Copilot vs Copilot 365: Features and Pricing Compared

Copilot vs Copilot 365 is really a question of consumer versus business. Microsoft Copilot is the free AI assistant anyone can use with a personal Microsoft account, with paid extras bundled into Microsoft 365 Personal, Family and Premium. Microsoft 365 Copilot is the paid business add-on, priced per user, that works inside Word, Excel, Outlook and Teams using your organisation's emails, files and meetings.

Copilot vs Copilot 365 at a Glance

The two products share a name and much of the underlying AI, but they differ in who can buy them, what data they can see and how they are billed. US list prices below were checked on microsoft.com at the time of writing and change often, so confirm before you buy.

What Is Microsoft Copilot (the Free Version)?

Microsoft Copilot is Microsoft's general-purpose AI chat assistant for everyone, available in the Copilot app on Windows, the web, and iOS and Android. You can ask questions, draft text, summarise web pages, generate images and upload files, with usage limits on the free tier.

Paid consumer access no longer comes as a separate add-on. Copilot Pro is no longer sold, and Microsoft's page About Microsoft Copilot Pro states its support for existing subscribers ended on 1 August 2026. Instead, higher Copilot limits and Copilot inside the desktop Office apps now come bundled with Microsoft 365 Personal, Family and Premium. On Family and Premium, those AI features belong to the plan owner only; our Microsoft 365 Family guide explains what the other five members get.

What Is Microsoft 365 Copilot?

Microsoft 365 Copilot is the business version: an AI assistant licensed per user that works across Word, Excel, PowerPoint, Outlook, Teams and the Copilot app, and is grounded in your organisation's data.

"Grounded" is the key word. Through Microsoft Graph, the service that connects a company's mail, calendars, chats and documents, Microsoft 365 Copilot can answer questions such as "What did the client agree in last week's meeting?" or "Draft a reply using the figures in the Q3 spreadsheet". Because it works within each user's existing permissions, it only shows content that person could already open. The effect is that a company with untidy file permissions may see Copilot surface documents people didn't know they could reach, so many IT teams review sharing settings before rolling it out.

Microsoft sells two main routes, both requiring a qualifying Microsoft 365 plan first. Larger organisations buy Microsoft 365 Copilot for enterprise, listed at $30 per user per month on an annual plan. Smaller businesses can add Microsoft 365 Copilot Business to Business Basic, Standard or Premium, or buy Business Standard or Business Premium bundled with Copilot.

What Is Microsoft 365 Copilot Cowork?

Copilot Cowork is an agent feature inside Microsoft 365 Copilot that carries out longer, multi-step tasks for you, such as gathering material from several sources and producing a finished document, and keeps running in the cloud after you close your laptop.

Microsoft announced Cowork as generally available worldwide on 16 June 2026. It needs a Microsoft 365 Copilot user licence, an administrator has to switch it on for the organisation, and it is billed by usage in Copilot Credits on top of the per-user fee. It is not part of the consumer Copilot app or Microsoft 365 Family.

Which Copilot Do You Actually Need?

Most home users need only the free Copilot app or the Copilot features already bundled in Microsoft 365 Personal or Family; Microsoft 365 Copilot is only worth it for organisations that want AI working across their own business data.

Choose consumer Copilot if you:

• Want an AI assistant for general questions, writing and images
• Use a personal Microsoft account (Outlook.com, Hotmail, Xbox)
• Already pay for Microsoft 365 Personal or Family, or don't want to pay at all

Choose Microsoft 365 Copilot if you:

• Run a business on Microsoft 365 with work accounts, Exchange mailboxes and Teams
• Want summaries of your meetings, inbox and shared files
• Need admin controls, data protection commitments and usage reporting

The comparison with other assistants follows the same logic. Against ChatGPT, consumer Copilot is a general chat tool with Microsoft account and Windows integration; Microsoft 365 Copilot's advantage is its access to company data, not raw chat ability.

Do You Need Microsoft 365 to Use Copilot?

No. The free Copilot app needs only a Microsoft account. You need a Microsoft 365 subscription only if you want Copilot working inside the Office desktop apps, and a business Microsoft 365 plan before you can add Microsoft 365 Copilot.

This is where perpetual Office differs. A one-time-purchase licence such as Office 2024 gives you the desktop apps without a monthly fee, but it does not include a paid Copilot plan, so you would rely on the free Copilot app alongside it. If AI inside Word and Excel isn't a priority, that combination costs far less over a few years. Our guide to Microsoft Office vs Microsoft 365 covers the buy-once versus subscribe decision in full.

A Common Mistake We See

A common mistake is a small business buying a Copilot-enabled consumer plan, such as Microsoft 365 Personal, for staff and expecting it to summarise team meetings or search the company's shared files. Consumer Copilot cannot see work mailboxes or SharePoint, because it runs on personal Microsoft accounts. The reverse also happens: an individual tries to buy Microsoft 365 Copilot without a qualifying business plan and finds the purchase blocked.

Decide first whether the AI needs your organisation's data. If it does, you need business Microsoft 365 plus a Copilot licence. If it doesn't, the free app or a consumer plan will do. If your main need is simply reliable Office apps, our support team can help you pick and activate a perpetual Office or Microsoft 365 option.

Frequently Asked Questions

Is Copilot 365 the same as Microsoft Copilot?

No. Microsoft Copilot is the consumer assistant for personal Microsoft accounts, free with optional extras in Microsoft 365 Personal, Family and Premium. Microsoft 365 Copilot is the business product licensed per user, which uses your organisation's emails, files, chats and meetings to answer questions inside Word, Excel, Outlook and Teams.

How much does Microsoft 365 Copilot cost?

At the time of writing, Microsoft lists Microsoft 365 Copilot at $30 per user per month on an annual plan, and the Microsoft 365 Copilot Business add-on for smaller organisations from $18 per user per month. Both need a qualifying Microsoft 365 plan. Prices vary by region and change, so check Microsoft's site.

Is Copilot free with Microsoft 365 Family?

Copilot features in Word, Excel, PowerPoint, Outlook and OneNote are included in Microsoft 365 Family at no extra charge, but only for the subscription owner. The other members get the Office apps and storage, and can use the free Copilot app like anyone else with a Microsoft account.

Is Copilot vs ChatGPT a fair comparison?

For consumer Copilot, yes: both are general AI chat assistants with free and paid tiers. Microsoft 365 Copilot is a different category, because it is built around a company's own Microsoft 365 data, permissions and admin controls. Compare it against business AI tools rather than a personal chat subscription.

Can I get Microsoft 365 Copilot with a personal Microsoft account?

No. Microsoft 365 Copilot is assigned to work or school accounts in an organisation's Microsoft 365 tenant, and it requires a qualifying business or enterprise plan. Personal account holders get Copilot through the free app or through Microsoft 365 Personal, Family or Premium instead.

What replaced Copilot Pro?

Copilot Pro is no longer sold, and Microsoft ended support for existing subscribers on 1 August 2026. Microsoft points former subscribers to Microsoft 365 Premium, which bundles the Office apps with the highest consumer Copilot limits, or to Personal and Family, which include Copilot at lower usage limits.

Conclusion

In the Copilot vs Copilot 365 decision, households and individuals should stick with free Copilot or the AI bundled in a Microsoft 365 consumer plan, while businesses that want AI working across their own data need Microsoft 365 Copilot. If you are mainly after dependable Office apps, browse our Microsoft 365 and Office 365 options before committing to an AI add-on.

Useful Links