If you’ve ever stared at Microsoft’s Copilot line up and thought “what on earth is the difference between all of these?”, you’re in good company. There are actually several distinct versions, and understanding which Microsoft Copilot version you need — and whether you should be paying for it — is genuinely confusing when you’re running your own business and making these decisions yourself. In this post, I’m going to walk you through the main options, show you what’s already included in your Microsoft 365 subscription, and help you work out whether you need to spend any extra money.
The Free Version: Copilot
Let’s start with the good news. There’s a completely free version, and you don’t need a Microsoft account or any licence to use it. Just go to copilot.microsoft.com in any browser and you’re straight in.
Think of it as a research assistant that searches the web and pulls together the answers for you. Instead of trawling through multiple pages on a website, you just ask Copilot and it does the legwork. You can ask questions, draft ideas, and have a back-and-forth conversation with it.
There’s also a mobile app if you prefer to work on your phone, and if you use Microsoft Edge, Copilot is built right into the browser sidebar — handy if you’re reading an article and want to ask questions about it.
The one thing it can’t do is access your files, emails, or documents. It only knows what’s publicly available on the web, or what you choose to share with it directly. But if you’ve never used an AI tool before, this is a brilliant starting point — and it costs nothing.
Already Included: Microsoft 365 Copilot Chat
This is the version that trips almost everyone up — and honestly, Microsoft doesn’t make it very clear.
If you have a Microsoft 365 Business Basic, Business Standard, or Business Premium licence, you already have access to Copilot Chat. No extra cost. It’s just there, waiting for you.
Oh and if you have a Personal or Family license you have access as well. Though be aware that the primary license holder (i.e. the ones who pays for it) gets the best access. Other family members get Copilot in Office on the Web.
You’ll find it inside Word, PowerPoint, Outlook, and Excel on the web. I’ll be honest though — it’s not completely consistent. In the full desktop version of Excel, the Copilot button is greyed out at my licence level. And OneNote on the web doesn’t seem to have it, though OneNote desktop does. It’s worth having a look around your own apps to see what’s available to you.
So what can it actually do? It’s great for drafting content — emails, presentation slides, sections of a document — without you staring at a blank page wondering where to start. You ask, it drafts, you edit. Much less painful than it sounds.
The catch is that it won’t go hunting through your saved files or emails automatically. You’ll need to paste in or upload anything relevant you want it to work with. It’s web-grounded, which means it draws on information from the internet rather than your own business data.
For a lot of small business owners, this is actually enough.
My suggestion: Explore what you’ve already got before spending a penny on anything extra.
The Paid Upgrade: Microsoft 365 Copilot
Right, now we’re into the version most people are curious about.
At the time of writing, there’s a promotional price of around £13.80 per user per month, running until the end of March 2026, after which the standard price kicks in. One thing worth knowing — Microsoft bills annually, so the full year’s cost comes out as one payment. Worth factoring that into your budget.
The big difference with this paid version is that it works with your actual business data. It can search through your emails, access files saved in OneDrive and SharePoint, check your calendar, and look through Teams conversations — all automatically, without you having to upload anything. It genuinely knows your work.
There’s also something called agent mode being rolled out in 2026. Rather than just answering questions, Copilot actively works alongside you in documents — building, formatting, and explaining what it’s doing as it goes. You stay in control, reviewing and adjusting as it works through the task.
If you spend a lot of time in Outlook, regularly hunt for documents from months ago, or manage multiple projects at once, this could save you a significant amount of time each week. Whether it saves you enough time to justify the cost is something only you can work out — and it’s a question I’m actively asking myself too.
The Versions You Can Probably Ignore
Just quickly, because you may have heard these mentioned:
Security Copilot is aimed at security teams in large organisations. Not relevant here.
Copilot Studio is a developer tool for building custom Copilots — unless you’re technical or have very specific needs, you can move on.
Copilot for Sales and Copilot for Service are industry-specific versions that most people reading this simply don’t need.
So Where Should You Start?
Start with what you’ve already got. Seriously.
Try the free Copilot via the web, then have a proper explore of Copilot Chat within your Microsoft 365 apps. See whether that covers what you need before committing to any additional spend.
In my next post, I’ll be looking at whether the paid Microsoft 365 Copilot is actually worth the money — including a practical way to work out whether it makes financial sense for your business. Spoiler: I haven’t decided yet either.
Written with the help of Claude AI from an original transcription.
YouTube Videos
What’s the Difference Between All the Copilot Versions?
How Much Does Copilot Cost and Do I Need It? Full Version | 27 mins
What Does Copilot Actually Cost in 2026? (Free vs Paid)
Should You Pay for Microsoft Copilot in 2026? Work Out If You Need It
How Do I Actually Use Copilot Effectively?
The Secret to Good Copilot Responses (It’s Your Prompts)
6 Copilot Demos You Can Copy Right Now
Can Copilot Access My Files and Is My Data Safe?
Can Microsoft Copilot Access My Files?
Is Microsoft Copilot Safe? (Data Privacy Explained)
Other MS Copilot Posts
Microsoft Copilot Versions: Which One Do You Actually Need? (current post)
Is Microsoft Copilot Actually Worth Your Money?
Get Better Results From Free Copilot Chat With These Simple Tips
The Truth About Microsoft Copilot Security for Business Owners
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