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Microsoft Announces Pricing Option for 365 Copilot: Everything You Need to Know

September 25, 2023 1.0K views

Microsoft Copilot is an advanced productivity tool introduced by Microsoft, designed to revolutionize collaboration and efficiency within the Microsoft 365 suite. Initially announced in March 2023, this innovative solution aims to streamline workflows and assist users in generating high-quality code, documents, and more. In this article, we'll explore the pricing options for Microsoft Copilot and delve into how businesses can leverage this tool to boost productivity and collaboration within their organizations.

Pricing Details

During the Microsoft Inspire event on July 18, 2023, Microsoft announced the pricing details for Microsoft 365 Copilot. The pricing model for this innovative tool will be a subscription-based plan, with a fixed cost per user per month.

Commercial Customer Charges and Free Trials:

For commercial customers, the cost of Microsoft 365 Copilot will be $30 per user per month. This subscription fee will grant access to Copilot's advanced productivity features within the Microsoft 365 suite.

As for free trials, the announcement did not mention any specific details about whether Microsoft will offer a free trial period for Copilot. However, it's common for Microsoft to provide trial periods for their new products and services, so it's possible that there might be trial options available for customers to explore the capabilities of Copilot before committing to a paid subscription.

Compatibility with 365 Subscription Models:

Microsoft 365 Copilot will be compatible with specific Microsoft 365 subscription models. Specifically, it will be available to customers who are using Microsoft 365 E3, E5, Business Standard, and Business Premium subscriptions. Users with these subscription levels will have the option to add Copilot to their existing plans and take advantage of its features for enhanced productivity and collaboration within their organizations.

Bill Increase

To calculate the annual increase in billing per user for subscribing to Microsoft Copilot, we need to add the cost of Copilot ($30 per user per month) to the existing annual subscription fee of the chosen plan. Let's calculate the annual cost increase for each plan compatible with Copilot:

Microsoft 365 E3 E5


Microsoft 365 Business


Plan Type

Microsoft 365 E3

Microsoft 365 E5

Microsoft 365 Business Standard

Microsoft 365 Business Premium

Original Subscription Cost

$36.00/user/month x 12 months = $432.00/user/year

$57.00/user/month x 12 months = $684.00/user/year

$12.50/user/month x 12 months = $150.00/user/year

$22.00/user/month x 12 months = $264.00/user/year

Annual Increase with Copilot

$30.00/user/month x 12 months = $360.00/user/year

$30.00/user/month x 12 months = $360.00/user/year

$30.00/user/month x 12 months = $360.00/user/year

$30.00/user/month x 12 months = $360.00/user/year

Total Annual Cost with Copilot

$432.00 + $360.00 = $792.00/user/year

$684.00 + $360.00 = $1,044.00/user/year

$150.00 + $360.00 = $510.00/user/year

$264.00 + $360.00 = $624.00/user/year

Now, let's provide examples for business owners by multiplying the total annual cost with Copilot by the number of employees:

For 50 employees (using E3 as the base plan):

Total Annual Cost for 50 employees with Copilot: $792.00/user/year x 50 employees = $39,600.00/year

For 100 employees (using Business Premium as the base plan):

Total Annual Cost for 100 employees with Copilot: $624.00/user/year x 100 employees = $62,400.00/year

Should You Upgrade?

Upgrading to integrate Copilot AI for work can bring numerous benefits that enhance productivity and streamline your workflow across various Microsoft applications, such as Word, PowerPoint, and Excel.

  1. Improved Writing Efficiency: With Copilot AI integrated into Microsoft Word, you can benefit from its advanced language models to assist in generating high-quality content. Copilot can suggest relevant phrases, correct grammar errors, and propose contextual word choices, saving valuable time during the writing process. This feature is particularly useful for professionals who frequently create reports, proposals, or any other written documents.

  2. Enhanced Presentation Creation: When using Copilot AI in PowerPoint, creating engaging presentations becomes more efficient. Copilot can help in generating slide content, formatting text, and suggesting visual elements to support your message effectively. This is especially valuable for busy professionals who need to deliver compelling presentations regularly.

  3. Streamlined Data Analysis: For Excel users, Copilot AI can simplify data analysis and manipulation. It can generate complex formulas, perform data transformations, and offer insights on handling datasets more effectively. This capability is highly advantageous for finance professionals, analysts, and data-driven decision-makers.

  4. Time and Effort Savings: The integration of Copilot AI across these Microsoft applications can significantly reduce the time and effort spent on repetitive tasks, allowing users to focus on higher-value activities. Whether it's drafting a report, creating a presentation, or analyzing data, Copilot's intelligent assistance can help boost productivity.

  5. Learning and Efficiency Gains: Copilot AI continually learns from user interactions, which means its suggestions become more tailored and accurate over time. As you use Copilot more frequently, it adapts to your writing and work style, leading to even greater efficiency gains in the long run.

Recommendation:

Considering the benefits of integrating Copilot AI into Microsoft Word, PowerPoint, and Excel, upgrading to use this AI-powered tool is a reasonable recommendation. The time saved on repetitive tasks, improved content quality, and enhanced efficiency can make a significant positive impact on your productivity. However, it's essential to evaluate your specific needs and consider the cost of the upgrade, especially for businesses with multiple users, to ensure it aligns with your budget and requirements. If feasible, exploring the free video links for Copilot in Word, PowerPoint, and Excel from the provided source can offer valuable insights before making a decision.

Best Alternative Office AI Tool - WPS AI

WPS AI


If you are looking for a powerful alternative to Microsoft Copilot that is accessible for consumers with lower budgets, WPS AI is an excellent choice. WPS AI, integrated into WPS Office, offers a range of AI-powered features that can enhance productivity and creativity for individuals and small businesses.

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WPS AI

WPS AI provides various intelligent tools that can assist users in everyday tasks across WPS Office applications, such as Writer, Presentation, and Spreadsheets. Some of the key AI features offered by WPS AI include:

  1. Smart Writing Assistance: WPS AI can help improve writing efficiency by suggesting contextual word choices, grammar corrections, and relevant phrases, making the writing process smoother and error-free.

  2. AI-Powered Presentation Support: When creating presentations with WPS AI, users can benefit from AI-generated slide content suggestions, intelligent formatting assistance, and visual design recommendations to craft engaging and professional presentations.

  3. Data Analysis and Insights: WPS AI aids users in data analysis within Spreadsheets, generating formulas, providing data visualization suggestions, and simplifying complex calculations, making data manipulation more efficient.

The advantage of WPS AI over Microsoft Copilot for consumers lies in its affordability and accessibility. While Microsoft Copilot is primarily targeted at enterprises and large businesses with specific technical prerequisites, WPS AI is available for a wider range of users, including home and personal licenses. This makes it an attractive option for individuals or small businesses with lower budgets who wish to experiment with AI-powered features to enhance their productivity and creativity.

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FAQs about Microsoft Copilot Pricing

Q1. What caused the steep pricing of Microsoft 365 Copilot?

The pricing of Microsoft 365 Copilot is relatively high due to its target audience. The tool is currently focused on corporations and enterprises. Microsoft understands that these larger organizations can afford a premium price for advanced AI-driven productivity features like Copilot. As more enterprises use Copilot and experience its benefits, the demand for the tool is expected to increase, reinforcing Microsoft's decision to set the pricing at a level that aligns with the value it provides to these businesses.

Q2. When will Microsoft 365 Copilot be launched to the public?

Microsoft released a preview version of Microsoft 365 Copilot for Windows 11 in June 2023. As for the public launch, Microsoft 365 Copilot Enterprise will be fully available on November 1. The preview version allows a select group of users to try out the tool and provide feedback, helping Microsoft make necessary improvements before the full public release.

Q3. Will Microsoft 365 Copilot be available for Mac OS at launch?

At launch, Microsoft 365 Copilot will not be available for Mac OS. The Copilot feature currently works in the Windows desktop client application. While Microsoft aims to expand its availability in the future, it is important to note that Copilot is still in the technical preview phase and accessible through OpenAI's Codex platform. After further testing and preview, Microsoft plans to first implement Copilot in the Windows Office desktop client application, followed by the Office for web (online) version, and then eventually Office for Mac OS.

Q4. Will Windows 10 support 365 Copilot?

As of now, Microsoft has only announced Windows Copilot for Windows 11. There have been no indications that Windows 10 will receive support for Copilot. Microsoft has been encouraging users to upgrade to Windows 11 to ensure they can access the latest features and enhancements. Therefore, it is unlikely that Windows 10 users will have access to Windows Copilot, as Microsoft aims to provide the best experience on its latest operating system, Windows 11.

Final Thoughts on Microsoft Copilot Pricing

In conclusion, the article delves into the pricing and availability details of Microsoft 365 Copilot, an AI-powered tool aimed at enhancing productivity within the Microsoft 365 suite. The steep pricing of Copilot is a result of its target market, catering to corporations and enterprises that can afford the premium cost for advanced AI features. While it is currently available in a preview version for Windows 11, the full public launch is expected later this year.

For consumers and smaller businesses seeking AI-powered productivity enhancements without the higher price tag, WPS AI emerges as a standout alternative. Integrated into the affordable WPS Office suite, WPS AI offers an array of intelligent features that can streamline various tasks in WPS Office applications, such as Writer, Presentation, and Spreadsheets.

15 years of office industry experience, tech lover and copywriter. Follow me for product reviews, comparisons, and recommendations for new apps and software.