Microsoft Copilot

What Microsoft Copilot does

Microsoft Copilot is an AI-powered productivity assistant operated by Microsoft Corporation (NASDAQ: MSFT) and embedded across the Microsoft 365 suite — Word, Excel, PowerPoint, Outlook, Teams, OneNote, and OneDrive — along with adjacent consumer surfaces. It is built on Microsoft's foundation models and the Microsoft Graph data layer, enabling context-aware drafting, summarization, content generation, data analysis, knowledge retrieval, and multi-step workflow execution across an organization's documents, emails, and calendars. The product family spans free Copilot Chat, consumer/SMB Microsoft 365 Premium at $19.99/month, the enterprise Microsoft 365 Copilot add-on at $30/user/month, the new E7 Frontier Suite at $99/user/month, and Copilot Studio for custom AI agent development with credit-based consumption billing.

The business model is a per-seat subscription add-on to qualifying Microsoft 365 base licenses, plus a usage-based layer for Copilot Studio agents. Go-to-market leverages Microsoft's enterprise field sales organization, Cloud Solution Provider channel, and in-product M365 promotion, targeting large enterprises, healthcare providers, government bodies, IT services firms, and SMBs. Customers include 90%+ of the Fortune 500, NHS England (505,000 staff), Infosys, TCS, and Wipro (collectively 300,000+ seats), with 20+ million paid seats disclosed against a 450+ million commercial M365 installed base. Customer outcomes cited include 14-26 minutes saved per user per day, a 116% ROI per Forrester, and $19.7M NPV per composite organization, though only 35.8% of licensed employees actively use the tool and 30-40% of paid seats go unused.

Name

Microsoft Copilot

Legal name

Microsoft Corporation

Website

https://microsoft.com

Company type

Public

Founded year

1975

Operating status

Operating

Short description

Microsoft Copilot is an AI-powered assistant sold by Microsoft (NASDAQ: MSFT) as a per-seat add-on to Microsoft 365, helping enterprises and consumers draft, summarize, analyze, and automate work across Word, Excel, PowerPoint, Outlook, and Teams.

Ownership category

akta.pro rank

Product category

Enterprise AI Productivity Software

NAICS

Software Publishers (513210), Computer Systems Design and Related Services (54151), Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (518)

SIC

Services-Computer Programming, Data Processing, Etc. (7370), Services-Computer Integrated Systems Design (7373)

akta.pro primary industry

Generative AI & LLM Solutions Services (RAG, Agents, Copilots) (BPAEAHAG)

akta.pro secondary industries

MLOps/LLMOps & Model Lifecycle Management Services (BPAEAHAH), Model Development & Training Platforms (AutoML, Notebooks, Feature Stores) (HDAEANAB), AI/ML Solution Integration & MLOps Enablement (BPAEAAAJ)

Keywords

• AI productivity assistant
• Enterprise AI copilot
• Generative AI workplace
• Autonomous AI agents
• Microsoft 365 integration

Headquarters

HQ city

Redmond

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Software

Cost components

Technology or R&D, Personnel, Infrastructure, Marketing or Sales, Operations

Revenue model

1. Microsoft 365 Copilot Add-on Subscription: Per-user monthly subscription add-on to qualifying Microsoft 365 base licenses (E3, E5, Business Standard, Business Premium). Adds $30/user/month to existing M365 subscription costs, representing 40-100% increase depending on existing plan tier.
2. Microsoft 365 Premium: Replacement for standalone Copilot Pro at $19.99/month, bundling Copilot capabilities with Microsoft 365 subscription for consumers and small businesses.
3. Microsoft 365 E7 Frontier Suite: New enterprise tier at $99/user/month, representing premium pricing for advanced AI capabilities and frontier features.
4. Copilot Studio Credit-Based Consumption: Credit-based consumption billing for deploying custom agents built with Copilot Studio, separate from base Copilot license.
5. Agentic AI Services: Revenue from agentic AI services as alternative monetization strategy, with 160,000 organizations creating over 400,000 custom agents via Copilot Studio in Q1 FY2026.

Pricing tiers

Go-to-market motion3 records

Distribution channels4 records

Marketing channels6 records

Core offering

Microsoft Copilot is an AI-powered assistant embedded across the Microsoft 365 ecosystem that leverages large language models to automate drafting, summarization, data analysis, meeting management, and multi-step workflows within Word, Excel, PowerPoint, Outlook, Teams, and OneNote. It is sold primarily as a $30/user/month add-on subscription to qualifying Microsoft 365 enterprise licenses, with consumer/SMB tiers available through Microsoft 365 Premium, and a separate Copilot Studio platform for building custom autonomous agents on a credit-based consumption model.

Product overview

Microsoft Copilot is an AI-powered productivity assistant offered as an integrated feature across Microsoft's product ecosystem. The flagship product, Microsoft 365 Copilot, is deeply integrated into Microsoft 365 applications (Word, Excel, PowerPoint, Outlook, Teams, OneDrive) and leverages Microsoft Graph for organizational data access. The product family includes free Copilot Chat, premium subscription tiers (Microsoft 365 Premium at $19.99/month, E7 Frontier Suite at $99/user/month), and Copilot Studio for building custom autonomous agents. Copilot uses large language models to automate repetitive office tasks, generate content, synthesize knowledge, and execute multi-step workflows, positioning it as a central AI layer across Microsoft's enterprise productivity stack.

Differentiator

Problem solved

Functional benefit

Brands

• Copilot Studio: Platform enabling organizations to create custom AI agents with credit-based consumption billing
• Microsoft 365 Copilot
• Copilot Pro
• Microsoft Copilot

Products and services

• Microsoft 365 Copilot AI-powered assistant integrated across Microsoft 365 applications including Word, Excel, PowerPoint, Outlook, Teams, and OneDrive, designed to automate repetitive office tasks, generate content, synthesize knowledge, and provide intelligent insights within the Microsoft 365 ecosystem. Sold as an enterprise add-on subscription.
• Microsoft Copilot Studio Platform for building custom AI agents with credit-based consumption billing, enabling organizations to create tailored AI workflows and autonomous agents for specialized business processes.
• Microsoft 365 Premium Consumer and small business subscription bundle that replaced Copilot Pro, providing AI-powered Copilot capabilities integrated with Microsoft 365 apps for individuals and SMBs at $19.99/month.
• Microsoft 365 E7 Frontier Suite Premium enterprise tier at $99/user/month providing advanced AI capabilities and frontier features for large organizations requiring comprehensive AI productivity tools.
• Copilot Chat Free conversational AI chat interface providing basic AI assistance without paid subscription requirements, available to general users as a freemium entry point to the Copilot family.
• Microsoft 365 Copilot AI Agents (Researcher and Analyst) Autonomous AI agents integrated into Microsoft Teams that can synthesize data, generate insights, and execute multi-step workflows across internal and third-party platforms. Described by CEO Satya Nadella as the biggest update since Teams launched.

Quantifiable outcome

• 14-26 minutes saved per day per user
• +4 more outcomes

Named customers6 records

Segments5 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability9 records

Feature5 records

Partnerships

Six partnerships are on record, tiered core, flagship and major.

• XerocoreTechnology or Integration · 9 July 2026Xero has integrated Microsoft 365 Copilot into its JAX platform for small business finance, offering automated bookkeeping, compliance, document capture, bank reconciliation, and cash flow management. This integration reflects the broader trend of embedding AI into day-to-day accounting workflows.
• NHS EnglandflagshipImplementation/ SI/ Consulting Partner · 8 June 2026NHS England is rolling out Microsoft 365 Copilot to 505,000 clinicians and support staff across healthcare services by October 2026. This follows the largest AI trial of its kind in global healthcare involving 30,000 NHS workers, with the AI tool saving staff an average of 43 minutes per day. The deployment covers administrative tasks including drafting letters, data analysis, discharge planning, rota management, and meeting administration.
• InfosysmajorImplementation/ SI/ Consulting PartnerIndian IT firm Infosys is rolling out Microsoft Copilot to over 100,000 employees as part of enterprise AI adoption initiative.
• TCS (Tata Consultancy Services)majorImplementation/ SI/ Consulting PartnerIndian IT firm TCS is rolling out Microsoft Copilot to over 100,000 employees as part of enterprise AI adoption initiative.
• WipromajorImplementation/ SI/ Consulting PartnerIndian IT firm Wipro is rolling out Microsoft Copilot to over 100,000 employees as part of enterprise AI adoption initiative.
• Anthropic ClaudecoreTechnology or IntegrationXero's expanded integrations include Anthropic's Claude alongside Microsoft 365 Copilot, providing multiple AI options for small business finance automation in the JAX platform.

Scale indicators14 records

Recent moves6 records

Expansion highlights6 records

Market position

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/microsoft
• GitHubgithub.com/microsoft
• YouTubeyoutube.com/user/MicrosoftResearch
• Facebookfacebook.com/Microsoft
• LinkedInlinkedin.com/company/microsoft

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Microsoft Copilot