You’re not alone if you’ve heard coworkers discuss “Copilot” and aren’t sure which one they’re referring to. The most common cause of confusion in this market is the fact that Microsoft really has multiple Copilot solutions. After explaining that, this post goes over actual use cases, licensing fees, and how to be ready for the Microsoft Copilot certification.
- What Is Microsoft Copilot?
- The Microsoft Copilot Family, Explained
- Microsoft Copilot (Free, Consumer)
- Microsoft Copilot Pro (Individual Subscription)
- Microsoft 365 Copilot (Business/Enterprise)
- Other Copilots (Brief Mentions)
- What Is Microsoft Copilot Used For? (Core Use Cases)
- Microsoft 365 Copilot Licensing (Cost, Tiers, How It Works)
- Microsoft Copilot Certification: What It Is and How to Prepare
- Microsoft Copilot vs. Other AI Assistants (Brief, Neutral)
- Limitations to Know Before You Rely on Copilot
- Frequently Asked Questions
- Is Microsoft Copilot free?
- What’s the difference between Microsoft Copilot and Microsoft 365 Copilot?
- How much does a Microsoft 365 Copilot license cost?
- Is there a Microsoft Copilot certification?
- Can I use Copilot during a Microsoft certification exam?
- The Bottom Line
What Is Microsoft Copilot?
Microsoft Copilot is an AI assistant integrated into Microsoft products that uses simple, everyday language to help you create, search, and obtain answers. There are two primary versions: Microsoft 365 Copilot, a premium business product that operates within Word, Excel, Outlook, Teams, and PowerPoint utilizing your company’s own data, and the free consumer Copilot, which can be accessed via the web, Edge browser, or Windows. Both are covered in this handbook.
The Microsoft Copilot Family, Explained
Before delving into use cases, it’s helpful to understand what Copilot is. Even IT specialists find this unclear due to Microsoft’s naming.
Microsoft Copilot (Free, Consumer)
You can use the Bing website, the Edge browser sidebar, the Windows taskbar, or a mobile app to access this free conversation helper. It is free to use for general enquiries, writing assistance, and image creation for anyone with a Microsoft account.
Microsoft Copilot Pro (Individual Subscription)
For those who already have a Microsoft 365 Personal or Family membership, this is a paid personal upgrade. It improves performance during peak hours and integrates Copilot directly into your own Word, Excel, and PowerPoint applications.
Microsoft 365 Copilot (Business/Enterprise)
This is the version designed for professional use. Microsoft 365 Copilot’s responses are based on your company’s real data rather than just broad online knowledge since it connects to your company’s own emails, papers, chats, and meetings via something Microsoft calls Microsoft Graph. When IT buyers say “we’re rolling out Copilot,” they typically mean this product, which necessitates a separate, paid licence on top of an already-existing Microsoft 365 business plan.
Other Copilots (Brief Mentions)
Additionally, Microsoft offers specialized versions for particular tasks: Security Copilot assists security teams in looking into dangers, whereas GitHub Copilot assists developers in writing and reviewing code. We won’t go into detail here because both are distinct products with different prices; if either is relevant to you, see Microsoft’s official pages.
What Is Microsoft Copilot Used For? (Core Use Cases)
Everyday/Personal Use
Copilot’s consumer version is free and is mainly used for:
- Answering general questions, like a search engine
- Writing short forms of writing like emails or social posts
- Creating images from a description in text
- Summarizing an article or web page you are reading
- Quick calculations, planning, or brainstorming
Work Use by App (Microsoft 365 Copilot)
That’s where Microsoft 365 Copilot really shines. And it works differently in each app:
| App | What Copilot Does There |
| Word | Drafts a first version of a document from a prompt, rewrites sections for tone or length, and summarizes long files |
| Excel | Explains data trends in plain language, builds formulas from a description, and highlights patterns in a spreadsheet |
| PowerPoint | Builds a slide deck from a Word document or a short prompt, and reformats existing slides |
| Outlook | Drafts replies, summarizes long email threads, and prepares a summary before a meeting |
| Teams | Summarizes a live or past meeting, lists action items, and catches you up on a call you missed |
Business/Industry Use Cases
Microsoft 365 Copilot is used by businesses for more than just individual tasks:
- Summarizing consumer input & accelerating retail product description writing
- Technical documentation integration and streamlining, and data consolidation from various systems in manufacturing
- Professional services Producing client-ready documents faster and prepping for meetings with less manual prep work
Microsoft 365 Copilot Licensing (Cost, Tiers, How It Works)
Microsoft 365 Copilot is not sold as a standalone product. You need to have an eligible Microsoft 365 base plan, and then add a Copilot license for each user that requires it. The Microsoft 365 admin center licenses people, not devices.
Pricing has changed a few times recently and is based on the size of your business, so please consider the below as a general guide and always check Microsoft’s official pricing page for the latest numbers before you budget.
| Plan/Tier | What’s Included | Who It’s For |
| Copilot Chat | A free, web-grounded assistant included with eligible Microsoft 365 plans; does not access internal company files | Any employee wanting to try Copilot before a paid rollout |
| Microsoft 365 Copilot Business | Full Copilot in Word, Excel, PowerPoint, Outlook, and Teams, grounded in company data; requires a Business Basic, Standard, or Premium base plan | Small and medium-sized businesses (up to 300 users) |
| Microsoft 365 Copilot (Enterprise add-on) | Everything in Business, plus deeper enterprise data connections, compliance support, and access to advanced Copilot agents; requires an E3 or E5 base plan | Larger organizations with no seat limit |
| Copilot Pro | Copilot inside personal Word, Excel, and PowerPoint apps for individual subscribers | Freelancers and individuals with a personal Microsoft 365 subscription |
Before you budget: Copilot is always an add-on cost in addition to your existing Microsoft 365 subscription; prices vary depending on monthly vs annual billing; and larger organizations can often negotiate volume discounts. For an exact quote, you should check current rates directly with Microsoft or a licensing partner.
Microsoft Copilot Certification: What It Is and How to Prepare
If you searched for “Microsoft Copilot certification questions LinkedIn,” you are probably looking at one of two different things and it is a good idea to know which one you actually need.
The Microsoft 365 Copilot and Agent Administration Fundamentals (AB-900) is an official Microsoft certification exam. This is for IT admins who manage Copilot licensing, security, and governance within an organization, not for end users who just want to use Copilot for writing tasks. The exam focuses on Microsoft 365 admin fundamentals, data protection, and configuring and monitoring Copilot and AI agents.
LinkedIn Learning’s Copilot skill assessments and courses offer a lightweight and separate alternative. These are short courses and quizzes that allow you to earn a certificate of completion or a skill badge on your LinkedIn profile. These can be useful to demonstrate general familiarity with Copilot rather than deep administrative expertise.
If you are studying for either one, we do not publish exam questions or answers here. Microsoft’s exam policies prohibit sharing verified test content, and doing so would’n’t actually help you learn the material. Try our dedicated Microsoft Copilot Certification Practice Questions guide for a compliant way to test your knowledge, or start with Microsoft’s own official AB-900 study guide.
Microsoft Copilot vs. Other AI Assistants (Brief, Neutral)
Microsoft Copilot is not the only AI assistant available. Here is a quick, neutral comparison:
| Feature | Microsoft Copilot | ChatGPT | Google Gemini |
| Best known for | Deep integration inside Microsoft 365 apps | Broad general use and plugin ecosystem | Integration with Google Docs, Gmail, and Search |
| Free version | Yes | Yes | Yes |
| Business version | Microsoft 365 Copilot (paid add-on) | ChatGPT Enterprise/Team | Gemini for Google Workspace |
Usually the right choice depends on what productivity suite your organization uses day in and day out.
Limitations to Know Before You Rely on Copilot
Copilot is a useful tool, but it’s not perfect and there are a few things worth keeping in mind:
- “All important output should always be reviewed. Copilot can misinterpret a request or generate something incorrect, so treat its drafts as a starting point, not a final answer.
- Microsoft 365 Copilot works best when your data is clean and well-structured. If your company’s data and permissions are a mess, then Copilot’s answers will be a mess.
- Data & privacy issues for enterprise use. Before rollout, proper access restrictions need to be in place, as Microsoft 365 Copilot only draws from data the requesting user already has permission to see.
Frequently Asked Questions
Is Microsoft Copilot free?
Microsoft Copilot is free to use via the web, Edge browser or Windows in its basic, consumer version. The business version, Microsoft 365 Copilot, is a paid license.
What’s the difference between Microsoft Copilot and Microsoft 365 Copilot?
Microsoft Copilot – assistant for general use (free for consumers). Microsoft 365 Copilot is a separate, paid-for product for businesses that connects to your organization’s own emails, files and meetings inside Word, Excel, Outlook and Teams.
How much does a Microsoft 365 Copilot license cost?
Pricing varies based on the size of your organization and the Microsoft 365 plan, and it’s subject to change periodically so check Microsoft’s official pricing page for the current rate before budgeting.
Is there a Microsoft Copilot certification?
Yes. Microsoft offers Exam AB-900 (Microsoft 365 Copilot and Agent Administration Fundamentals) for IT professionals and LinkedIn Learning offers separate, lighter Copilot skill courses and assessments for general users.
Can I use Copilot during a Microsoft certification exam?
No. Microsoft certification exams like AB-900 do not allow the use of Copilot or any other AI tool during the exam. You’re supposed to answer from your own knowledge.
The Bottom Line
Microsoft Copilot offers a whole family of tools, from a free general chat assistant to a paid, deeply integrated business product inside Word, Excel and Teams. The first step to using it effectively is knowing which one you’re talking about, and if you’re looking at it for your team, check out our more in-depth guides on Microsoft 365 Copilot pricing and how it compares to ChatGPT and Gemini.
