Microsoft 365 Copilot Chat for Enterprise Launches with Pay-as-You-Go AI Agents

Powered by GPT-4o, Microsoft's New AI Chat Solution Offers Flexible Pricing

AI agent usage in Copilot Chat starts at just 1 cent (approximately Rs. 0.86) per message.

Key Highlights

• A standalone subscription separate from the Microsoft 365 Copilot plan
• Copilot Chat lacks work groundedness capabilities
• Excludes Copilot assistant features

Microsoft has unveiled its latest enterprise-focused offering, Microsoft 365 Copilot Chat, a subscription plan designed to provide businesses with flexible access to AI-powered agents. Launched on Wednesday, this new service is part of the tech giant's broader strategy to expand its AI offerings to enterprises and individuals alike. Unlike traditional fixed-fee models, the Copilot Chat subscription operates on a pay-as-you-go basis, allowing businesses to scale their AI usage according to their needs.

What is Microsoft 365 Copilot Chat?

The new subscription plan, now available to enterprises, serves as a streamlined version of the existing Microsoft 365 Copilot plan. Priced at $30 (approximately Rs. 2,600) per person per month, the full Copilot plan offers a comprehensive suite of AI features. In contrast, the Copilot Chat plan provides a more cost-effective entry point for businesses hesitant to commit to higher upfront costs.

This flexible pricing model is particularly appealing to large enterprises that may be cautious about adopting AI tools for their entire workforce. By opting for the pay-as-you-go model, businesses can experiment with the service, monitor usage, and determine its suitability for their operations.

Features and Limitations

Microsoft is offering free access to Copilot Chat for enterprises as part of the subscription. However, the AI chatbot is limited to web-grounded responses, meaning it only generates answers verified by online sources. Notably, it does not support work groundedness, which would allow the chatbot to access Microsoft Graph or third-party data via Graph connectors.

This marks the second subscription tier from Microsoft that includes access to AI agents. While the 365 Copilot plan also offers metered payments for autonomous agent actions, the Copilot Chat subscription charges for all work data-based actions.

Pricing Structure Explained

In an interview with The Verge, Jared Spataro, Microsoft's CMO of AI at Work, clarified the pricing model for AI agent usage. The company uses "messages" as the unit of measurement, with each message costing 1 cent (approximately Rs. 0.86). A message represents a response generated by the AI agent, though it remains unclear whether the length or formatting of the response affects the cost.

Here’s a breakdown of the pricing:

• Web-grounded responses: Free (0 messages)
• Standard responses: 1 message
• Generated responses: 2 messages
• Responses using Microsoft Graph data: 30 messages
• Autonomous actions: 25 messages per action

Real-World Example

Consider a medium-sized enterprise with 100-1,000 employees. If the business uses Copilot Chat to generate 5,000 standard responses, 3,000 responses requiring data from company policies, and performs 4,000 automation tasks in a month, the total cost would amount to $2,000 (approximately Rs. 1,72,950). This scenario reflects moderate usage for such an organization.

Microsoft's Copilot Chat is poised to revolutionize how enterprises interact with AI, offering a scalable and cost-effective solution for businesses exploring AI integration.