How does Microsoft 365 Copilot Pricing and Licensing Work

Copilot Pricing and Licensing

Copilot Pricing

Microsoft’s pricing is structured to offer flexibility. You can choose an annual subscription and pay £296.40 per user per year, or opt for a monthly payment plan with an annual commitment for £24.70 per user per month. Please note that VAT is not included in these prices.

Copilot Licensing

Microsoft 365 Copilot is available to users on a variety of eligible plans, including Microsoft 365 E3, E5, A3, and A5, as well as Microsoft 365 Business Standard and Premium and Office 365 E3, E5, A3, and A5. Additional plans, such as Microsoft 365 F1, F3, Office 365 E1, and Microsoft 365 Business Basic, are expected to gain access to Copilot in the near future. There’s no minimum license requirement, allowing users to start with just one license and assign a Copilot license alongside their existing eligible Microsoft 365 plan license.

Educational Customers: As of June 12, 2024, educational institutions can purchase Copilot for Microsoft 365 as a paid add-on to enhance their existing Microsoft 365 subscriptions.

Personal and Family: As of January 15, 2024, individuals and families can access Copilot Pro, a standalone version of Copilot for personal use. While Copilot Pro offers similar features to Copilot for Microsoft 365, it’s not integrated within all Microsoft applications. Copilot Pro is available as a paid add-on purchase.

Reducing Costs

Adding Copilot to your Microsoft 365 licenses will result in a substantial budget increase, regardless of your current plan. While the price of Copilot remains consistent across different M365 licenses, the overall impact on your budget will vary based on your current licensing plan.

To reduce the Copilot licensing costs, consider a strategic approach that prioritizes value over blanket licensing. Instead of purchasing licenses for every user, diligently negotiate discounts and implement a step discounting model, where pricing scales based on usage. This allows for initial adoption with a small group of early adopters, fostering user feedback and data-driven decisions about scaling deployment to maximize ROI and minimize overall expenditure.

Is Microsoft 365 Copilot Worth the Cost?

Microsoft has been studying the adoption of AI in the workplace through its Copilot program. Their research, involving 1,300 users, revealed a key finding: the “11-by-11 tipping point.” This refers to the fact that an average time saving of just 11 minutes per day is enough for most users to perceive AI as valuable. After 11 weeks of consistent use, users reported significant improvements in productivity, work enjoyment, work-life balance, and reduced meeting attendance. These findings demonstrate the tangible benefits of Microsoft 365 Copilot, even if they are initially relatively small.

FAQs

What is Copilot?

Copilot is a Generative AI assistant that enhances productivity within your Microsoft 365 applications.

How do I install Copilot?

Visit Microsoft’s website, choose the appropriate version for your operating system, and following the installation instructions. To enable Copilot within Microsoft 365 or Office 365, simply search for the “Copilot” button within the “Add-ins” section of your preferred application. For Microsoft Teams, you can find the “Copilot for Sales” app within the Apps section and install it.

When is Copilot for Microsoft 365 Available?

Copilot for Microsoft 365 is already available for different user groups

• Enterprise Customers: Available since November 1, 2023.
• Educational Staff: Available since January 12, 2024.
• Students (18+): Available since May 15, 2024.
• Personal and Family: Available since January 15, 2024.

Is There a Free Trial for Microsoft Copilot?

No, there is no free trial available for Microsoft Copilot at this time.

How Much Does Microsoft Copilot for Microsoft 365 Cost?

Microsoft Copilot is an add-on license priced at £24.70 per user per month.

Can I use Copilot with any Microsoft 365 plan?

To use Copilot, you need a qualifying Microsoft 365 license, such as:

• Microsoft 365 Apps for business/enterprise
• Business Basic/Premium/Standard
• F1/F3/A3/E3/A5/E5
• Office 365 E1/E3/E5
• Exchange Kiosk/Plan 1/2
• SharePoint Plan 1/2
• OneDrive for Business Plan 1/2
• Microsoft Clipchamp
• Microsoft Teams EEA/Enterprise/Essentials
• Microsoft Planner Plan 1
• Microsoft Project Plan 3/5/Online Essentials
• Visio Plan 1/2

What is Microsoft 365 Chat?

Microsoft 365 Chat (previously Business Chat) is a comprehensive assistant within Copilot. It provides deep insights into your work data and proactively helps you with tasks and inquiries across various Microsoft 365 apps.To use M365 Chat, you’ll need a full Copilot for Microsoft 365 license.

How Does Copilot Work with Microsoft 365 Apps?

Copilot integrates with key Microsoft 365 apps using AI and Microsoft Graph data. This allows you to perform tasks and respond to natural language prompts efficiently. Copilot aims to enhance the functionality of Microsoft 365 apps, making them more intuitive and powerful.

What About Data Privacy and Usage with Microsoft Copilot?

Microsoft prioritizes data privacy and ensures customer data is not used to train Copilot’s models. Your data and interactions within Copilot are securely stored within the Microsoft cloud, adhering to their existing data security commitments.