Microsoft 365 Copilot AI Tool Pricing and Licensing: Everything You Need To Know

Microsoft 365 Copilot AI tool, like many products by Microsoft, comes with set conditions, licensing, and payment structures that organizations must meet to use these products. Microsoft 365 Copilot, another innovative product launched recently by Microsoft to help organizations and businesses streamline workflow and enhance collaboration, also comes with its set prerequisites and payment structure. There has been a lot of confusion regarding the pricing of Microsoft 365 Copilot since the update in January 2024. In this article, we give a brief overview of the pricing for Microsoft Copilot, Licensing information, and a breakdown of everything you need to know about the product. Let’s get right to it.

The Various Types of Microsoft Copilot Available

There isn’t one Copilot in the Microsoft suite as you may have discovered. There are different unique AI companions for different use cases provided by Microsoft. While all Microsoft Copilot is powered by LLM technology and integrated with various Microsoft tools, it was built with 3 different use cases in mind:

  • Copilot for Organizations: This was built for organizations putting creators, researchers, and programmers in mind giving them access to the latest generative AI tools.
  • Copilot for Individuals: This was built for Microsoft 365 customers who want to experience the power of Copilot within their subscribed Microsoft applications for personal use.
  • Copilot Pro (Individual): This was built for individuals who need access to the complete capabilities of Copilot with a premium experience.

In terms of the different types of Microsoft Copilot integrations available, we have many copilots made for home and work.
For home, we have the following Copilots:

For businesses or Organizational work, we have the following Copilots:

  • Microsoft Copilot for Azure
  • Microsoft Copilot for Microsoft 365
  • Microsoft Copilot for Sales
  • Microsoft Copilot for Services
  • Microsoft Copilot Studio
  • Microsoft Security Copilot

Microsoft 365 Copilot Prerequisites

Now we understand the different types of Microsoft Copilot, let’s focus on the prerequisites for Microsoft Copilot for Microsoft 365. Firstly, you must understand that the Copilot for Microsoft 365 only works as an add-on within a subscribed service of Microsoft. So certain prerequisites must be met before you can purchase this innovative technology.

  1. You must have a valid license for one of the following Microsoft 365 or Office 365 plans
    – Business Standard Plan
    Business Premium Plan
    – Microsoft 365 E3 & E5
    Office 365 E3 & E5
  2. An active Microsoft Entra ID subscription is needed
  3. You need the Microsoft Apps for enterprise
  4. WebSocket connections on any endpoint

These requirements must be met to deploy and access Copilot for Microsoft 365.

Microsoft 365 Copilot Pricing

Microsoft 365 copilot price is $30 per user, per month. As earlier stated, this is not a standalone license cost, it involves more than just a single license fee. You must have an active Microsoft 365 E3 or E5 license to have access to Copilot. These licenses cost $36 for E3 and $57 for E5 per user, per month. Also, these Microsoft 365 copilot pricing requires an annual commitment. Also, take note that there used to be a 300-seat minimum for licensing to access the Copilot for Microsoft 365. This was removed on the 16th of January 2024. This was to enable more organizations to embrace this innovative technology. You still need the Business Standard account ($12.50 per user per month) or the Business Premium Plan ($22 per user per month) for your organization to access the Copilot for Microsoft 365.

Does Copilot for Microsoft 365 Offer a Free Trial?

Copilot does not have a free trial for its users, it only has the paid version of $30 per user per month with an annual commitment. Although Copilot for other Microsoft products does come with a free trial for administrators, there are none for the Microsoft 365 Copilot. The tool is only available to organizations and individuals who purchase a qualifying Microsoft 365 license.

Some key reasons why Microsoft may not be offering a free trial include:

  • Copilot access requires proper licensing terms to be negotiated, even for trial use. Offering free access without restrictions could violate licensing agreements.
  • Providing open access could result in potential abuse or overuse of Copilot, straining its resources.
  • Driving adoption through existing Microsoft 365 licenses allows stronger monetization and keeps Copilot’s capabilities more exclusive.
  • Introducing free trials after launch may undermine current license sales and marketing for Copilot.

How Can Apps4Rent Help?

As a leading cloud solutions provider, Apps4Rent is well-positioned to help organizations implement and optimize Microsoft 365 Copilot. We have extensive experience helping companies leverage Microsoft’s latest technologies and can provide the following:

  • Simplifying Copilot Procurement: Our licensing specialists can help you navigate Microsoft’s licensing terms and ensure you select the right mix of Microsoft 365 plans to unlock Copilot’s capabilities.
  • Optimizing Your Microsoft 365 Environment: We can audit your existing Microsoft 365 setup and licenses to find opportunities to consolidate or upgrade plans to meet Copilot prerequisites. Our goal is to help you gain Copilot access at the most cost-effective price point.
  • Deploying and Integrating Copilot: Our engineers can handle the technical deployment of Microsoft 365 Copilot across your environment and endpoints. We’ll also integrate Copilot into your workflows, applications, and systems seamlessly.
  • Administering and Supporting Copilot: As a managed service, we can take over the ongoing administration, user provisioning, and help desk support for Microsoft 365 Copilot. This frees up your internal teams.
  • Training Your Users: We can provide end-user training resources and workshops to help your staff learn how to maximize Copilot’s capabilities for productivity. Adoption is key to realizing your ROI.


With the entry of Copilot for Microsoft 365, businesses of all sizes can benefit from the various features offered by this innovative application. Although the pricing for Microsoft Copilot was based on a 300-seat minimum for businesses, Microsoft removed the 300-seat minimum for purchase and also removed the restriction to only Microsoft 365, meaning that businesses with Office 365 can now have access to the Copilot with their subscription, supported on Microsoft 365 Business Standard or Business Premium.

Navigating the pricing for Microsoft Copilot for your business shouldn’t be a hassle. Apps4Rent is well-suited to help your business harness the best from Microsoft 365 Copilot Pricing and plans. Still have questions? Check out the FAQ section or simply reach out to us today.

FAQs on Microsoft 365 Copilot Pricing and Licensing

  1. What is Copilot for Microsoft 365?
  2. Copilot for Microsoft 365 is an innovative AI-powered add-on built to help businesses and individuals with their tasks and work within various Microsoft 365 applications

  3. How much will the Microsoft 365 Copilot AI tool cost?
  4. Copilot for Microsoft 365 costs $30 per user per month with an annual commitment.

  5. Does Copilot for Microsoft 365 offer a free trial?
  6. Copilot for Microsoft 365 does not offer a free trial. The tool is only available to organizations and individuals who purchase a qualifying Microsoft 365 license.

  7. What are the qualifying Microsoft 365 licenses to access Copilot?
  8. The qualifying licenses include:
    – Microsoft 365 E3
    – Microsoft 365 E5
    – Business Premium
    – Business Standard
    – Office 365 E3
    Office 365 E5
    Note that Copilot for Microsoft 365 is not available for frontline workers using the Microsoft 365 F3 license.

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