Microsoft has just unveiled the Microsoft 365 Copilot Chat, a secure, web grounded GPT-4o-powered chat experience for work and education that is accessible though web, Teams and Outlook.
At the same time Microsoft has made Copilot in Microsoft 365 available for Microsoft 365 Family and Personal subscription owners, who can utilize the integrated Microsoft 365 Copilot experience through Microsoft 365 Apps like Word, Excel, PowerPoint, Outlook, etc.
What is Copilot Chat?
Microsoft 365 Copilot Chat is an AI chat-based solution that utilizes the capabilities of GPT-4 to provide users with secure, AI-driven conversations that are grounded in the web, and covered by the enterprise data protection (EDP) for prompts and responses.
All interactions are protected with enterprise-grade security measures, making it a reliable tool for both personal and professional use.
Starting 15. January 2025, Entra account users who have used Microsoft Copilot will be seamlessly transitioned to Microsoft 365 Copilot Chat (aka Copilot Chat).
Copilot Chat includes all the features of Microsoft Copilot, like file upload, web grounding, and enterprise data protection, while introducing the ability to discover, create, and use agents directly within Copilot Chat.
Key Features and Benefits
With Microsoft 365 Copilot Chat, users can discover, create, and use agents directly within the chat interface. These agents can access shared enterprise data and external data indexed via Microsoft Graph connectors, providing users with focused grounding on specific sources. Microsoft 365 Copilot Chat has both agents that can be used at no additional cost and agents that are billed based on metered consumption.
Agents that that are grounded in instructions, public websites, and uploaded files are available at no additional cost. Agents that access shared tenant data, such as SharePoint or Graph Connector content, will be billed based on metered consumption. Agents utilizing metered consumption are off by default for users in Copilot Chat.
Additional details on how to enable agents and setup pay-as-you-go billing: https://learn.microsoft.com/en-us/copilot/agents#enable-agents
Another feature of Copilot Chat is Copilot Pages, that allows users to turn Copilot responses into editable, sharable pages. This makes real-time collaboration and content management within Microsoft 365 apps more efficient and streamlined and enable users to easily share their work with colleagues and collaborate on projects in real-time, thereby enhancing overall productivity.
AI Credits
With the availability of Copilot in Microsoft 365 apps for home, Microsoft introduces the concept of AI Credits for Microsoft 365 Personal and Family subscriptions.
AI credits are used for tracking the usage of AI features in Microsoft 365 and Windows applications, and each AI-related action, like generating text, creating a table, or editing an image, uses one credit. For instance, asking Copilot to “summarize my inbox” would consume one AI credit.
Users of the Microsoft Designer app are allocated 15 AI credits each month.
Microsoft 365 Personal and Family subscribers receive 60 AI credits monthly, which can be utilized across various applications such as Word, Excel, PowerPoint, Outlook, Forms, OneNote, Designer, Notepad, Photos, and Paint.
Copilot Pro subscribers can enjoy extensive access to AI features in these same applications.
Note that currently, the AI benefits are only available to the subscription owner and cannot be shared with additional Microsoft 365 Family members. So, with a Microsoft 365 Family subscription, the free 60 AI credits can only be used by the subscription owner account.
Grounding
Grounding is a crucial aspect of Copilot Chat and ensures that the AI-driven responses are accurate and relevant to the user’s context.
For users without a Microsoft 365 Copilot license, Copilot Chat is grounded on public available data from Internet, and is not able to access shared enterprise data, individual data, or external data indexed using Microsoft Graph connectors. Users can, however, choose to upload files directly in the Copilot Chat experience.
In addition, Copilot Chat can utilize data from Microsoft Graph connectors and other enterprise data sources to deliver responses based on specific and relevant data. This approach can improve the user experience by providing more accurate and contextually relevant answers.
Difference Between Copilot Chat and Microsoft 365 Copilot
While both Copilot Chat and Microsoft 365 Copilot are designed to enhance productivity and collaboration, they serve different purposes.
Microsoft 365 Copilot is the broader AI-powered assistant that integrates with various Microsoft 365 apps to provide intelligent suggestions and automate tasks.
Copilot Chat on the other hand is focused on delivering secure, AI-driven conversations within the chat interface, and offers features such as agent integration and Copilot Pages, making it a great tool for real-time collaboration and communication.
Starting January 15, 2025, Copilot Chat will be available for Teams and Outlook across web, desktop, and mobile platforms. All features may not be available right away.
Getting Started with Copilot Chat
Accessing the Copilot Chat is straightforward and available at no additional cost for all users with a Microsoft 365 subscription and a Microsoft Entra account.
To ensure easy access, users can pin Copilot Chat in the Microsoft 365 app, Teams, and Outlook. This allows for quick and convenient access to the chat tool, making it an integral part of the daily workflow.
Using Copilot Chat in other Microsoft 365 apps like Word, Excel, and PowerPoint requires a Microsoft 365 Copilot license. Copilot Chat is pinned by default for users with a Microsoft 365 Copilot license.
Users can also explore the agents available within Copilot Chat. These agents are designed to enhance workflow and provide access to specific knowledge sources, and by utilizing these agents, users can streamline their tasks and improve overall efficiency.
For users who are signed in with a Microsoft Entra account for your tenant, a tenant administrator can pin Copilot to the navigation bar of Teams, Outlook, and the Microsoft 365 Copilot app.
Note that Global administrators can access this setting in the Microsoft 365 admin center by navigating to Copilot > Settings.
Privacy and Security
Microsoft Cloud and AI are built on trust and shared responsibility, and Microsoft places a strong emphasis on privacy and security. Copilot Chat is no exception to this, and the service is designed with privacy and security at its core, ensuring that all user data is protected.
Prompts and responses within Copilot Chat are not used to train the underlying AI models, and all chat data is encrypted during the session.
Microsoft 365 Copilot Chat offers enterprise data protection (EDP) for prompts and responses. When EDP is applied it can be visually verified by a green shield along the top of the user interface next to the New Chat button.
The Enterprise data protection refers to the controls and commitments, under the Microsoft Data Protection Addendum (DPA) and the Product Terms, that apply to customer data for users of Microsoft 365 Copilot and Copilot Chat, with Microsoft acting as a data processor. With enterprise data protection, Copilot Chat also supports the General Data Protection Regulation (GDPR).
This commitment to privacy and security ensures that organizations and users can also trust Copilot Chat with their most sensitive information.
For organizations aiming to introduce the use of Microsoft 365 Copilot, it is imperative to ensure that a strong foundation of security is in place, before stating the rollout of Copilot. The security should preferably be based on the principles of Zero Trust applying multiple layers of protection across the architecture, from users and devices to the application data that they have access to:
- Data protection
- Identity and access
- App protection
- Device management and protection
- Threat protection
- Secure collaboration with Teams
- User permissions to data
Embracing the Future of Work
Microsoft 365 Copilot Chat represents a significant step forward in the evolution of AI-powered tools.
By embracing this solution, users can experience greater efficiency, enhanced collaboration, and new and easier ways to achieve more.
References
- Copilot for all: Introducing Microsoft 365 Copilot Chat – https://www.microsoft.com/en-us/microsoft-365/blog/2025/01/15/copilot-for-all-introducing-microsoft-365-copilot-chat/
- Copilot Chat documentation – https://learn.microsoft.com/en-us/copilot/microsoft-copilot
- Microsoft enterprise data protection – https://aka.ms/EDPLearn
- Apply principles of Zero Trust to Microsoft 365 Copilot – https://learn.microsoft.com/en-us/security/zero-trust/copilots/zero-trust-microsoft-365-copilot