Microsoft launches Copilot Chat: A pay-as-you-go AI assistant for corporate users

Microsoft has launched a new offering under its Copilot AI assistant lineup, providing businesses with a consumption-based pricing model. Dubbed “Copilot Chat,” this option serves as an alternative to the Microsoft 365 Copilot, which previously required companies to pay $30 per month per employee.

This move signals Microsoft’s push to integrate generative AI into workplace tools, even as adoption has been described by some analysts as “slow/underwhelming.” Copilot Chat aims to lower the barrier for businesses by offering a pay-as-you-use approach. According to Jared Spataro, Microsoft’s chief marketing officer for AI at work, “This model lets the business value prove itself.”

“Today, we’re introducing Microsoft 365 Copilot Chat, a new offering that adds pay-as-you-go agents to our existing free chat experience for Microsoft 365 commercial customers. Copilot Chat enables your entire workforce—from customer service representatives to marketing leads to frontline technicians—to start using Copilot and agents today,” Microsoft said in a blog post.

Microsoft 365 Copilot Chat: Boosting AI Adoption

Copilot Chat, a free service powered by OpenAI’s GPT-4, enables users to build AI agents through natural language commands in English, Mandarin, and other languages. These agents can assist with tasks like market research, drafting strategy documents, and preparing for meetings.

Advanced features, such as summarizing and transcribing Microsoft Teams calls or generating PowerPoint slides, are reserved for subscribers of the $30-per-month Microsoft 365 Copilot plan.

Copilot Chat focuses on providing core functionalities like fetching web information, summarizing uploaded documents, and creating task-performing agents. It also integrates seamlessly with customer files and third-party data sources to deliver enriched responses. However, it doesn’t embed directly into applications like Word and Excel, which differentiates it from the broader Microsoft 365 Copilot suite.

Users can access Copilot Chat through the Microsoft 365 Copilot app on Windows, Android, iOS, or the web via m365copilot.com. Pricing is based on usage, with charges calculated per “message.” Basic queries cost a penny each, while responses utilizing proprietary files cost 30 “messages.” Actions performed by agents incur 25 “messages” per action. “We’re talking a cent, 2 cents, 30 cents, and that is a very easy way for people to get started,” Spataro explained.

Addressing AI Cost Concerns

Some companies hesitated to adopt the original Microsoft 365 Copilot due to its fixed pricing model. Copilot Chat’s usage-based pricing directly addresses this concern, allowing organizations to pay for what they actually use. This flexibility could appeal to teams that want to experiment with AI tools without committing to large-scale rollouts.

For comparison, Salesforce’s Agentforce AI chat service charges $2 per conversation. Microsoft’s approach offers a more granular pricing structure, which might encourage smaller teams and startups to try AI integrations in their workflows.

AI Adoption and Growth

Microsoft CEO Satya Nadella recently revealed a significant increase in daily usage of Microsoft 365 Copilot, with the number of users more than doubling quarter-over-quarter. High-profile clients like UBS and Accenture have shown confidence in the platform, with UBS rolling out 50,000 licenses and Accenture committing to 200,000 users, CNBC reported.

Copilot Chat builds on this momentum, offering a more accessible entry point for organizations exploring how AI can reshape their operations. By providing a flexible and scalable option, Microsoft hopes to broaden adoption and prove the value of AI in the workplace.

The latest launch comes less than a year after Microsoft unveiled AI-powered ‘Copilot+’ PCs in May 2024 to challenge Apple MacBooks.