Guide to Microsoft Copilot Pricing & Licensing

Table of Contents

Introduction

Decision-makers in today’s business world know that harnessing the power of Artificial Intelligence (AI) is essential for staying competitive. Microsoft Copilot, an AI-powered suite of tools, offers a transformative solution to enhance productivity, collaboration, and innovation within your organization. This comprehensive guide will provide you with a clear understanding of Microsoft Copilot, its various modules and features, and a detailed breakdown of Microsoft Copilot pricing and licensing models tailored for businesses of all sizes. We’ll also explore successful implementation strategies and demonstrate how AlphaBOLD can help you navigate this exciting new landscape.

Whether you’re a CFO concerned about maximizing ROI or a CTO seeking to drive innovation, this guide will equip you with the knowledge needed to make informed decisions about Microsoft Copilot and its potential to revolutionize your workplace.

Microsoft Copilot Overview: Core Technologies

Understanding the technological foundation of Microsoft Copilot is crucial for decision-makers evaluating its potential impact on their organizations. Copilot’s capabilities are not mere buzzwords; they are rooted in cutting-edge AI technologies that have the potential to revolutionize how you work:

Large Language Models (LLMs):

Copilot uses advanced LLMs like GPT-4 to understand and generate human-like text, code, and creative content. This enhances communication, automates tasks, and provides insights from data, leading to a more efficient and innovative work environment.

Microsoft Graph:

Copilot integrates with Microsoft 365 via Microsoft Graph, connecting your data and workflows to deliver personalized assistance. By understanding your work context, Copilot provides timely information, saving you time and resources.
Infographic show the Microsoft’s Copilot Products and Platforms to use it on
Microsoft’s Copilot Products and Platforms to use it on

By merging LLMs with Microsoft Graph, Copilot becomes a key asset for decision-makers. It enables data-driven decisions, streamlines operations, enhances collaboration and promotes innovation within your organization. Understanding the technology helps assess how Microsoft Copilot’s pricing and licensing models meet your business needs and budget. Let’s explore these details next.

Integration and Pricing Update:

As of January 2025, Microsoft has integrated AI-powered Office features into its Microsoft 365 Personal and Family subscriptions, resulting in a $3 monthly price increase. These features were previously part of a separate $20 Copilot Pro subscription. Existing subscribers can opt out of the AI features to keep their current pricing.

Copilot Pro Subscription:

The Copilot Pro subscription is still available for power users who want early access and priority to new AI features.

Copilot for Microsoft 365: AI-Powered Capabilities

Infographic show the Microsoft Copilot for Microsoft 365 architecture
Microsoft Copilot for Microsoft 365 architecture.
Microsoft 365 Copilot opens immense value for your organization by seamlessly integrating AI assistance into the Microsoft 365 tools you already use, transforming them into powerful productivity resources. With flexible Microsoft Copilot licensing, businesses can scale AI capabilities to fit their needs. Let’s explore how Copilot can enhance collaboration across your organization:

Word: Elevate Your Writing to New Heights

Real-time grammar and style suggestions with detailed explanations, helping you sharpen your writing skills and produce polished, professional documents.

Excel: Unleash the Power of Your Data

Microsoft Copilot in Excel empowers users to make data-driven decisions with ease. By simply asking questions in natural language, Copilot analyzes trends, identifies outliers, and extracts valuable insights. It also simplifies complex calculations by generating formulas automatically, reducing errors, and saving time—making financial modeling, forecasting, and analysis more accessible. Additionally, Copilot streamlines data visualization by creating charts and graphs instantly, helping you communicate complex information and uncover key trends effortlessly..

PowerPoint: Craft Compelling Presentations with Ease

Microsoft Copilot streamlines presentation creation by transforming raw ideas into polished, professional slides with AI-generated layouts, themes, and imagery. It also assists with content creation, providing intelligent suggestions for text, images, and speaker notes—helping you overcome writer’s block and deliver engaging, visually compelling presentations that captivate your audience.

Outlook: Streamline Your Inbox and Maximize Efficiency

Microsoft Copilot enhances email management by summarizing lengthy threads, drafting replies, and prioritizing messages, helping you stay organized and focused. It also simplifies meeting scheduling by finding optimal times, sending invitations, and managing your calendar—eliminating the hassle of back-and-forth coordination.

Teams: Foster Collaboration and Boost Productivity

Automatically capture key points, decisions, and action items from your Teams meetings, ensuring everyone stays on track and informed.

Work together seamlessly with colleagues to co-author documents, brainstorm ideas, and receive instant feedback through real-time collaboration, accelerating project completion and fostering a culture of collaboration.

Microsoft 365 Copilot Limitations and How AlphaBOLD Can Help

While Microsoft Copilot is a groundbreaking tool with immense potential, decision-makers need to be aware of its current limitations:

  • Data Privacy: Copilot processes data under Microsoft’s strict privacy standards, ensuring your information remains secure. At AlphaBOLD, we prioritize data privacy and can help you implement best practices for using Copilot within your organization’s data governance. Our expertise in Microsoft Copilot licensing ensures that you have the right security measures for optimal usage.
  • Hallucinations: Like all large language models, Copilot can generate incorrect or nonsensical information, so reviewing and verifying its output is essential, especially for critical tasks. AlphaBOLD’s experts can assist in developing workflows to enhance accuracy and reliability. Understanding the cost of Copilot and its capabilities and limitations helps you make informed investment decisions.
  • Not a Replacement for Human Expertise: While Copilot can automate tasks and provide suggestions, it should not replace human judgment and expertise. It’s important to use Copilot to enhance work without sacrificing critical thinking. AlphaBOLD offers training and support to help your team effectively utilize Copilot while maintaining their decision-making skills. If you’re considering Microsoft Copilot Pro, we can help evaluate its features to align with your business needs.

Optimize Your Microsoft Copilot Investment

Navigating Microsoft Copilot pricing and licensing options can be complex. Let AlphaBOLD's experts help you find the perfect plan for your organization and ensure a seamless implementation.

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Business Chat: Your AI-powered Personal Assistant for Strategic Decision-Making

Business Chat takes Copilot to the next level by working across your entire Microsoft 365 data landscape. It empowers decision-makers like you with rapid information synthesis, efficient communication, and enhanced collaboration.

Business Chat acts as your personal AI assistant, distilling insights from your vast array of emails, chats, meetings, and documents, providing concise summaries and key takeaways to quickly inform your decisions. You can effortlessly compose emails, create project updates, and stay informed about key discussions, all within a single, intuitive interface.

Microsoft Copilot enables decision-makers to work smarter by rapidly synthesizing information from chats, meetings, and emails, providing a quick and comprehensive overview without the need to sift through endless data.

With Microsoft Copilot licensing, organizations can streamline communication by composing precise emails based on recent conversations or specific requests, ensuring clarity and efficiency. Copilot also simplifies project management by generating status reports, summaries, and action items, keeping stakeholders informed and aligned.

Additionally, its collaborative capabilities centralize information, fostering seamless teamwork and accelerating decision-making. Businesses leveraging Microsoft Copilot Pro can enhance their market response and pricing strategies, ensuring a competitive edge.

Beyond Microsoft 365: Empowering Your Business with Copilot's Expanded Capabilities

Microsoft’s commitment to AI-powered productivity extends beyond Microsoft 365. As a decision-maker, you can leverage Copilot’s transformative capabilities across several key areas of your business:

1. Viva Sales: Supercharge Your Sales Team

Copilot in Viva Sales empowers your sales professionals to close deals faster and build stronger customer relationships. By automating repetitive tasks and providing data-driven insights, Copilot helps your team focus on what matters most: building trust, identifying opportunities, and closing deals.

  • Key Features: Microsoft Copilot enhances customer interactions by creating personalized emails and summarizing past interactions to better prepare meetings. It also helps track engagement metrics and personalize follow-ups, making nurturing leads easier and strengthening relationships.
  • Licensing: Copilot in Viva Sales is included with Viva Sales subscriptions. Contact Microsoft or a trusted partner like AlphaBOLD for detailed pricing information tailored to your organization’s needs.

2. Power Platform: Accelerate Innovation and Automation

Copilot in Power Platform revolutionizes how you build and automate business processes. By democratizing app development with low-code tools and AI-driven insights, Copilot empowers both technical and non-technical users to create custom solutions that streamline workflows and boost efficiency.

Key Features: Microsoft Copilot accelerates innovation by generating AI-powered app ideas tailored to your business needs. With low-code app development capabilities, organizations can build custom applications quickly using intuitive drag-and-drop tools and pre-built components. Additionally, Copilot streamlines operations through workflow automation, reducing manual effort and enabling teams to focus on high-value strategic initiatives.

Copilot in Power Platform is available with select Power Platform licenses. Contact Microsoft or AlphaBOLD to learn more about the licensing options and pricing details that best suit your organization.

3. Dynamics 365: Elevate Customer Engagement and Business Processes

Copilot in Dynamics 365 brings the power of AI to your customer service, marketing, and sales operations. You can deliver personalized customer experiences, optimize marketing campaigns, and accelerate sales cycles by leveraging AI-driven insights and automation.

  • Key Features: Microsoft Copilot enhances customer service by streamlining case management, accelerating issue resolution, and enabling personalized interactions. In marketing, it generates compelling content, optimizes audience targeting, and customizes customer journeys for better engagement. Copilot automates lead nurturing for sales teams, prioritizes high-value opportunities, and accelerates deal closures.
    Additionally, Microsoft has introduced Copilot Voice and Think Deeper features, powered by OpenAI’s o1 reasoning model, offering free and unlimited access to advanced AI capabilities. While these features provide deeper insights and enhanced automation, users may experience occasional delays during peak usage or security reviews.
  • Licensing: Copilot in Dynamics 365 is available with select Dynamics 365 licenses. Contact Microsoft or AlphaBOLD for specific pricing details tailored to your deployment and existing licensing agreements.

Microsoft Security Copilot: Benefits and Pricing

Security Copilot enhances security teams’ efficiency by leveraging Microsoft’s security expertise and the power of OpenAI’s GPT-4 model. It enables organizations to identify and assess threats faster by analyzing security signals, correlating data from multiple sources, and prioritizing critical risks.

With automated workflows, Security Copilot streamlines incident investigations, offering contextual insights and guiding analysts through complex security events. It also proactively responds to threats, providing remediation strategies and generating comprehensive reports for stakeholders. Continuously learning from Microsoft’s security graph, Security Copilot evolves to detect emerging threats, refine its algorithms, and strengthen organizational defense.

How Does Microsoft Security Copilot Work?

Microsoft Security Copilot operates as an intelligent security assistant, continuously ingesting and analyzing data from sources like Microsoft Defender, Microsoft Sentinel, and third-party security tools.

By leveraging AI and machine learning, it identifies potential threats and provides contextual insights and actionable recommendations to security analysts. These insights include alert summaries, suggested response actions, and links to relevant documentation, ensuring a more efficient threat response.

Additionally, Security Copilot automates repetitive tasks, such as data gathering, report generation, and stakeholder communication, allowing security teams to focus on complex, high-priority issues. Over time, it learns and improves using Microsoft’s vast security graph, refining its algorithms to detect emerging threats and enhance overall cybersecurity resilience.

Pricing:

Microsoft Security Copilot uses a consumption-based pricing model based on Security Compute Units (SCUs).

  • SCUs: These units are provisioned per hour and billed monthly. Each SCU represents a certain amount of computing power that is used to run Copilot’s workloads.
  • Cost: The cost per SCU is $4. More information regarding pricing for Microsoft Copilot for Security can be found at this link.
  • Recommendations: Microsoft recommends provisioning 3 SCUs per hour to start exploring Security Copilot. However, the actual number of SCUs you need will depend on the size and complexity of your environment.

Strengthen your Cyber Resilience with AI

Microsoft Security Copilot's pricing model is designed for flexibility, but understanding your organization's specific needs is crucial. AlphaBOLD can help you assess your security requirements and tailor a Copilot solution that fits your budget and maximizes protection.

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What are The Estimated Costs of Microsoft Security Copilot?

You can estimate your monthly bill using the following formula:

Monthly Cost = (Number of SCUs per hour) * (Hours per day) * (Days per month) * ($4 per SCU)

For example, if you provision 3 SCUs per hour, your estimated monthly cost would be:

3 SCUs/hour * 24 hours/day * 30 days/month * $4/SCU = $8,640 per month

Note: This is just an estimate, and your actual cost may vary depending on your usage.

Additional Considerations:

  • Preview: Security Copilot is currently in limited preview, and pricing may change when it becomes generally available.
  • Cost Optimization: Microsoft provides tools to help you monitor and optimize your SCU usage to control costs.

Unlock the Full Potential of Microsoft Copilot with AlphaBOLD

Let AlphaBOLD help you transform your business with the power of AI. Contact us today to explore how Copilot can revolutionize your operations and drive greater productivity, innovation, and growth.

AlphaBOLD’s seasoned consultants can guide you through the entire Microsoft Copilot pricing and licensing process, ensuring you make informed decisions aligning with your business objectives and budget. We offer comprehensive services, including:

  • License Assessment and Optimization: We’ll analyze your current Microsoft 365 subscriptions and recommend the most cost-effective licensing options that meet your needs.
  • Implementation and Integration: We’ll handle the technical aspects of deployment, ensuring a smooth transition and seamless integration with your existing systems.
  • Training and Adoption: We’ll provide comprehensive training to your teams, empowering them to leverage Copilot’s full potential.
  • Ongoing Support and Optimization: We’ll continuously monitor and optimize your Copilot implementation to ensure you’re always getting the best possible return on your investment.

To further understand the transformative potential of Microsoft Copilot and its latest updates, especially in field service operations, we recommend reading our in-depth blog: Level the Playing Field with Copilot and Dynamics 365 Field Service.

Ready to Start your Microsoft Copilot Journey?

Don't leave the success of your Copilot implementation to chance. Partner with AlphaBOLD today for a personalized demo and discover how we can help you harness the power of AI to transform your workplace.

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Microsoft Copilot Suite: Pricing and Feature Comparison

Microsoft Copilot Suite Product Use Cases Pricing Structure Notes
Microsoft 365 Copilot
Copilot for Microsoft 365
AI assistance in Word, Excel, PowerPoint, Outlook, Teams
$30 per user per month (Monthly or Annual paid monthly)
No pay-as-you-go option
Microsoft 365 Copilot
Business Chat
Summarizing meetings, drafting emails, and project updates
Included with Microsoft 365 Copilot
Copilot for Individuals
Copilot for Individuals
AI assistance in Word, Excel, PowerPoint, Outlook, OneNote + Image Creator
$20 per user per month (Monthly only)
Requires Microsoft 365 subscription
Copilot Studio
Copilot Studio
Customize & extend Copilot capabilities
Customization for Microsoft 365 included. Building custom Copilots/GPTs: $200 per month/tenant for 25,000 messages + additional packs
No pay-as-you-go or annual paid monthly options for custom Copilots/GPTs
Dynamics 365 Copilot
Copilot for Sales
AI assistance for sales professionals
Included in Viva Sales. Contact Microsoft for Dynamics 365 Sales pricing
Pricing varies based on licensing and deployment
Dynamics 365 Copilot
Copilot for Service
AI assistance for customer service agents
Contact Microsoft for Dynamics 365 Customer Service pricing
Pricing varies based on licensing and deployment
Security Copilot
Microsoft Security Copilot
AI-powered security analyst
$4 per Security Compute Unit (SCU) per hour
Currently, in limited preview, pricing may change

Microsoft Copilot Pricing and Licensing

With its transformative potential, you might be wondering about the cost of integrating Microsoft 365 Copilot into your organization. Here’s a breakdown of the Microsoft Copilot pricing and licensing options, designed to cater to businesses of all sizes:

Enterprise (300+ seats): $30 per user per month

Small to Medium Businesses (1-299 seats): $30 per user per month

Microsoft Copilot’s licensing model offers a range of options for businesses. However, to truly harness the power of AI and achieve a seamless integration with your existing systems, partnering with a trusted advisor like AlphaBOLD can be invaluable.

Our expertise goes beyond simply acquiring licenses. We tailor Copilot’s implementation to your unique business needs, ensuring you maximize your investment. From identifying the most cost-effective licensing options to providing comprehensive training and ongoing optimization, we’re committed to maximizing the value of Copilot for your organization.

Explore Copilot's Customization and Integration

Interested in customizing Microsoft Copilot for your specific business requirements? Request a consultation to learn about Copilot’s customization options and how you can build and extend its capabilities within your existing systems.

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Conclusion

Microsoft Copilot represents a significant leap forward in AI-powered productivity, offering tools that can revolutionize how your teams work, collaborate, and innovate. Understanding the core technologies, diverse applications, and Microsoft Copilot licensing options is crucial for decision-makers leveraging this innovative solution.

By integrating Microsoft Copilot into your existing Microsoft 365 ecosystem or exploring its wider applications across sales, development, and security, you can empower your organization to work smarter, not harder.

However, navigating the complexities of Copilot implementation and licensing can be daunting. That’s where AlphaBOLD’s expertise comes in. We offer tailored solutions that go beyond simply acquiring licenses. We can help you assess your unique needs, identify the most suitable Copilot modules, optimize costs, and ensure a seamless integration process.

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