Microsoft Copilot: Features, Pricing, Models & Alternatives (2026)
Microsoft Copilot is Microsoft's AI assistant, free for consumers and offered as a paid Microsoft 365 add-on that embeds AI into Word, Excel, and Outlook.
Last researched: September 26, 2026. Consumer plan names and business add-on pricing have both changed during 2026 — verify current figures at microsoft.com/microsoft-365/copilot/pricing. Microsoft Copilot is Microsoft's AI assistant brand, spanning a free consumer chat product and a paid Microsoft 365 Copilot tier embedded inside Word, Excel, PowerPoint, Outlook, and Teams.
What Is Microsoft Copilot?
Microsoft Copilot is Microsoft's AI assistant brand, comprising a free consumer chat product at copilot.microsoft.com that is also built into Windows 11, and a separately priced Microsoft 365 Copilot add-on that embeds AI assistance directly inside Microsoft 365 apps for business and enterprise customers.
Key Capabilities
- Free consumer chat with an automatic "Smart" mode that routes between quick and deeper-reasoning responses
- "Smart Plus" mode offering a more capable reasoning variant for harder tasks
- In-app assistance embedded directly inside Word, Excel, PowerPoint, Outlook, and Teams (Microsoft 365 Copilot tier)
- Windows OS-level integration, including a dedicated Copilot key on modern Windows keyboards
- Copilot Studio for building and deploying custom enterprise agents grounded in company data
- Image generation via Designer integration inside Copilot Chat
Main Features
| Feature | Details |
|---|---|
| Copilot Chat | Free web/Windows/Mac/iOS/Android chat assistant with automatic model routing between "Smart" and "Smart Plus" modes |
| Microsoft 365 Copilot | Paid add-on embedding AI drafting, analysis, and summarization directly into Word, Excel, PowerPoint, Outlook, and Teams |
| Windows integration | System-level Copilot access via a dedicated keyboard key and taskbar entry on Windows 11 |
| Copilot Studio | Low-code platform for building custom business agents on top of Copilot |
| Researcher/Analyst agents | Multi-step reasoning agents bundled into Microsoft 365 Copilot for research and data-analysis tasks |
| Image generation | Designer-powered image creation inside Copilot Chat |
| Enterprise data grounding | Microsoft 365 Copilot can ground responses in a tenant's own SharePoint/OneDrive/Outlook content via Microsoft Graph |
Use Cases
- Drafting and summarizing documents, emails, and presentations inside Microsoft 365 apps
- Meeting summarization and action-item extraction in Teams
- General-purpose free chat assistance on Windows, web, and mobile
- Custom internal business agents built via Copilot Studio
- Spreadsheet formula help and data analysis in Excel
Supported Models / Technologies
Copilot's free consumer chat currently runs primarily on OpenAI's GPT-5 model family, with a "Smart" mode that auto-selects response depth, and a "Smart Plus" mode running GPT-5.2 rolled out from January 2026 for harder reasoning tasks. Microsoft 365 Copilot for business draws on OpenAI models served through Azure OpenAI Service; the exact model version used for a specific Microsoft 365 Copilot feature (for example, Excel vs. Teams) is not uniformly publicly disclosed and can vary by update wave, so specific model attributions for individual enterprise features could not be verified as of this writing.
Platforms
Web (copilot.microsoft.com), built into Windows 11 (taskbar and dedicated keyboard key), native macOS app, iOS app, Android app, Microsoft Edge browser integration, and Microsoft 365 desktop/web apps (Word, Excel, PowerPoint, Outlook, Teams). No native Linux desktop application is offered.
Integrations
Microsoft 365 apps (Word, Excel, PowerPoint, Outlook, Teams, OneNote), SharePoint and OneDrive (via Microsoft Graph grounding), Dynamics 365, the Power Platform (Power Automate, Power Apps, Power BI), Windows 11 system integration, and Copilot Studio for connecting custom or third-party data sources and actions. GitHub Copilot is a related but separately branded and separately priced product for in-IDE code completion.
Pricing
| Plan | Price | Notes |
|---|---|---|
| Copilot Chat (free) | $0 | Consumer chat on web/Windows/Mac/iOS/Android with Smart/Smart Plus mode routing |
| Microsoft 365 Premium (consumer) | ~$19.99/mo | Replaced the retired consumer Copilot Pro plan; bundles Copilot features with Microsoft 365 personal apps — verify current figure at microsoft.com |
| Microsoft 365 Copilot Business (add-on) | $18/user/mo annual promo (list $21), or $25.20/user/mo monthly | For organizations up to 300 seats; requires an eligible Microsoft 365 Business plan |
| Business Standard + Copilot Business (bundle) | $23.50/user/mo annual | Combines the base Business Standard license with the Copilot add-on |
| Business Premium + Copilot Business (bundle) | $32/user/mo annual, or $38.40/user/mo monthly | Higher-tier bundle with additional security/device management features |
| Microsoft 365 Copilot (Enterprise add-on) | $30/user/mo | Add-on for E3/E5 and other enterprise agreements, held at this price since launch |
Advantages
- Free tier is genuinely capable and reaches users automatically through Windows 11 without separate signup friction
- Deepest available integration with Microsoft 365 apps for organizations already on Word, Excel, Outlook, and Teams
- Copilot Studio provides a low-code path to custom internal agents grounded in company data
Limitations
- No native Linux desktop application
- Business and Enterprise pricing is an add-on layered on top of a qualifying Microsoft 365 base license, so the effective total cost is higher than the headline add-on price
- The exact underlying model version used for a specific Microsoft 365 Copilot feature is not always publicly documented
- The consumer Copilot Pro plan was retired in 2026, creating a naming/migration transition for existing subscribers moving to Microsoft 365 Premium
Security & Privacy
For Microsoft 365 Copilot, Microsoft documents commercial data-protection commitments — including that Microsoft 365 Copilot does not use tenant prompts and responses to train the underlying foundation models under standard commercial terms — and grounds responses using a tenant's existing Microsoft 365 permissions model via Microsoft Graph. Consumer Copilot Chat's data-use terms are governed separately under Microsoft's consumer privacy policy; consult Microsoft's own Copilot and Microsoft 365 trust documentation for the terms applicable to a specific plan.
Best For
Microsoft Copilot is best suited to organizations and individuals already standardized on Windows and Microsoft 365 who want AI assistance embedded directly inside the documents, spreadsheets, email, and meetings they already work in, rather than a separate destination app.
Alternatives
- Google Gemini — the equivalent choice for Google Workspace/Android-centric organizations
- Claude (Anthropic) — stronger dedicated coding-agent and long-context capabilities
- ChatGPT (OpenAI) — the consumer-facing assistant behind much of Copilot's own model stack
- Perplexity — a more search/citation-first alternative for research
- GitHub Copilot — Microsoft's separate, IDE-focused coding-completion product
Frequently Asked Questions
Is Microsoft Copilot free?
Yes. A free Copilot Chat is available on web, Windows, Mac, iOS, and Android. Microsoft 365 Copilot for business and enterprise use is a separate paid add-on on top of a qualifying Microsoft 365 plan.
What happened to Copilot Pro?
Microsoft retired the consumer Copilot Pro plan in 2026, replacing it for individual subscribers with Microsoft 365 Premium as the consumer paid tier.
What AI model powers Copilot?
Consumer Copilot Chat runs primarily on OpenAI's GPT-5 model family, including a "Smart Plus" mode using GPT-5.2 rolled out from January 2026. The specific model behind a given Microsoft 365 Copilot business feature is not always publicly disclosed.
How much does Microsoft 365 Copilot cost for a business?
The Business add-on lists at $21/user/month billed annually (a promotional $18/user/month ran through December 31, 2026), or $25.20/user/month billed monthly, on top of a qualifying Microsoft 365 Business plan.
Is Microsoft Copilot the same as GitHub Copilot?
No. GitHub Copilot is a separate, IDE-focused code-completion product with its own pricing, distinct from the Microsoft 365/Windows Copilot assistant covered in this article.
Final Summary
Microsoft Copilot in September 2026 is split between a free, Windows-integrated consumer chat assistant and a paid Microsoft 365 Copilot add-on for business and enterprise users, layered on top of an existing Microsoft 365 subscription. Its main documented strength is depth of integration with Windows and Microsoft 365 apps; because Microsoft has changed consumer plan names (retiring Copilot Pro for Microsoft 365 Premium) and rolled out new model modes (GPT-5.2 "Smart Plus") during 2026, current plan names and prices should be verified at microsoft.com/microsoft-365/copilot/pricing.
Frequently asked questions
- Is Microsoft Copilot free?
- Yes. A free Copilot Chat is available on web, Windows, Mac, iOS, and Android. Microsoft 365 Copilot for business and enterprise use is a separate paid add-on on top of a qualifying Microsoft 365 plan.
- What happened to Copilot Pro?
- Microsoft retired the consumer Copilot Pro plan in 2026, replacing it for individual subscribers with Microsoft 365 Premium as the consumer paid tier.
- What AI model powers Copilot?
- Consumer Copilot Chat runs primarily on OpenAI's GPT-5 model family, including a "Smart Plus" mode using GPT-5.2 rolled out from January 2026. The specific model behind a given Microsoft 365 Copilot business feature is not always publicly disclosed.
- How much does Microsoft 365 Copilot cost for a business?
- The Business add-on lists at $21/user/month billed annually (a promotional $18/user/month ran through December 31, 2026), or $25.20/user/month billed monthly, on top of a qualifying Microsoft 365 Business plan.
- Is Microsoft Copilot the same as GitHub Copilot?
- No. GitHub Copilot is a separate, IDE-focused code-completion product with its own pricing, distinct from the Microsoft 365/Windows Copilot assistant covered in this article.