Microsoft Expands Free Copilot Chat to All Microsoft 365 Business Apps

Reviewed byNidhi Govil

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Microsoft introduces free Copilot Chat features to Word, Excel, PowerPoint, Outlook, and OneNote for all Microsoft 365 business users. This move brings AI-powered assistance to a wider audience while maintaining premium features for paid subscribers.

Microsoft Introduces Free Copilot Chat for Microsoft 365 Business Users

Microsoft has announced a significant expansion of its AI-powered Copilot features, making Copilot Chat freely available to all Microsoft 365 business users

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. This move brings advanced AI assistance directly into popular Office applications such as Word, Excel, PowerPoint, Outlook, and OneNote, without requiring an additional Microsoft 365 Copilot license

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Source: The Verge

Source: The Verge

Key Features of Free Copilot Chat

The new Copilot Chat integration offers several productivity-enhancing features:

  1. Content-Aware AI: Copilot Chat is designed to understand the context of the file you're working on, tailoring its responses accordingly

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  2. Sidebar Integration: Users can access Copilot Chat through a convenient sidebar within their Office apps, eliminating the need for app-switching or copy-pasting

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  3. File Reference: By typing '/' in the chat bar, users can easily reference other documents and pull summaries without opening them

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  4. Multiple Image Uploads: The chat interface now supports uploading multiple images directly, facilitating visual collaboration

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Improvements and User Experience

Microsoft has made several enhancements to improve the Copilot experience:

  • Expanded Input Box: The chat input area has been widened to accommodate longer prompts and improve editing

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  • Improved Responses: Answers are now 30% longer with clearer structure and more citations, resulting in an 11% increase in positive user ratings

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  • Unified Conversation History: This feature makes it easier for users to find and reference past conversations

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Source: Dataconomy

Source: Dataconomy

Premium Features for Copilot Subscribers

While the free version offers significant functionality, the paid Microsoft 365 Copilot license ($30 per user per month) provides additional benefits

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  • Comprehensive Data Access: Ability to reason over entire work datasets, including personal and shared documents, emails, meetings, and chats

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  • Advanced Agents: Access to specialized AI agents like Researcher and Analyst for exploring ideas and analyzing data

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  • Priority Access: Subscribers get faster response times, more consistent availability during peak usage, and priority access to features like file upload and image generation

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  • Latest Technology: Access to the most recent AI models, including GPT-5

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Business Impact and Future Plans

This rollout is part of Microsoft's strategy to integrate AI deeply into everyday workflows, making advanced assistance more accessible while maintaining premium features for licensed users

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. The company plans to bundle its sales, service, and finance Copilots into the Microsoft 365 Copilot subscription in October, potentially reducing costs for businesses heavily reliant on these AI tools

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For organizations concerned about AI integration, Microsoft has confirmed that these Copilot features can be disabled in each app

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. As the AI landscape continues to evolve, Microsoft's approach aims to balance democratizing basic AI assistance with maintaining revenue streams through premium offerings

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