Microsoft Launches Pay-As-You-Go 365 Copilot Chat with AI Agents for Businesses

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On Thu, 16 Jan, 12:03 AM UTC

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Microsoft introduces a new consumption-based pricing model for its AI-powered Microsoft 365 Copilot Chat, offering businesses flexible access to AI agents and productivity tools.

Microsoft Unveils Pay-As-You-Go 365 Copilot Chat

Microsoft has launched a new consumption-based pricing model for its AI-powered Microsoft 365 Copilot Chat, offering businesses a flexible alternative to the existing license-based Microsoft 365 Copilot. This move aims to make advanced AI tools more accessible and cost-effective for organizations of all sizes 12.

Key Features and Capabilities

Microsoft 365 Copilot Chat, powered by OpenAI's GPT-4 model, integrates seamlessly with familiar Microsoft 365 applications. It offers a range of AI-driven features designed to enhance productivity and streamline workflows:

  1. AI-powered assistance for tasks such as market research, meeting preparation, and content generation 4.
  2. The ability to create and manage custom AI agents for automating repetitive tasks 23.
  3. Enterprise data protection and IT controls to ensure security and compliance 2.
  4. Integration with Microsoft 365 apps, allowing users to leverage AI insights within their existing workflows 1.

Pricing Model and Accessibility

The new pay-as-you-go model offers several advantages:

  1. Consumption-based pricing, where organizations pay only for what they use 5.
  2. Each "message" costs one cent, with responses drawing on proprietary files costing 30 "messages" 5.
  3. Agent actions cost 25 "messages" per action 5.
  4. Accessible through the Microsoft 365 Copilot app for Windows, Android, and iOS, as well as via web browser 4.

AI Agents: A Game-Changer for Productivity

One of the standout features of Microsoft 365 Copilot Chat is the introduction of AI agents:

  1. Users can create custom agents using natural language in Copilot Agent Builder and Copilot Studio 3.
  2. Agents can perform tasks like fetching CRM data before meetings or accessing product information stored in SharePoint 2.
  3. IT administrators can create organization-wide agents and manage their deployment 2.

Industry Impact and Adoption

The launch of Microsoft 365 Copilot Chat represents a significant step in the adoption of AI in the workplace:

  1. It offers a lower barrier to entry compared to the full Microsoft 365 Copilot subscription 5.
  2. The flexible pricing model allows businesses to test and scale their AI usage as needed 25.
  3. Major companies like UBS and Accenture have already committed to large-scale adoption of Microsoft 365 Copilot 5.

Competitive Landscape

Microsoft's move comes amidst growing competition in the AI productivity space:

  1. Salesforce offers Agentforce with a $2 per conversation pricing model 25.
  2. Other companies like Amazon and OpenAI are also exploring various pricing models for their AI offerings 23.

As AI continues to reshape the workplace, Microsoft's latest offering demonstrates its commitment to making advanced AI tools accessible and practical for businesses of all sizes. The pay-as-you-go model for Microsoft 365 Copilot Chat could potentially accelerate AI adoption in the corporate world, enabling organizations to harness the power of AI while maintaining flexibility and cost control.

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