Microsoft has recently introduced an intriguing feature called Copilot Chat, which expands on their already available free chat service for Microsoft 365 business users. This new addition allows users to engage with pay-as-you-go agents, complete with a host of exciting attributes. With OpenAI’s GPT-4o model, users can enjoy seamless and secure interactions with this AI-enhanced tool. Additionally, the product features agents designed to automate tasks that are often repetitive, along with IT controls that include enterprise data protection and management of these agents.
Interestingly, as Microsoft’s Copilot lineup becomes even more intricate, it’s notable that the 365 Copilot Chat represents a re-launch of their previous Copilot service aimed at businesses. This seems like a strategic move on Microsoft’s part, clearly trying to usher more users into utilizing its AI services. Previously, the exclusive agent creation ability was linked to the Microsoft 365 Copilot experience, priced at $30 a month.
In a discussion with The Verge about Copilot Chat, Jared Spataro, Microsoft’s CMO of AI at work, mentioned, “It’s a free and reliable AI chat powered by GPT. You can upload files, making it very competitive, and we believe it surpasses others at this tier.”
According to Mary Jo Foley from Directions On Microsoft, the new service is available for those signed in with Entra ID accounts, much like its predecessor, Bing Chat Enterprise. For reference, Microsoft has upgraded Bing Chat Enterprise to feature Enterprise Data Protection (EDP), ensuring that prompts and responses are retained within their Microsoft 365 boundary.
Individuals using Entra IDs can access the Microsoft 365 Copilot Chat at no cost for creating AI agents. However, they need to set up a Pay-As-You-Go license and make use of Copilot Studio metering in Azure to develop these agents.
Now, when it comes to pricing, Copilot Chat introduces complexities. So, how does Copilot Studio metering function exactly? Well, it turns out to be rather intricate. The pricing structure revolves around message usage. Basic responses, not employing sophisticated AI, count as a single message, whereas those tapping into advanced AI are considered as two messages.
Notably, replies relying on advanced models and possibly interacting with Microsoft Graph are regarded as 30 messages. Jared Spataro explained, “A message equals 1 cent, which means you can convert a typical message to 1 cent, 2 cents, or 30 cents, depending on the complexity.”
Further elaborating on the service’s cost structure, Spataro stated, “One initial concern is if they’re simply opening an endless tab. The costs can be managed in a few ways. One is pay-as-you-go, similar to an open account being drawn down. Alternatively, you can buy consumption packs and once depleted, the service usage stops.”
Despite Microsoft’s claim that about 70% of Fortune 500 employees are already exploring Copilot AI, industry insiders express concerns about its possibly rushed introduction, which might not sit well with users. Yet, Spataro insists that Copilot Chat has already garnered favor among corporations utilizing Microsoft’s offerings: “We originally launched it as Bing Chat Enterprise. And though its naming trajectory is complex, there’s a significant number of users. People generally acclimate to it, appreciating its worth at work.”
Privacy and security concerns linger, despite CEO Satya Nadella’s efforts post-several security mishaps. An employee noted that the tool “manages to share information inadvertently made available to employees, like salary details.”
Ultimately, user sentiment towards Microsoft’s Copilot Chat rollout and its novel pricing framework remains to be seen, as does its impact on furthering Microsoft’s AI endeavors. Interestingly, a prior report by Business Insider underlines that Microsoft leans on third-party vendors to activate these AI applications, including Microsoft 365 Copilot, prompting a senior Microsoft figure to label a significant portion of Copilot AI tools as largely superficial.
