Microsoft 365 Copilot free is quickly becoming one of the most talked-about additions to the Microsoft ecosystem. If you use Word, Excel, Outlook or Teams, you may already have noticed Copilot appearing and wondered:
- What does the free version actually do?
- Why can I see Copilot in Office if I haven’t paid for it?
- And is the paid version worth the cost for my business?
In this guide, we’ll break down the free vs paid Copilot experiences, explain what’s included with each and help you decide whether Microsoft 365 Copilot makes sense for your organisation.
A quick note on “free Copilot”
Microsoft currently offers several Copilot experiences, which is where some confusion comes from.
The free Copilot experience does not connect to your organisation’s Microsoft 365 tenant or Microsoft Graph data. Availability and features can also vary depending on licence type and rollout stage, which means some users may see Copilot buttons or previews in Office apps without having the full paid experience.
What is Microsoft 365 Copilot?
Microsoft 365 Copilot is an AI assistant designed to work alongside your Microsoft 365 tools, including Word, Excel, Outlook, PowerPoint, Teams and OneNote. When fully licensed, it can help users:
- Draft and summarise emails
- Create and edit documents
- Analyse spreadsheets
- Build presentations
- Summarise meetings and conversations
- Find information across emails, files and chats
It does this by combining AI with your organisation’s Microsoft 365 data securely and within your existing permissions.
However, not all Copilot experiences offer this level of integration.
The free Copilot experience: what it can do
The free Copilot experience is best thought of as AI chat assistance, rather than a fully integrated productivity tool.
It can:
- Answer general questions
- Help rewrite or summarise selected text
- Offer suggestions and ideas
- Be accessed via the web and, in some cases, appear as a limited chat surface inside Office apps
This makes it useful for experimentation and getting familiar with AI-powered tools.
What the free Copilot experience doesn’t do
Where the free experience falls short is in business integration.
It does not:
- Provide the integrated Microsoft 365 Copilot experience
- Access your organisation’s emails, files, meetings or Teams chats
- Connect to your Microsoft 365 tenant or Microsoft Graph data
- Generate, edit or analyse content using your business data
- Understand organisational context, permissions or security policies
Some tenants may see limited Copilot buttons or preview features in Office apps, but these do not offer the full functionality of paid Microsoft 365 Copilot.
In short, it works alongside Office apps, not within your real workflows.
Paid Copilot options: Business vs Enterprise
Microsoft offers two paid Copilot options, depending on your organisation’s size and licensing.
Microsoft 365 Copilot for Business
Designed for small and medium-sized organisations using eligible Microsoft 365 Business licences.
It provides Copilot features across:
- Word, Excel, Outlook, PowerPoint
- Teams
- OneDrive and SharePoint
All while running securely within your Microsoft 365 environment and respecting existing permissions.
Microsoft 365 Copilot (Enterprise)
Built for organisations using eligible Enterprise plans.
It includes the same Copilot capabilities, with additional enterprise-grade governance, compliance and scalability features suited to larger or more complex environments.
Prerequisites to be aware of
To use paid Microsoft 365 Copilot, organisations need:
- An eligible Microsoft 365 licence
- Microsoft Entra ID
- OneDrive and SharePoint correctly set up
Security, privacy and admin controls
This is one of the most important differences between free and paid Copilot.
The free Copilot experience:
- Does not access your organisation’s tenant data
- Does not use Microsoft Graph
- Does not honour business permissions or compliance controls
Paid Microsoft 365 Copilot:
- Runs within your Microsoft 365 trust boundary
- Honours existing permissions and access controls
- Supports compliance, security and data-loss prevention policies
- Can be managed and configured by administrators at tenant level
For most businesses, this security model is a key reason to consider the paid option.
At-a-glance comparison
| Feature | Free Copilot | Copilot for Business | Copilot Enterprise |
| Access to Microsoft 365 data | No | Yes | Yes |
| In-app integration | Limited/preview | Full | Full |
| Security & compliance | Consumer-level | Business-grade | Enterprise-grade |
| Admin controls | No | Yes | Yes |
| Typical users | Individuals | SMEs | Larger organisations |
| Pricing | Free | Contact us | Contact us |
Is Microsoft 365 Copilot worth it?
Microsoft 365 Copilot is licensed per user, per month. Whether it’s worth the investment depends on how your team works.
It tends to deliver the most value for organisations where:
- Staff spend a lot of time in Outlook and Teams
- Documents, files and knowledge live in SharePoint and OneDrive
- Teams regularly create reports, proposals or presentations
- Meeting volume is high and follow-ups matter
Many businesses choose to start by licensing Copilot for key roles first, rather than rolling it out company-wide.
How Woodstock IT can help
Microsoft 365 Copilot isn’t just a switch you turn on. To get real value, it needs to be set up properly.
Woodstock IT can help you:
- Decide whether Copilot is right for your business
- Check licence eligibility and prerequisites
- Provision and assign Copilot licences correctly
- Ensure Microsoft 365 is configured securely
- Support users during rollout and early adoption
We focus on enablement, not theory, helping your team understand what Copilot can do, where it appears and how to use it confidently.
Thinking about Copilot?
If you’re unsure whether Microsoft 365 Copilot is a good fit for your organisation, we’ll give you clear, honest guidance; no hype, no jargon, just practical advice that works for your business.
Contact us today to discover how Woodstock IT can support you!
