Microsoft Copilot is the AI assistant built into Microsoft 365. It helps employees write, analyze, summarize, and automate tasks across Word, Excel, PowerPoint, Teams, and Outlook — using the same data they already work with every day.
In this guide, we explain what Microsoft Copilot is, what it can do in each app, what licenses are available, and how your organization can get started.
How Microsoft Copilot works
Copilot uses large language models (from OpenAI and Anthropic) combined with your organization's data through Microsoft Graph. When a user asks Copilot a question, it:
- Interprets the prompt — understands what the user needs
- Searches your data — finds relevant emails, documents, chats, and calendar items through Microsoft Graph
- Generates a response — creates text, analysis, or summaries using AI
- Respects permissions — only accesses data the user already has permission to see
This means Copilot doesn't require a separate database or training on your data. It works with your existing Microsoft 365 content from day one.
What Microsoft Copilot can do in each app
Copilot in Word
- Draft documents from a prompt or reference files
- Rewrite and adjust tone of existing text
- Summarize long documents into key points
- Generate content based on data from other Microsoft 365 files
Copilot in Excel
- Analyze data sets with natural language questions
- Create formulas, pivot tables, and charts automatically
- Highlight trends and outliers
- Generate Python scripts for advanced analysis
Copilot in PowerPoint
- Create presentations from Word documents or prompts
- Add relevant images and design layouts
- Summarize and restructure slide decks
- Generate speaker notes
Copilot in Teams
- Summarize meetings you missed with key decisions and action items
- Answer questions during meetings based on the conversation
- Draft follow-up messages and meeting notes
- Recap chat threads across channels
Copilot in Outlook
- Draft email replies matching your writing style
- Summarize long email threads
- Prioritize your inbox by urgency and relevance
- Schedule meetings based on email context
Copilot Chat (Microsoft 365 Chat)
- Search across all your Microsoft 365 data from one place
- Ask questions that span emails, documents, chats, and calendar
- Generate status updates and reports from multiple sources
- Create content based on information from different apps
Microsoft Copilot licensing: which option fits your organization?
Microsoft offers several Copilot products. The two main options for businesses are:
| Product | Price | Max users | Best for |
|---|---|---|---|
| Copilot Business | ~€19/user/month | 300 | SMBs with Business Basic, Standard, or Premium |
| Microsoft 365 Copilot | ~€27/user/month | Unlimited | Enterprises with E3 or E5 licenses |
Both products offer identical AI functionality in the apps. The difference lies in governance, compliance tooling, and user limits. See our detailed Copilot licensing comparison for a feature-by-feature breakdown.
There is also Copilot Chat, which is free for all Microsoft 365 users and provides basic AI assistance in the sidebar — but without full app integration or organizational data access.
What does Microsoft Copilot cost?
The cost of Copilot depends on your existing Microsoft 365 license. Universal Cloud offers bundle pricing that combines your Microsoft 365 license with Copilot at a discount:
- Business Basic + Copilot — starting from ~€25/user/month
- Business Standard + Copilot — starting from ~€30/user/month
- Business Premium + Copilot — starting from ~€39/user/month
Check our Copilot solution page for current bundle pricing and available promotions.
Is my organization ready for Copilot?
Before deploying Copilot, consider these readiness factors:
Data governance
Copilot can access all data a user has permission to see. This makes it essential to review your SharePoint permissions, sensitivity labels, and sharing policies before rollout. Organizations with well-structured data benefit most.
User adoption
The value of Copilot depends on how well employees use it. Microsoft's research shows that organizations with structured adoption programs see 6% higher revenue impact and 20% cost reduction compared to unstructured rollouts.
License requirements
Copilot Business requires an existing Business Basic, Standard, or Premium license. Microsoft 365 Copilot requires E3 or E5. You cannot purchase Copilot as a standalone product for use with other email or productivity platforms.
How to get started with Microsoft Copilot
1. Assess your current environment
Evaluate your Microsoft 365 tenant: which licenses do you have, how are permissions structured, and where is your data stored?
2. Choose the right Copilot license
Based on your organization size and compliance requirements, choose between Copilot Business (up to 300 users) or Microsoft 365 Copilot (enterprise).
3. Start with a pilot group
Roll out to 10-20 enthusiastic users first. Measure productivity gains and gather feedback before scaling.
4. Deploy organization-wide
With learnings from the pilot, expand to the full organization with tailored prompts and use cases per department.
Universal Cloud guides organizations through this entire process as a certified Microsoft CSP partner. From license assessment to organization-wide deployment, we ensure Copilot delivers measurable value.
Conclusion
Microsoft Copilot is the most significant addition to Microsoft 365 since Teams. It transforms how employees interact with documents, data, meetings, and email — all while working within your existing security and compliance framework.
The key to success is choosing the right license, preparing your data, and deploying with a structured adoption plan. Explore our Copilot solution page for pricing, promotions, and deployment options, or book a consultation to discuss what Copilot means for your organization.
