Start small, scale smart with Microsoft 365 Copilot Chat

Microsoft recently announced a major new addition to its portfolio of AI solutions - Microsoft 365 Copilot Chat. This new approach brings businesses the ability to take advantage of AI with a flexible pay-as-you-go model. Let's take a closer look at how Copilot Chat can help your organisation experiment with AI on its digital transformation journey — without the need for a large upfront investment.

What is Microsoft 365 Copilot Chat?

Microsoft 365 Copilot Chat is an AI-powered chat tool designed to deliver answers and insights with deeper context and intelligence than traditional web-based chats. As part of Microsoft’s "AI for Everyone" strategy, Copilot Chat empowers businesses of all sizes to explore the value of AI technology. This feature enables organisations to integrate AI into their workflows without the upfront commitment required for a full Microsoft 365 Copilot licence, making it easier for businesses to experiment with and evaluate the benefits of AI.

Three Key Components

Microsoft 365 Copilot Chat consists of three essential components that work together to offer a robust AI experience:

1. Copilot Chat
• A web-based AI chat powered by GPT-4o, accessible at copilot.microsoft.com.
• Provides secure, free AI chat functionality to get started quickly and easily.
2. Agents
• Leverages Microsoft Graph connectors to access your organisation’s data, enabling AI to deliver personalised insights grounded in your specific business context.
• Includes tools to customise agents for specific business processes and needs, offering flexibility and scalability.
3. Copilot System Control
• Provides enterprise-grade data protection and governance, ensuring that AI adoption remains secure and compliant with organisational policies.
• Includes advanced tools for managing and monitoring AI usage across the organisation.

Who is the Microsoft 365 Copilot Chat for?

Microsoft 365 Copilot Chat is ideal for businesses already using Microsoft 365 and looking to explore the value of AI but not yet ready to invest in full Microsoft 365 Copilot licences or companies who started their Copilot journey with a small license investment. Many organisations struggle to determine whether AI — and specifically Microsoft 365 Copilot — will deliver measurable value. This uncertainty often causes hesitation, as adopting Microsoft 365 Copilot requires an additional monthly licence fee per user on top of an existing Microsoft 365 subscription. For organisations grappling with whether the investment is worthwhile, Microsoft 365 Copilot Chat provides a low-risk, high-reward starting point.

How Does Microsoft 365 Copilot Chat Address Investment Concerns?

Microsoft 365 Copilot Chat offers organisations an opportunity to adopt AI incrementally. Instead of committing to significant upfront costs, businesses can start with a free Copilot Chat adoption, then explore building custom agents in a consumption-based model. Finally, they can upgrade to full Copilot capabilities, piloting the solution at a small scale and cost.

This approach aligns perfectly with a crawl-walk-run strategy, enabling businesses to:

1. Test the solution: Experiment with Copilot Chat to understand how it works and how it integrates into daily workflows.
2. Identify use cases: Explore specific scenarios where AI adds value, such as automating repetitive tasks, improving collaboration, or enhancing decision-making.
3. Build confidence and scale: Gradually expand usage, build a business case for ROI, and transition to full Microsoft 365 Copilot licenses when the benefits outweigh the costs.

With Copilot Chat, organisations can start small, evaluate the potential, and make informed decisions about scaling up their investment. However, because Microsoft 365 Copilot Chat with Agents operates on a consumption-based pricing model, it’s critical for organisations to monitor their usage. Understanding when they reach the tipping point — where switching to full licenses becomes more cost-effective — is essential. This is where SoftwareOne’s expertise can help.

Detailed comparison of Microsoft 365 Copilot Chat and Microsoft 365 Copilot functionality, Source: Microsoft

How SoftwareOne can help

At SoftwareOne, we understand that adopting new technologies like Microsoft 365 Copilot Chat can feel daunting. That’s why we’ve developed a modular approach to support organisations at every stage of their AI journey.

1. Licensing guidance: We’ll help you find the right licensing model, starting small with Microsoft 365 Copilot Chat and scaling as needed.
2. Use case identification: Collaborate with our experts to uncover high impact use cases tailored to your business.
3. Building the business case: Develop a strong, ROI-based business case to justify further AI investment.
4. Data security and Compliance: Address compliance concerns, understand where your data lives, and implement policies to protect organisational data.
5. Driving adoption: Ensure employees embrace and effectively use Copilot Chat to its fullest potential, avoiding shadow IT (like using external solutions with no protection of an organisation’s data).

Our goal is to help you make the most of these innovations while aligning them with your business objectives.