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Microsoft 365 Copilot licensing

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Microsoft 365 Copilot licensing

Microsoft 365 Copilot licensing without the marketing: eligible SKUs, how the add-on works, the free and paid Copilot Chat tiers, and the trade-offs.

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-copilot-licensing

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01

Does Microsoft 365 E5 include Copilot?

No. E5 includes Entra ID P2 and the full compliance and Defender stacks, but Microsoft 365 Copilot is a separate add-on on every plan — Business and Enterprise alike. Nothing you buy in the base SKU catalogue includes i…

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-copilot-licensing

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02

What is the difference between Microsoft 365 Copilot and Copilot Chat?

Copilot Chat is the free chat surface that grounds on the open web — no access to your files, email, or Teams messages. Microsoft 365 Copilot is the paid add-on that puts Copilot inside Word, Excel, PowerPoint, Outlook,…

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-copilot-licensing

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03

What does Microsoft 365 Copilot cost?

The list price is $30 per user per month on top of an eligible Microsoft 365 licence. For a 500-user tenant that is $180,000 a year, which is why most organisations deploy free Copilot Chat to everyone and the full lice…

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-copilot-licensing

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04

Which Microsoft 365 plans are eligible for Copilot?

Enterprise E3 and E5, Office 365 E3 and E5, Business Basic, Standard, and Premium, the A3/A5 faculty SKUs, and the F1/F3 frontline plans (limited to what those SKUs entitle). Not eligible: standalone Exchange Online, Mi…

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-copilot-licensing

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05

Should we buy Copilot Pro for our organisation?

No. Copilot Pro is the consumer product for personal Microsoft accounts — it does not integrate with the tenant, respect enterprise data protection at tenant level, or access work data. For organisations the answer is M…

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-copilot-licensing

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06

Give everyone free chat with enterprise data protection

Buy: Copilot Chat (included) · Not this: Microsoft 365 Copilot

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-copilot-licensing

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07

Ground Copilot on tenant email, files, chats, meetings

Buy: Microsoft 365 Copilot ($30/user) · Not this: Copilot Pro

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-copilot-licensing

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