AI confidence

What each Copilot licence covers

Julia20 October 202614 min read
Three colleagues work at laptops in an open-plan office, each holding an umbrella indoors: a tiny cocktail umbrella, an ordinary black umbrella and a huge green and white golf umbrella.

Executive summary

Copilot is Microsoft's AI assistant, and the name now covers several versions that can reach different things. This piece covers what Copilot is, how it spread through Microsoft 365, what each version can and can't do, how people tend to use it, what it can do in Outlook, PowerPoint and Excel, and how Copilot training can match those features to the work each team does.

Copilot is the icon that now appears across Microsoft 365, and the chat window that opens when you click it. Many people open it to ask a question or tidy a paragraph.

The name covers more than one product, and what Copilot can reach and do depends on the licence behind it. Microsoft also changes the names and the features often.

1What Copilot is

Copilot is Microsoft's name for its AI assistant. At work, people sign in with the firm's Microsoft account, and Microsoft applies what it calls enterprise data protection: prompts and responses are covered by the same contractual terms as the firm's email in Exchange and its files in SharePoint. Under that protection, Microsoft says prompts and responses are not used to train foundation models.

Microsoft also offers Copilot for personal use, signed in with a personal Microsoft account. When a work file is opened with Copilot from a home Microsoft 365 plan, Microsoft says it can work with the open document but can't see the firm's other files, and file access stays tied to the work account. The firm's administrator can switch that off.

2How Copilot spread

Copilot first reached Microsoft's everyday products in February 2023, when the company launched a new Bing search engine and Edge browser with AI built in, and described them as "an AI copilot for the web". Later that year it brought Copilot to its work apps, and Copilot for Microsoft 365 became generally available to enterprise customers on 1 November 2023.

In January 2024, Microsoft removed the 300-seat purchase minimum, so firms on Microsoft 365 Business Standard and Business Premium could buy it. In January 2025 it introduced Copilot Chat, a web-grounded chat with enterprise data protection, alongside the paid version grounded in a person's meetings, emails, chats and documents.

By November 2025, Microsoft was including Copilot Chat in eligible Microsoft 365 subscriptions at no extra charge, and Microsoft announced Copilot Business for smaller organisations, available from December. Microsoft has since renamed the chat app Microsoft Copilot Chat.

3The versions of Copilot

Microsoft's own comparison sets out three levels for people signed in with a work account. When a person signs in to Copilot at work, Microsoft shows them a label for the level they are on.

  • Copilot Chat (Basic). Secure chat grounded in web data, which comes with qualifying Microsoft 365 business and enterprise subscriptions. It can't use the firm's data through Microsoft Graph, so a person uploads a file with the prompt, works with content open in Teams or Outlook, or uses a pay-as-you-go agent. At this level there is no Copilot in Word, Excel, PowerPoint or OneNote.

  • M365 Copilot (Basic). The same web-grounded chat, plus standard access to Copilot in Word, Excel, PowerPoint and OneNote.

  • M365 Copilot (Premium). The paid add-on licence. It draws on web data and work data, and "pulls information automatically" from the person's meetings, emails, chats and files. It comes with priority access to the full experience in the apps, and with agents that use work data, such as Researcher and Analyst.

For organisations with up to 300 users, Microsoft sells the paid licence as Copilot Business. It can be added to Microsoft 365 Business Basic, Business Standard or Business Premium, or bought as part of Business Standard or Business Premium plans with Copilot included. Microsoft says it has the same capabilities as the enterprise licence.

Where Copilot is available in Word, Microsoft's guidance asks people to verify "facts, numbers, citations, names, policy statements" before sharing, and says the person using it is responsible for "deciding whether to keep, revise, or remove" what Copilot wrote. Human in the loop looks at where that checking sits in a firm's work.

In the 2025 Victorian Lawyer Census, 37% of the 1,739 lawyers who answered the question reported using AI in their work. Of those, 65% used general-purpose tools and 34% used Microsoft 365 Copilot. In CPA Australia's Business Technology Report 2025, 35% of the 252 Australian accounting and finance professionals surveyed said AI is used occasionally in their business, "mainly through free or off-the-shelf tools such as ChatGPT and Microsoft Copilot".

The Reserve Bank heard from 105 medium to large firms in its liaison program and found adoption "is typically limited to digital assistants such as Microsoft Copilot or ChatGPT", used "for discrete tasks such as summarising emails and undertaking research". In an Australian National University survey of 3,577 Australian adults, searching for information and facts was the most frequent use of generative AI at work and at home, followed by writing communications.

Microsoft's own analysis, a working paper not yet peer reviewed, looked at 175,274 Copilot Chat prompts from one week in February 2026. Asking for information and refining content made up almost 60% of them. In a separate sample of more than 5.3 million prompts from June to September 2025, the same researchers found requests for information falling from 38% to 33% of the total, and content refinement rising from under 22% to 28.5%.

In firms, what we tend to see is Copilot opened as a chat or search tool, with the features inside Outlook, PowerPoint and Excel getting less use.

In the Australian Government's 2024 Copilot trial, which ran across more than 50 agencies, 72% of respondents used Copilot to summarise Teams meetings and 71% to summarise or rewrite in Word. Fewer used it to draft in Outlook (43%), create content in PowerPoint (33%) or analyse data in Excel (20%). In focus groups, participants said they often forgot Copilot was available inside the apps, because it was not obvious in the interface. The trial is foundational research from 2024, and Microsoft has since changed how Copilot appears in Word, Excel and PowerPoint, with a single Copilot button anchored in the corner of the document.

34%of Victorian lawyers who use AI use Microsoft 365 Copilot
Almost 60%of Copilot Chat prompts ask for information or refine content
20%of Australian Government trial respondents used Copilot to analyse data in Excel

5Copilot in Outlook, PowerPoint and Excel

Sorting email. In Outlook for Microsoft 365, Prioritize my inbox gives incoming email a high, normal or low priority, based on who is on the thread, their job titles and what the email says. When a prioritised message is opened, Copilot shows a few lines explaining why. It only sorts mail that arrives after the feature is switched on, and Microsoft is rolling it out gradually.

Writing email. Copilot can draft a new message, a reply or a forward from a short prompt, and the draft can be made shorter, longer or a different tone before it is kept. It can also summarise a long thread, such as a back and forth about a disputed invoice, with numbered citations linking to the messages it drew on, and offer coaching on a draft before it goes.

PowerPoint. In PowerPoint's Agent Mode, a person describes the presentation they need, and Copilot may ask about the audience and the style they want before building the slides. Microsoft says support for referencing files is coming to Agent Mode. Separately, Copilot can create a presentation from a Word document. Microsoft recommends organising the document with Word's styles, and says Copilot works best with documents under 24 MB. A client seminar written up in Word can become a first set of slides.

Excel. Copilot in Excel can apply formulas across multiple sheets and summarise data. Ask it a question about the data and it shows the answer as charts, PivotTables, summaries, trends or outliers, and it can sort, filter and apply conditional formatting. For an accounts team, that could be a debtors list sorted by age, with the outliers flagged.

The COPILOT function, a formula Microsoft offered in preview, was withdrawn on 14 September 2026. Microsoft's Excel guidance says Copilot "can sometimes make mistakes", and asks people to review and verify what it creates before relying on it.

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The investigation looks at the AI your people use today, what comes with the firm's software and how long the firm's work takes. You keep the findings either way.

6What comes with the plan

If the firm runs on Microsoft 365, some of this comes with the plan. Microsoft says Copilot Chat comes with qualifying Microsoft 365 business and enterprise subscriptions, and lists Copilot in Outlook as included with or without the paid licence. A qualifying business subscription is also one of the ways to get Copilot in Excel. What each level costs is set out in reviewing your AI subscriptions, along with how to list the firm's AI spending.

The practice management system, the document system and the accounting package can carry AI features too, sometimes inside a licence the firm already holds.

7Copilot training by feature and role

In the same Australian Government trial, run by the Digital Transformation Agency, 75% of participants who had three or more forms of training felt confident using Copilot, 28 percentage points more than those with one form. The trial shows the two go together, but it can't show which caused the other.

In the UK, the Department for Work and Pensions found 89% of the 3,549 people in its Copilot trial learned by exploring on their own, and most could not remember attending a formal session. They asked for shorter sessions on one feature at a time, and for sessions with people in similar roles.

The firm decides which licences go to whom, which features are switched on and what can go into the tool. Copilot training starts from those decisions. Each person finds out which Copilot they have and what it can reach. Each team learns the one or two features that suit its daily work, practises them on its own kind of documents, and learns the check that goes with each one. For a person in accounts, that could mean using Copilot in Excel to build a PivotTable from the month's figures, then checking the totals before they go to a partner.

Setting up Copilot training

1

List who has which Copilot.

Ask your IT provider or IT manager for the licences the firm holds and the features switched on, person by person. Each person can also see their own label when they sign in to Copilot.

2

Write down what each level can reach.

Web data, the files a person uploads or has open in the app, or the person's wider work data. Add what can go into Copilot under the firm's AI policy.

3

Pick one feature for each team.

Outlook drafting for the people answering client email, Excel for accounts, PowerPoint for the people who prepare seminars and pitches.

4

Take one feature at a time.

Use approved or de-identified material from that team's work. AI training for the whole firm covers how this sits alongside the foundation the whole firm shares.

5

Show the check with the feature.

Work through an example where Copilot gets it wrong, and show what to look for.

6

Come back when Microsoft changes it.

Keep a note of feature changes, and run a short refresher when one affects a team.

Before

Copilot left to each person

  • Each person works with whichever version they hold
  • Copilot used mostly as a chat and search box
  • In-app features found one person at a time
  • Each person checks the output in their own way
  • Feature changes noticed as they come
After

Copilot training that fits the work

  • Each person knows which Copilot they have
  • Each team uses one or two features for its daily work
  • People know which features their licence includes
  • The check is taught with each feature
  • Training is revisited when features change

8Where we come in

Our investigation covers the AI your people use, what comes with the firm's software, and how long the firm's work takes today, so the firm starts from a baseline of its own. A session with your IT provider covers what the firm's systems permit. The findings belong to your firm whether or not we go any further together.

After that, each person completes AI Foundations. Cohort workshops, grouped by team or skill level, then work through the tools the firm already has on the team's own kind of work. In each team, an AI Champion keeps the methods going once we step back, and we measure task times again at three months.

If you'd like to talk through Copilot training for your firm, get in touch. The first conversation works out whether your firm is the right fit for the AI Uplift Program, and whether we are the right people to help.

Copilot training

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Frequently asked questions

What is Copilot training?

Learning which version of Copilot you have, what it can reach, and how to use the features that suit your role, including how to check its work.

What is the difference between Copilot Chat and Microsoft 365 Copilot?

Copilot Chat comes with qualifying Microsoft 365 business and enterprise subscriptions and is grounded in web data, working with files you upload or have open. The paid Microsoft 365 Copilot licence, shown as M365 Copilot (Premium), also draws on your meetings, emails, chats and files, and gives priority access to the full experience in Word, Excel, PowerPoint and OneNote.

Is Copilot included in Microsoft 365?

Copilot Chat comes with qualifying Microsoft 365 business and enterprise subscriptions, and Copilot in Outlook is included with or without the paid licence. Access to Copilot in Word, Excel and PowerPoint depends on the person's level, and the fullest version is a paid add-on.

Can Copilot read my email?

Without the paid licence, Copilot works with content open in Outlook or Teams and files the person uploads. With it, Copilot can draw on the person's meetings, emails, chats and files through Microsoft Graph.

What should Microsoft Copilot training cover?

Which version each person has and what it can reach, the features that suit each team's work, what can go into Copilot, and how to review its output. Microsoft's own guidance says Copilot can make mistakes and asks people to verify facts, numbers, citations and names before sharing.

Julia

About the author

Julia leads the investigation and is the author of the report presented to your leadership. Her background is in research, data analysis and business strategy.

Primary sources

Microsoft, Reinventing search with a new AI-powered Microsoft Bing and Edge, your copilot for the web, Official Microsoft Blog, 7 February 2023 (historical record)blogs.microsoft.comSpataro, Announcing Microsoft 365 Copilot general availability and Microsoft 365 Chat, Microsoft, 21 September 2023 (historical record)microsoft.comSpataro, Expanding Copilot for Microsoft 365 to businesses of all sizes, Microsoft, 15 January 2024 (historical record)microsoft.comSpataro, Copilot for all: Introducing Microsoft 365 Copilot Chat, Microsoft, 15 January 2025 (historical record)microsoft.comSpataro, Microsoft Ignite 2025: Copilot and agents built to power the Frontier Firm, Microsoft, 18 November 2025microsoft.com
Microsoft Learn, What is Microsoft Copilot?, updated 1 October 2026
Microsoft Learn, Frequently asked questions about Microsoft Copilot Chat, updated 18 August 2026learn.microsoft.comMicrosoft Learn, Microsoft Copilot Business FAQ, updated 25 August 2026learn.microsoft.comMicrosoft Partner Center, Now available: Microsoft 365 Business with Copilot SKUs, July 2026 announcements, 1 July 2026learn.microsoft.comMicrosoft Support, How Copilot Chat works with and without a Microsoft Copilot license, updated 29 August 2026support.microsoft.comMicrosoft Support, The Copilot Dynamic Action Button in Word, Excel and PowerPoint, updated June 2026support.microsoft.comMicrosoft Support, Use Microsoft 365 Personal, Family, or Premium at work, updated 18 August 2026support.microsoft.comMicrosoft Support, Welcome to Copilot in Outlook, updated 28 September 2026; Prioritize my inbox, updated 30 January 2026; Draft an email message with Copilot in Outlook, updated 18 September 2026support.microsoft.comMicrosoft Support, Create a new presentation with Copilot in PowerPoint, updated 16 December 2025support.microsoft.comMicrosoft Support, Get started with Copilot in Excel and Frequently asked questions about Copilot in Excel, both updated 25 September 2026; COPILOT function, updated 14 September 2026support.microsoft.comMicrosoft Support, Draft and add content with Copilot in Word, updated 16 September 2026support.microsoft.comDigital Transformation Agency, Evaluation of the whole-of-government trial of Microsoft 365 Copilot, October 2024, about 5,765 licences across 56 agencies (foundational)digital.gov.auFernando, McLoughlin and Ratnayake, Technology Investment and AI: What Are Firms Telling Us?, RBA Bulletin, 105 medium to large firms, 13 November 2025rba.gov.auVictorian Legal Services Board + Commissioner, Generative AI Use in the Legal Profession: Findings from the 2025 Victorian Lawyer Census, 1,887 lawyers, 20 April 2026lsbc.vic.gov.auCPA Australia, Business Technology Report 2025, 1,117 accounting and finance professionals including 252 in Australia, 28 October 2025cpaaustralia.com.auHerrington, Biddle, Okai-Ugbaje and O'Brien, AI Adoption in Australia: A Partnership between Google and ANU, ANU, 3,577 Australian adults, 9 July 2026cybernetics.anu.edu.auDepartment for Work and Pensions, An Evaluation of DWP's Microsoft 365 Copilot Trial, 3,549 staff, 29 January 2026gov.ukCounts, Tomlinson, Jaffe, Suri and others, AI in the Enterprise: How People Use M365 Copilot Chat, Microsoft, arXiv 2605.23958, 175,274 prompts (February 2026) and 5,342,156 prompts (June to September 2025), 11 May 2026 (not peer reviewed)arxiv.org

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