Microsoft Copilot: What You Need to Know

In this post: What is Microsoft Copilot? · What it actually does per app · When would you actually use this? · Licensing: what it actually costs · Before you roll it out · References

What is Microsoft Copilot?

Microsoft Copilot is an AI assistant built into Word, Excel, PowerPoint, Outlook, and Teams, layered on Microsoft Graph so it can pull context from your actual mail, files, and calendar rather than just generic knowledge. It drafts, summarizes, and suggests inside the tools you’re already using instead of a separate chat window you have to copy-paste into. The underlying model isn’t fixed to one vendor anymore either — Microsoft has moved toward model choice, with OpenAI’s GPT models as the default and Anthropic’s Claude models available as a selectable option in scenarios like Agent Mode in Excel, so “which model is actually answering” depends on what’s been configured, not a single hardcoded engine.

What it actually does per app

Word: drafts, edits, and summarizes documents; rewrites for tone and readability.
Excel: analyzes data, writes formulas from a plain-language description, and builds visualizations.
PowerPoint: generates a first-pass deck, including layout suggestions and speaker notes.
Outlook: summarizes long threads, drafts replies, and prioritizes what actually needs attention.
Teams: transcribes and summarizes meetings, and surfaces action items afterward.
Power Automate: suggests flow steps from a plain-language description of what you want automated.

Copilot inherits the requesting user’s existing permissions — it won’t surface anything they couldn’t already see.

When would you actually use this?

You’re staring at a 40-message Outlook thread and need the actual decision, not the whole history — Copilot’s summary gets you there in seconds.
You need a first-draft PowerPoint deck from a Word doc or a set of bullet points — it won’t be final, but it beats a blank slide.
You have an Excel sheet and know what you want to know from it, but not the formula for it — describe it in plain language instead of looking up syntax.
You just came out of a Teams meeting and need the action items captured before everyone forgets what was agreed.

Licensing: what it actually costs

This is the number that derails a lot of rollout plans, so it’s worth stating plainly: Copilot is an add-on, not a standalone product, and it’s priced separately from whatever Microsoft 365 base license each user already has. As of mid-2026, the standalone add-on runs around $30/user/month for standard enterprise agreements (with a lower rate for organizations under 300 seats), and Microsoft now also sells it bundled directly into Business Standard and Business Premium SKUs at a blended monthly rate. Either way, budget for the combined cost of base license plus Copilot add-on, not the add-on price in isolation — vendors and calculators quoting “$30/user” without the base license attached are quoting an incomplete number.

Before you roll it out

Needs a Microsoft 365 Copilot license on top of your existing M365 subscription — factor that into any rollout plan.
Review AI-generated content before it ships — Copilot can produce plausible-sounding but wrong output, especially in Excel formulas and data summaries.
Set governance around what Copilot can access — it inherits the requesting user’s existing permissions, so it won’t surface anything they couldn’t already see, but audit your permission model anyway before rollout.
Give people actual prompts to start with — adoption is mostly a training problem, not a capability problem.

References

Microsoft Copilot Official Page
Copilot in Power Automate
See also: ChatGPT vs. GitHub Copilot: Comprehensive Comparison if you’re weighing Copilot against other AI assistants.

Hope this helps. Let me know in the comments if you run into issues.