Microsoft has introduced Copilot Chat, a new service that allows commercial Microsoft 365 users to utilize pay-per-use AI assistants alongside their free chat experience. This service comes equipped with several useful features such as the OpenAI’s GPT-4o model for secure and seamless interaction with the AI tool, automated agents for handling routine tasks, and IT controls like enterprise data protection and agent management.
In simpler terms, Microsoft is rebranding and expanding its free service called Copilot for businesses within Microsoft 365, which previously only allowed for creating agents at a monthly cost of $30. This move seems to be an effort by Microsoft to encourage more users to utilize their AI services.
When discussing Copilot Chat with The Verge, Microsoft’s Workplace AI Chief Marketing Officer, Jared Spataro, pointed out:
This AI chat is completely free and secure, powered by GPT. It allows you to upload files just like other services, but we believe it surpasses the competition even at this level.
According to Microsoft’s blog post written by Mary Jo Foley, the new service will only be accessible for those who sign in using their Entra ID accounts, much like how you access Bing Chat Enterprise. To clarify, Microsoft made changes to Bing Chat Enterprise and now includes Enterprise Data Protection (EDP), which stores prompts and responses within the Microsoft 365 service limits, ensuring they don’t leave the system.
Individuals with Entra IDs can utilize the complimentary version of Microsoft 365 Copilot Chat to generate AI agents. Yet, to establish these agents, they need to arrange for Pay-As-You-Go billing and employ Copilot Studio’s metering in Azure.
But Copilot Chat’s pricing isn’t that simple
In simpler terms, the metering system in Copilot Studio operates based on messages. Standard responses to questions without utilizing advanced AI technology are counted as a single message. However, when advanced AI capabilities are employed, it is considered as two messages.
It’s worth noting that responses involving complex models and possibly interacting with Microsoft Graph will amount to approximately 30 messages. Jared Spataro further explained that each message equates to a penny, meaning you can think of it as 1 cent, 2 cents, or 30 cents in total.
Microsoft’s CMO of AI, Jared Spataro, further broke down the service’s pricing model as follows:
A common query I encounter is, “Does this mean I’m giving you unlimited funds?” However, the method of managing the meters’ rotation offers multiple payment options. One such option is the pay-as-you-go method, which functions like an open account or tab that gradually depletes, but there’s also the consumption pack approach. Once these packs are exhausted, service ceases.
Microsoft estimates that around 70% of Fortune 500 companies are using Copilot AI, but some insiders worry about a hasty rollout which might negatively impact customers. Interestingly, Spataro notes that Copilot Chat is well-received among organizations that utilize Microsoft’s services.
Initially, we had Bing Chat Enterprise which we rebranded, and while the process of finding a suitable name was challenging and locating the product wasn’t always straightforward, surprisingly, it boasts an impressive user base. Our observation is that as users begin to interact with it, they soon grow accustomed to its benefits and come to appreciate the value it offers in a professional setting.
Despite Microsoft CEO Satya Nadella’s shift in focus, privacy and security concerns persist among users due to a series of security breaches. As per a Microsoft employee, the tool functions exceptionally well in revealing sensitive information that was not intended to be shared or believed to have been kept private, such as salary details.
It’s uncertain how users will respond to Microsoft’s Copilot Chat and the revised pricing strategy, or if it will boost AI business for the tech company. A past Business Insider article suggested that Microsoft depends on external suppliers to power its AI applications, like Microsoft 365 Copilot. This has led a senior Microsoft executive to describe many Copilot AI tools as being more of a novelty rather than essential.
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2025-01-16 19:39