Copilot Chat and Copilot for Microsoft 365 Apps: What’s the Difference?

May 30, 2025

Microsoft offers two different versions of its generative AI, Copilot: Copilot Chat and the premium Copilot for Microsoft 365 apps. Both versions are designed to enhance productivity and streamline tasks, but they differ in their capabilities and compatible applications.

Copilot Chat

Copilot Chat is primarily focused on helping users through conversational interfaces by providing web-based information. Key features include:

Chat Assistance: Functionality is available through the browser, Outlook, and Teams.
Conversational Interface: Users can ask questions, request information, and receive responses in a conversational manner.
Task Management: Copilot Chat can manage tasks, set reminders, and provide updates.
Data Retrieval: Copilot is able to retrieve and summarize information from various sources.
Integration with Services: Copilot Chat integrates with chat-based platforms to offer seamless assistance.

Copilot for Microsoft 365 Apps

Copilot for Microsoft 365 apps is Microsoft’s premium Copilot product that is grounded in your organization’s Microsoft 365 systems and embedded directly within various Microsoft 365 applications. This version provides advanced assistance tailored to specific productivity tools.

Key features of Copilot for Microsoft 365 apps include:

In-App Integration: Integrated directly into applications like Word, Excel, PowerPoint, Teams and Outlook. Provides contextual assistance based on the application being used.
Enhanced meeting transcription and recording in Teams: Offers AI assistant summaries of recorded meetings.
Enhanced Productivity: Use advanced features such as document drafting, data analysis, presentation creation, and email management.
AI-Powered Recommendations: Copilot offers intelligent suggestions to improve workflow and optimize tasks within the apps.
Customization: Premium Copilot allows customization based on user preferences and organizational needs.

Pricing for Premium Copilot for Microsoft 365 Apps

Copilot for Microsoft 365 (for work) is only available through an additional Microsoft 365 license and requires an existing Business/Enterprise user license such as Business Premium or E3. The Copilot for Microsoft 365 license requires a 12-month commitment and is an additional $31.50/month per user account when paid monthly.

Choosing Your Path Forward with Microsoft's Copilot

While both versions of Copilot offer valuable assistance, Copilot Chat excels in web-based conversational interactions, whereas the premium Copilot for Microsoft 365 shines in enhancing productivity within the Microsoft 365 applications. Choosing between them depends on your specific needs and how you intend to integrate AI assistance into your workflow.

Looking for guidance on your organization’s Microsoft 365 strategy? Kite Technology offers Microsoft 365 Consulting. We even have a Microsoft MVP on staff, who stays updated on the latest and greatest Microsoft updates.

Reach out to our team to start a discussion about helping your business get the most out of Microsoft 365!