AI tools clearly explained
Microsoft Copilot: AI in Word, Excel and Outlook.
Microsoft Copilot is the AI assistant for everyone who already works with Word, Excel, Outlook and Teams. Here you'll learn what the free chat offers, how the paid variants for private users and businesses differ and when getting started really pays off.
- Explained for beginners
- Personal and business plans sorted out
- An honest assessment
- As of September 2026
The basics
What is Microsoft Copilot?
Microsoft Copilot is Microsoft's AI assistant – in two forms: as a free chat at copilot.microsoft.com, in Windows and via the app, and as a paid integration directly inside the Microsoft 365 programs Word, Excel, Outlook, PowerPoint and Teams.
The free chat is surprisingly capable: it is based on current OpenAI models and comes with web search, voice features and image understanding. What it lacks is the integration into Word, Excel and Outlook – and special features come with limits. Copilot's real strength only shows in the paid variants: there, the AI works directly in the programs where your documents, emails and appointments already live.
Important context: at Microsoft, “Copilot” is an umbrella name for two cleanly separated worlds – the personal Microsoft 365 plans on one side and the business product “Microsoft 365 Copilot” on the other. We sort out exactly this distinction further down, because it determines what Copilot costs and what it is allowed to access.
Typical use cases
What is Microsoft Copilot best suited for?
Emails in Outlook
Summarise long email threads and have replies drafted – Copilot works right in your inbox, without copying and pasting.
Word documents
Draft proposals, reports or letters and revise existing documents – the first draft takes shape in seconds, right inside Word.
Understanding Excel
Have formulas and analyses explained instead of googling for ages – Copilot answers questions about your own spreadsheet directly in Excel.
PowerPoint drafts
A few bullet points become a first presentation draft, which you then only need to sharpen and design.
Meetings in Teams
Have meetings summarised: who said what, what was decided, which tasks remain open – directly in Teams.
AI chat in Windows
For quick questions in between: the Copilot chat is built right into Windows – one click, type your question, keep working.
To be honest: Copilot is worth it above all when your day-to-day work happens in Microsoft programs. As a pure chat tool, ChatGPT or Claude are at least equally good – and if you want to automate workflows across programs, our guide on n8n shows the better-suited approach.
The key question
What is free – and what does paying get you?
A strong chat – without Office
The free chat at copilot.microsoft.com, in Windows and via the app is surprisingly capable – it just doesn't work inside Word, Excel and Outlook:
- Chat based on current OpenAI models
- Web search for up-to-date questions
- Voice features and image understanding
- Built into Windows and available as a smartphone app
- But: no Word/Excel/Outlook integration, limits on special features
Two worlds: personal and business
With Copilot, “paid” means two different things – and the distinction matters, because price and data access are completely different:
- Personal/self-employed: Copilot is included in the Microsoft 365 plans (Personal around $10 per month, Family around $13, Premium around $20)
- The former standalone tier “Copilot Pro” has been absorbed into them
- Businesses: “Microsoft 365 Copilot” at around $30 per user per month – on top of the existing business licence
- In return, the business Copilot accesses company data: emails, files, Teams – summarising and drafting included
- AI directly in Word, Excel, Outlook, PowerPoint and Teams
Our recommendation for beginners: try the free chat first. If you notice you keep using the AI alongside Word, Outlook or Teams, the matching paid variant is the logical next step. Prices and plans change constantly – the current details at Microsoft are authoritative (as of this page: September 2026).
Getting started
From beginner to pro in four steps.
-
Try it for free
Start with the free chat at copilot.microsoft.com or directly in Windows – no subscription needed. That way you get a feel for how the AI works.
-
Choose the right world
Private or self-employed? Then a Microsoft 365 plan. A company with a business licence? Then add Microsoft 365 Copilot on top. Don't mix the two.
-
Try it on everyday tasks
Start with real tasks: have the next email summarised in Outlook, a document drafted in Word, an Excel formula explained.
-
Check & set rules
Always proofread drafts – you remain responsible. In a team, also clarify which data Copilot may process before everyone gets going.
A note on privacy: with the business Copilot, company data stays within your own Microsoft 365 tenant, according to Microsoft. Still, clarify internally which data may be processed with AI support – and don't mix private free accounts with company data.
Frequently asked questions
Frequently asked questions about Microsoft Copilot.
Is Microsoft Copilot free?
The Copilot chat is free – at copilot.microsoft.com, directly in Windows and via the app. It is based on current OpenAI models and offers web search, voice features and image understanding. What is not free is the integration into Word, Excel and Outlook; in addition, the free version has limits on special features.
What is the difference between Copilot and Microsoft 365 Copilot?
Copilot is the AI assistant for everyone – as a free chat and in the personal Microsoft 365 plans. Microsoft 365 Copilot is the business product: it costs around 30 US dollars per user per month on top of an existing Microsoft 365 business licence and, in return, can access company data such as emails, files and Teams to summarise and draft there.
How much does Copilot cost?
The plain chat costs nothing. For private users and the self-employed, Copilot is now included in the Microsoft 365 plans: Personal around 10 US dollars per month, Family around 13, Premium around 20 – the former standalone tier Copilot Pro has been absorbed into them. Businesses pay around 30 US dollars per user per month for Microsoft 365 Copilot on top of their business licence. The current prices at Microsoft are authoritative.
Does Copilot work in Word and Excel?
Yes – but only in the paid variants. With a suitable Microsoft 365 plan (personal) or Microsoft 365 Copilot (business), Copilot works directly in Word, Excel, Outlook, PowerPoint and Teams: drafting documents, explaining formulas, summarising emails. The free chat does not offer this integration.
Is Copilot worth it for small businesses?
Above all when your day-to-day work already happens in Microsoft programs – then the integration into Outlook, Word and Teams saves time every day. As a pure chat tool, ChatGPT or Claude are at least equally good. And if you want to automate workflows across programs, you should also take a look at n8n. We have dedicated guides on all three.
Further reading
These guides go well with this one.
Google Gemini
AI right inside Gmail, Docs and the Google world – the counterpart for Workspace users.
n8n
Automate workflows across programs – when an assistant inside the document is not enough.
All articles at a glance: AI Tools Guides
From trying things out to real use
Want to put AI to good use in your business?
Which tools fit your workflows, where time can be saved and what you are better off leaving alone – that is exactly where we support you. Let's sort it out in a short, no-obligation conversation.
Prefer to talk right away? Call us: 0162 4071719
