Microsoft Copilot

Copilot Free Tier Ratings

Last Reviewed: 2026-07-14

Public content with low sensitivity. Acceptable for marketing work.

Designer (image generation) included with free tier boosts.

Web-grounded research for public information queries.

Safe for public-facing educational materials.

Safe if you opt out of training in settings AND avoid specific financial details.

Safe only for public content without PII.

Yes (opt-out available)

Consumer Copilot at copilot.microsoft.com may use conversation data to train generative AI models in certain markets. Opt-out available in settings. Default model is now GPT-5 (updated 2026).

Yes

User can toggle training opt-out in privacy settings. Opt-out only affects future data. Available in product settings and Microsoft Privacy Dashboard.

Possible

Automated and human review for safety and abuse prevention. Consumer tier has no contractual restriction on human review.

User-managed (up to 18 months)

Chat history can be viewed and deleted via the Microsoft Privacy Dashboard. Microsoft support documentation (updated May 2026) confirms conversation history is retained for up to 18 months by default for signed-in consumer Copilot users; users can delete individual items or all history at any time.

Consumer grade

Basic encryption in transit and at rest. No enterprise certifications or compliance controls. Not covered by Microsoft's commercial data processing agreements.

Copilot Chat is free with M365 — but in-app access now depends on your organization's size

M365 Copilot Chat is included at no extra cost with eligible Microsoft 365 business and enterprise subscriptions, with enterprise data protection. However, effective April/May 2026, Microsoft restricted the in-app experience inside Word, Excel, PowerPoint, and OneNote for unlicensed users: organizations with 2,000+ M365 seats lost this entirely (relabeled 'Copilot Chat (Basic)', web/Outlook only), while organizations under 2,000 seats (nearly all nonprofits) keep in-app access but under new rate-limited 'standard access.' Licensed M365 Copilot users are unaffected and now see the label 'M365 Copilot (Premium).'

Copilot Pro is NOT enterprise

Despite costing $20/month, Copilot Pro uses consumer data policies. Your chats may train models unless you opt out. For organizational work, M365 Copilot Chat (free) or M365 Copilot Business ($21/user) is required. Microsoft removed 'Copilot Pro' branding from its privacy statement in October 2025.

New: Copilot Cowork — an agentic execution layer with usage-based billing

Copilot Cowork reached general availability worldwide on June 16, 2026, after a Frontier preview. Unlike chat-based Copilot, Cowork completes multi-step tasks end-to-end (planning, executing across apps and tools, returning finished results) rather than just drafting or suggesting. It requires an existing M365 Copilot license and bills separately via usage-based Copilot Credits, so nonprofits adopting it should set admin spending limits and monitor the Cost Management Dashboard to avoid unexpected costs. Cowork runs primarily on Anthropic Claude models (Opus 4.8, Sonnet 5) within the M365 enterprise data protection boundary.

Multi-model choice: GPT-5 default, Claude available

As of 2026, Microsoft 365 Copilot defaults to GPT-5 but offers Anthropic Claude models as an admin-controlled additional option in Copilot Chat, Word, and Cowork. Third-party models undergo Microsoft's supplier security and privacy review before integration, and the same enterprise no-training guarantee applies regardless of which model is selected. Admins can enable or disable third-party models tenant-wide.

M365 Copilot achieved ISO 42001 recertification with a clean second-year audit

Microsoft 365 Copilot and Copilot Chat were recertified to ISO/IEC 42001:2023 (AI management systems) in May 2026 for the second consecutive year, with zero non-conformities and zero improvement observations in the March 2026 audit. The certified scope now also includes Copilot Studio. This is paired with CSA STAR for AI Level 2 certification, making Microsoft's AI governance one of the more independently verified in the industry.

Modest nonprofit discount via Tech for Social Impact, confirmed unaffected by July 2026 price increases

15% off the M365 Copilot add-on ($25.50/user/month vs. $30 commercial) via Microsoft's Tech for Social Impact program. This price was explicitly excluded from the July 1, 2026 M365 suite price increases (which raised underlying non-Copilot plan prices 5-33%), so nonprofits already on M365 Copilot see no increase to the Copilot line item itself. M365 Business Premium first 10 seats remain free for eligible nonprofits. Less generous than Claude (75%) or Google Workspace (free), but deep M365 integration may justify the cost for committed Microsoft organizations.

HIPAA requires configuration

M365 Copilot can be HIPAA compliant, but it's not automatic. You must disable web search for PHI workloads, execute a BAA, and configure DLP policies. GCC High (GA December 2025) provides the highest compliance level including FedRAMP High. Consumer Copilot (Free/Pro) is never HIPAA compliant.

Respects your permissions

M365 Copilot inherits your existing sensitivity labels, retention policies, and access controls. It can only access data the user can already access. This applies to M365 Copilot Chat, M365 Copilot Business, and M365 Copilot enterprise tiers.

2026-06-16

Copilot Cowork reached general availability worldwide after a Frontier program preview (March 30–June 16, 2026). Cowork is an agentic 'execution layer' that completes long-running, multi-step tasks end-to-end across M365 apps and third-party tools/websites (via Edge), rather than just drafting or suggesting. Requires an M365 Copilot license; billed separately on usage-based Copilot Credits. Runs on Anthropic Claude models (Opus 4.8, Sonnet 5 at GA; Fable 5 in preview, off by default and requiring data retention when enabled). Available on mobile (iOS/Android). Admins get a Cost Management Dashboard and can set per-user/per-group spending limits.

2026-05-28

Microsoft introduced a redesigned Microsoft 365 Copilot UI and in-app workflows across Word, Excel, PowerPoint, and Outlook, reorganizing navigation, conversation history, and agent access into a unified 'operation layer' overlaid on documents rather than a separate chat window.

2026-05-27

Microsoft 365 Copilot and Copilot Chat achieved ISO/IEC 42001:2023 recertification for the second consecutive year (first certified March 2025; recertification audit conducted March 2026 with zero non-conformities and zero improvement observations). Certified AI management system scope expanded to include Copilot Studio. CSA STAR for AI Level 2 certification reaffirmed alongside ISO 42001.

2026-04-15

Microsoft restricted free/unlicensed 'Copilot Chat' access inside Word, Excel, PowerPoint, and OneNote. Organizations with 2,000+ M365 seats lost in-app Copilot in those four apps entirely for unlicensed users (relabeled 'Copilot Chat (Basic)'; Outlook and the standalone M365 Copilot app unaffected). Organizations under 2,000 seats (nearly all nonprofits) keep in-app access, relabeled 'M365 Copilot (Basic)', but under new rate-limited 'standard access' subject to service capacity. Licensed users see 'M365 Copilot (Premium)' with no changes. Some reporting indicates enforcement for certain tenants was rescheduled to May 16, 2026.

2026-03-30

Copilot Cowork entered the Frontier early-access program (following a limited Research Preview announced March 9, 2026), alongside Wave 3 of Microsoft 365 Copilot: expanded model diversity (Claude available in mainline Copilot Chat alongside next-gen OpenAI models), Researcher agent 'Critique' and 'Council' features for multi-model comparison, and the Microsoft 365 E7 Frontier Worker Suite ($99/user/month, available May 1, 2026, bundling E5 + Copilot + Agent 365 + Entra Suite).

2026-03-18

Microsoft announced Copilot Business bundle pricing lock-in opportunity through June 30, 2026 (later extended through December 31, 2026), before July 1 M365 price increases took effect. Copilot Business add-on remains $21/user/month post-July 2026; standalone Copilot SKUs excluded from the broader M365 price increase.

2026-02-27

February 2026 Copilot update: agentic capabilities in PowerPoint on the Web; meeting scheduling directly from email in Outlook; Copilot edits documents by default in Word; Agents in OneDrive; Federated Copilot connectors in Public Preview (Canva, HubSpot, Notion, Google Calendar, and more).

2025-12-04

Microsoft 365 pricing increase announced for July 1, 2026 (took effect as scheduled). Enterprise suites increased 5-13%, Business suites increased 12-23%, Frontline suites increased 25-43%. Standalone Copilot SKUs excluded—Copilot Business remains $21/user/month and M365 Copilot nonprofit pricing remains $25.50/user/month. Nonprofit pricing for non-Copilot M365 suites adjusted proportionally (60-75% discount band maintained).

2025-12-01

Microsoft 365 Copilot became generally available in GCC High, meeting FedRAMP High, DFARS, ITAR, and CMMC requirements. All data remains in U.S.-based data centers managed by screened U.S. personnel. Web grounding is OFF by default in GCC High.

2025-12-01

New M365 Copilot Business SKU launched at $21/user/month (up to 300 users). As of July 2026, still no separate nonprofit pricing for this SKU; promotional discount pricing extended multiple times, now through December 31, 2026.

Already Using M365

Start with M365 Copilot Chat—it's already included in your M365 subscription at no extra cost, with enterprise data protection. Since most nonprofits have far fewer than 2,000 M365 seats, you keep in-app access in Word, Excel, PowerPoint, and OneNote, though now under Microsoft's 'standard access' rate limiting introduced in April/May 2026. For guaranteed full-speed access, deeper integration, multi-model choice (GPT-5 or Claude), and Cowork's agentic task execution, add M365 Copilot Business ($21/user) or M365 Copilot ($25.50/user with 15% nonprofit discount, unaffected by the July 2026 price increases). The deep M365 integration remains unmatched among AI tools, but budget separately for Cowork's usage-based credits if you adopt it.

Not Yet On M365

Consider whether M365 is the right foundation for your organization first. If you're Google-native, Gemini in Workspace for Nonprofits is free with enterprise protection. M365 Copilot only makes sense if you're committed to the Microsoft ecosystem. If budget is tight, the M365 Copilot Business SKU at $21/user (up to 300 users, promotional pricing through Dec 2026) may be more accessible than the full enterprise add-on, though it still lacks a dedicated nonprofit discount as of July 2026.

For health data or vulnerable populations

M365 Copilot Enterprise can be HIPAA compliant with proper configuration: disable web search for PHI workloads, execute BAA, configure DLP policies. GCC High (GA December 2025) provides the highest compliance level. Consumer Copilot (Free/Pro) is never appropriate for PHI. M365 Copilot Chat (free with M365) is also BAA-eligible but verify coverage for your specific use cases and confirm your in-app access tier (Basic vs. Premium) given the April/May 2026 changes.

Budget Constrained

At $21-25.50/user/month, M365 Copilot is expensive compared to free alternatives. However, M365 Copilot Chat is now free with your existing M365 subscription and includes enterprise data protection—use it as your default AI chat tool. If you need deeper app integration, M365 Copilot Business at $21/user (promotional pricing now extended through December 2026) is more accessible than before. Be cautious about enabling Cowork without setting spending limits, since its usage-based billing can add unpredictable costs on top of your per-user license.