free version to summarize your last 10 emails, it can’t access your inbox because it doesn’t have access to your Microsoft 365 data.

On the other hand, the paid version of Copilot Chat can access all your Microsoft 365 data and will happily summarize your last 10 emails or even search for a file in OneDrive.


Real-World Use of Copilot Chat

I wanted to show you how powerful Copilot Chat can be, so I tested it by asking it to find a file in my OneDrive. Sure enough, the paid version found the file, even though the free version couldn’t.

This capability to integrate directly with your Microsoft 365 data is what makes the paid version so powerful. Whether you need a quick summary of your emails or to find a document in OneDrive, Copilot Chat is there to help.


Copilot Pages: A New Feature

Another cool feature of Copilot is called Copilot Pages. This feature is available in both the free and paid versions and links your Copilot to Microsoft Loop. If you’re unfamiliar with Microsoft Loop, it’s a collaborative tool that lets teams work on shared projects in real-time.

I decided to test Copilot Pages by asking it to create a project charter for a World War II history trip to Berlin. Copilot did just that, generating a detailed project plan that included popular WWII sites in Berlin, a project schedule, and owners for each task.

This feature can be incredibly useful in business, where collaboration and project management are key.


Wrapping Up

So, there you have it - Microsoft 365 Copilot Chat explained. Whether you’re using the free or paid version, Copilot Chat can be an invaluable tool for businesses looking to boost productivity. The real power comes when you unlock the full potential of the paid version, which integrates seamlessly with Microsoft 365.

Stay tuned for more insights on the other Copilot features, and if you have any questions, don’t hesitate to reach out!