Microsoft Copilot

Copilot Free Tier Ratings

Last Reviewed: 2026-03-23

Public content with low sensitivity. Acceptable for marketing work.

Designer (DALL-E based) 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. Microsoft updated privacy statement in October 2025 to clarify Copilot data practices.

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

Chat history can be viewed and deleted via the Microsoft Privacy Dashboard. No fixed retention period publicly stated for consumer tier; data retained as needed for service. Manage and delete via dashboard.

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 now free with M365 — and it has enterprise protection

As of 2025, M365 Copilot Chat is included at no extra cost with eligible Microsoft 365 business and enterprise subscriptions. It includes enterprise data protection: prompts and responses are not used to train models, data stays within your M365 tenant, and admin controls apply. If your nonprofit already has M365, you have this—use it instead of consumer Copilot.

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: M365 Copilot Business SKU for smaller nonprofits

Launched December 1, 2025: Microsoft 365 Copilot Business at $21/user/month (up to 300 users) brings full app integration (Word, Excel, Outlook, Teams) at a lower price than the enterprise add-on. Promotional pricing of $18/user through June 30, 2026. No separate nonprofit discount yet, but may be added to nonprofit-priced M365 Business plans via authorized CSP partners.

Modest nonprofit discount via Tech for Social Impact

15% off the M365 Copilot add-on ($25.50/user/month vs. $30 commercial) via Microsoft's Tech for Social Impact program. M365 Business Premium first 10 seats are 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.

2026-03-18

Microsoft announced Copilot Business bundle pricing lock-in opportunity through June 30, 2026, before July 1 M365 price increases take effect. Copilot Business add-on remains $21/user/month post-July 2026. Promotional pricing ($18/user) available through June 30, 2026.

2026-02-27

February 2026 Copilot update: Copilot is now agentic 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).

2026-01-30

January 2026 update: Voice chats in Copilot app now reference personalization memory; Agent Mode available in Word and Excel; expanded Copilot Chat Insights with lower license threshold (1 license vs. 50 previously).

2025-12-04

Microsoft 365 pricing increase announced for July 1, 2026. Enterprise suites increase 5-13%, Business suites increase 12-16%, Frontline suites increase 25-33%. Standalone Copilot SKU not included—Copilot Business remains $21/user/month. Nonprofit pricing adjusts proportionally with commercial pricing per Microsoft policy.

2025-12-01

Microsoft 365 Copilot is now 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). Promotional 15% discount ($18/user) available through March 31, 2026 for nonprofits via TechSoup and through June 30, 2026 commercially. No separate nonprofit pricing yet for this SKU.

2025-11-20

Microsoft recognized as one of first organizations to achieve CSA STAR for AI Level 2 certification (ISO/IEC 42001 alignment) for Microsoft 365 Copilot. Independent third-party audit validates AI management system controls.

2025-11-18

Microsoft Ignite 2025: Security Copilot included with M365 E5 at no additional cost, with 12 new Microsoft-built agents across Defender, Entra, Intune, and Purview. Agent 365 announced as unified control plane for enterprise agents.

2025-10-31

Microsoft revamped privacy statement Copilot section to clarify data use and controls across the range of Copilot services. Removed 'Copilot Pro' references—its function now covered by M365 Copilot offerings. GPT-5 rolling out as default model in Copilot Chat.

Already Using M365

Start with M365 Copilot Chat—it's already included in your M365 subscription at no extra cost, with enterprise data protection. For deeper integration in Word, Excel, Outlook, and Teams, add M365 Copilot Business ($21/user) or M365 Copilot ($25.50/user with 15% nonprofit discount). The deep M365 integration is unmatched among AI tools.

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) may be more accessible than the full enterprise add-on.

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.

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 $18/user through June 2026) is more accessible than before.