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What is Microsoft Copilot and how does it work?

by | Aug 6, 2025 | Microsoft 365

Microsoft Copilot is changing the way individuals and businesses work by integrating powerful AI directly into the tools we use every day. But what is Microsoft Copilot and how does it work across its free and paid versions? In this post, we’ll explore the differences, benefits, and use cases to help you choose the right version for your needs.

We’ve also included a comprehensive 1-hour video tutorial designed to help users understand what is Microsoft Copilot and how it works. This session walks through the free key features that come with Microsoft 365 subscriptions, demonstrates practical use cases, and offers tips on how to integrate Copilot into your daily workflow. Whether you’re new to AI-powered assistance or looking to enhance your productivity with Microsoft 365, this video provides a clear and accessible introduction tailored for business users.

Microsoft Copilot is changing the way individuals and businesses work by integrating powerful AI directly into the tools we use every day. But what is Microsoft Copilot and how does it work across its free and paid versions? In this post, we’ll explore the differences, benefits, and use cases to help you choose the right version for your needs.

We’ve also included a comprehensive 1-hour video tutorial designed to help users understand what is Microsoft Copilot and how it works. This session walks through the free key features that come with Microsoft 365 subscriptions, demonstrates practical use cases, and offers tips on how to integrate Copilot into your daily workflow. Whether you’re new to AI-powered assistance or looking to enhance your productivity with Microsoft 365, this video provides a clear and accessible introduction tailored for business users.

What is Microsoft Copilot?

Microsoft Copilot is an AI-powered assistant built on OpenAI’s GPT-4 technology. It’s designed to help users write, analyse, create, and collaborate more efficiently within Microsoft 365 apps like Word, Excel, Outlook, and Teams.
Whether you’re drafting emails, generating reports, or visualising data, Copilot can save time and improve accuracy. But how does it work differently depending on whether you’re using the free version or a paid subscription?

Free Version of Microsoft Copilot

The free version of Microsoft Copilot is available via web browsers, Windows, macOS, and mobile apps. It’s a great way to get started with AI assistance.
Features include:

  • Access to GPT-4 during non-peak hours
  • 15 daily boosts for AI image generation
  • Basic functionality in web versions of Word, Excel, and Outlook
  • Integration with Microsoft Edge and Windows 11

This version is ideal for casual users who want to explore what Microsoft Copilot is and how it works without a financial commitment.

Copilot Pro (£19.99/month)

Copilot Pro is designed for individuals who use AI regularly and want faster, more integrated experiences.
Exclusive features:

  • Priority access to GPT-4 and GPT-4 Turbo
  • 100 daily boosts for AI image generation
  • Access to Copilot in web and desktop versions of Word, Excel, Outlook, and OneNote (with Microsoft 365 Personal or Family)
  • Faster performance and more consistent results

If you’re wondering what is Microsoft Copilot and how does it work for professionals, Copilot Pro is the answer—it’s built for power users.

Copilot for Microsoft 365 (£29.99/user/month)

This enterprise-grade version is tailored for teams and organisations using Microsoft 365 Business Standard or Premium.
Advanced capabilities include:

  • Full integration with Teams, Word, Excel, PowerPoint, Outlook
  • Copilot Chat and Copilot Pages for streamlined collaboration
  • Copilot Studio for building custom AI agents
  • Enterprise-level security, compliance, and admin controls

For businesses asking what is Microsoft Copilot and how does it work in a team environment, this version delivers automation, insights, and scalability.

We offer a 1-day training course: Microsoft Copilot for Microsoft 365 Training Course . You can book as an individual on one of our public courses, or we offer a group booking rate dedicated to training for your company.

What is Microsoft Copilot and How Does It Work in Real Life?

Here are examples of tasks the paid versions can handle that the free version cannot:

Here are some powerful tasks that are exclusive to the paid versions of Microsoft Copilot:

Generate complex Excel formulas and automate data analysis
Save time by letting Copilot handle intricate calculations, pivot tables, and trend analysis with natural language prompts.

Draft professional emails with tone and style adjustments in Outlook
Copilot can tailor your message to be more formal, friendly, or persuasive—ideal for business communication.

Create full PowerPoint presentations from a simple prompt
Just describe your topic, and Copilot will build a complete slide deck with structure, content, and visuals.

Build custom workflows using Copilot Studio
For organisations, Copilot Studio allows you to create tailored AI workflows that integrate with business processes and data sources.

Collaborate in Teams with AI-powered summaries and action items
After meetings, Copilot can generate concise summaries, highlight decisions made, and suggest follow-up actions—keeping everyone aligned.

Comparison Table: Free vs Paid Versions

Feature Free Copilot Copilot Pro (£19.99/mo) Copilot for M365 (£29.99/user/mo)
GPT-4 Access Limited (non-peak) Priority access Priority access
AI Image Boosts 15/day 100/day Varies
App Integration Web + Mobile Web + Desktop* Full M365 Integration
Ideal For Casual users Power users Businesses & Teams

*Requires Microsoft 365 Personal or Family subscription.

Final Thoughts

So, what is Microsoft Copilot and how does it work for you? It depends on your needs. The free version is a great introduction, while Copilot Pro and Copilot for Microsoft 365 unlock deeper functionality for professionals and teams.
Whether you’re a freelancer, educator, or business leader, Microsoft Copilot can help you work smarter, faster, and more creatively.

Useful Links:

Access your Microsoft 365 login: Login | Microsoft 365 Copilot

Read about Microsoft 365 Copilot Security: Data, Privacy, and Security for Microsoft 365 Copilot | Microsoft Learn

Watch Microsoft Copilot advert from Microsoft: Microsoft Copilot 

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