You’ve heard about Copilot. You’ve read about what it can do. And now, you might be ready to take the next step and try it out for yourself. The problem is that there isn’t just one version of Copilot.
Microsoft offers several different licensing options, all with slightly different capabilities, pricing structures and use cases. Choosing the right one is crucial, because the licence you select will ultimately determine what your users can actually do with the technology… and what they can’t.
The good news is that Copilot licensing is much simpler than it first appears, and at its core it all boils down to three primary options. Here’s an overview of the licenses, explained without the jargon:
1. Copilot Chat
This is the version that most Microsoft users already have access to. If your users have a Microsoft account, there’s a pretty good chance Copilot Chat is already available to them. It works much like any other large language model (LLM) in that users can ask questions, generate content or tweak existing documents, summarise information, and carry out research. However, it’s very much a standalone tool. It doesn’t integrate directly into applications such as Word, Excel, PowerPoint or OneNote, which limits how deeply it can become embedded within day-to-day workflows.
2. Microsoft 365 Copilot
This is the version most organisations are referring to when they talk about “getting Copilot”. It builds upon the basic LLM chat experience by bringing more advanced AI capabilities like file upload, image generation, voice functionality, enhanced reasoning capabilities, and access to automation agents. Plus, it’s built directly into Microsoft applications, which is a huge advantage. For many organisations, this level of functionality is more than enough. But there is a slight downside, in that the highest-level capabilities aren’t accessible, and service availability can vary depending on demand and capacity.
3. Microsoft 365 Copilot Premium
This is a separate add-on that you’ll need to pay for on top of your existing Microsoft licence, making it an additional investment. However, you’re not paying extra for nothing; premium users receive priority access to Copilot capabilities. This helps deliver more consistent performance during busy periods, while also unlocking a range of additional features. These include advanced reasoning agents, enhanced Teams meeting summaries and recaps, additional search capabilities, and better security, privacy, and compliance controls. There’s also Copilot access to emails, files, chats and contacts.
What’s best?
For most businesses, Copilot Chat on its own is unlikely to deliver widespread changes to productivity or efficiency. Its biggest limitation is the lack of integration with the Microsoft applications employees use every day, because embedding AI directly into existing workflows is arguably where Copilot delivers its greatest value. But beyond that, there’s no definitive answer regarding the others.
For some organisations, application integration alone delivers a strong return. For others, the advanced capabilities and priority access mean that moving further up the licensing ladder is justified.
Here at PSTG, we work with organisations to understand their existing Microsoft environment, budget, and business goals. We identify which licensing route makes the most sense, and build an implementation and adoption plan that ensures users can get real value from the investment.
Get in touch to find out more.