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Microsoft 365 Copilot has been a game-changer since its introduction, bringing AI-driven assistance right into your favorite Microsoft apps. But just as you were getting comfortable with the idea, Microsoft launched Copilot Chat, an innovative twist on its flagship AI experience. So what’s the difference between the two? And more importantly, which one is right for your business? Let’s dive in with an overview, break down the differences, and explore why each feature might be perfect (or not) for you.

🤖 What is Microsoft 365 Copilot?
At its core, Microsoft 365 Copilot is your AI-powered assistant embedded within apps like Word, Excel, Teams, Outlook, and more. What makes it even more powerful is that it’s grounded in your organisation’s Microsoft 365 data - such as SharePoint, Teams, Exchange emails, and OneDrive - allowing it to deliver personalised and context-aware assistance. Powered by GPT-4, it’s like having an ever-ready productivity partner, workflow optimiser, and creative assistant all rolled into one.
Copilot makes suggestions, automates repetitive tasks, drafts content, and surfaces insights - all within the apps your team already knows and loves. Need a summarised report from a 20-page document? Copilot’s got you covered. Want to turn raw data in Excel into a polished chart? Done. It’s all about empowering you to work smarter, not harder.
Microsoft 365 Copilot also introduces agent-related capabilities that allow you to create, discover, and deploy agents grounded in work data, providing a degree of automation and customisation accross the Microsoft 365 ecosystem.
🤔 What is Microsoft 365 Copilot Chat?
While Microsoft 365 Copilot is the comprehensive, AI-driven assistant embedded within your organisation’s data and core Microsoft apps, Copilot Chat is a more lightweight version that operates independently. It doesn’t integrate directly with apps like Word or Excel, nor does it leverage company-specific data, but it does offer a secure, conversational AI experience that excels in handling various tasks, making it ideal for users who need quick, accessible AI assistance, but don’t require the full depth of Copilot’s capabilities.
Copilot Chat still provides a wide range of capabilities, however, including secure file uploads for analysis, such as summarising documents and performing light data analysis, answering general queries, and generating content, and automating simple workflows via it's agent capabilities; the latter of which is a simpler offering than what Microsoft 365 Copilot's agents offer in the absence of data grounding, but still useful and supports the creation of custom agents too.
💭 Key Differences Between Copilot and Copilot Chat
Feature | Microsoft 365 Copilot | Microsoft 365 Copilot Chat |
Where It Works | Available within individual Microsoft 365 apps like Word, Excel, Teams, Outlook, and more, as well as an online centralised chat interface. | Centralised online chat interface only. |
AI Agents | Advanced agents that can introduce automations grounded in work data and apps, providing a high degree of integration and autonomy. They can leverage your organisation's data from Microsoft Graph and third-party data to perform complex tasks and workflows. | Simpler agents that offer automation capabilities but do not support integration with work data. They are designed to provide a more accessible and flexible experience, focusing on real-time queries and task automation without the depth of integration found in Microsoft 365 Copilot. |
Use Cases | Perfect for enhancing productivity across Microsoft apps like Word, Excel, Teams, and Outlook. Grounded in work data & context, it helps with tasks such as drafting documents, analysing data, managing emails, summarising meetings, and creating presentations. It's all about making your work within these apps smarter and more efficient. | Great for a more accessible, conversational AI experience. It focuses on real-time queries and basic task automation without the depth of integration found in Microsoft 365 Copilot. It's a simplified, standalone version that provides a secure chat interface for interacting with AI, designed to handle and streamline day-to-day tasks. |
Pricing | $30 (£25.94) per user per month | Free + metered consumption for agents |
If you're interested in a more thorough comparison, please find Microsoft's infographic below: -

💡 Which should you choose?
Choose Microsoft 365 Copilot if you're looking for a comprehensive AI assistant that integrates deeply with your favorite Microsoft 365 apps like Word, Excel, Teams, and Outlook. It's perfect for enhancing productivity by automating repetitive tasks, drafting content, analysing data, and providing personalised insights based on your organisation's data. Microsoft 365 Copilot also includes advanced agents that can introduce automations grounded in work data and apps, providing a high degree of integration and autonomy. If your focus is on maximizing productivity within these apps and you want a robust AI-powered assistant, Microsoft 365 Copilot is the way to go.
Choose Microsoft 365 Copilot Chat you want a more lightweight AI solution. Copilot Chat offers a secure, conversational AI experience that allows you to interact with AI agents for real-time queries and task automation. While it provides automation capabilities, it doesn't support integration with work data to the same extent as Microsoft 365 Copilot. It's ideal for businesses that want to leverage AI capabilities without a significant upfront investment. If you're looking for a simplified, standalone version that provides automation and assistance without the depth of integration found in Microsoft 365 Copilot, Copilot Chat is a great choice.
⚠️ Before you dive in: Consider this!
Here’s the thing: adopting Microsoft 365 Copilot or Copilot Chat isn’t just about flipping a switch. To ensure a smooth, secure, and successful rollout, you need to: -
Assess Readiness: Evaluate your organisation's readiness for adopting AI tools. This includes assessing the current environment, identifying potential gaps, and ensuring that your team is prepared for the changes that come with implementing Copilot and Copilot Chat.
Implement Robust Data Security Controls: Ensure that your data is protected with strong security measures. This includes setting up permissons correctly, implementing data security measures such as encryption & data loss prevention, and performing regular security audits to prevent unauthorised access and data breaches.
Plan for User Enablement and Training: Invest in training programs to help your team understand how to use Copilot and Copilot Chat effectively. This will maximize adoption and return on investment by ensuring that users are comfortable and proficient with the new tools.
🤝 Ready to transform your business?
Copilot is more than a license - it’s a strategy. At Mondo Cloud, we specialise in helping businesses like yours adopt Microsoft 365 Copilot and Copilot Chat securely and effectively. From assessing your environments readiness for AI and implementing data security controls, to running training & enablement programs, we’ve got you covered every step of the way.

📨 Get in touch to discuss how we can help you unlock the full potential of Copilot and achieve a seamless AI-powered transformation.
0800 640 4258