Half the confusion about Microsoft Copilot comes from people comparing notes on different versions. Your colleague says "it summarised my whole week" and yours says "I can't see your emails". Both are telling the truth.
This guide explains the tiers in plain English so you know what to expect from yours.
1. The three everyday experiences
Microsoft Learn currently describes three experiences, plus usage-based extras.
| Experience | Who has it | What it can use |
|---|---|---|
| Copilot Chat (Basic) | Included with eligible Microsoft 365 business plans | The web, plus files you upload or content open in Outlook and Teams |
| Microsoft 365 Copilot (Basic) | Eligible Microsoft 365 users without the add-on licence | As above, plus standard access to Copilot in Word, Excel, PowerPoint and OneNote |
| Microsoft 365 Copilot (Premium) | Users with the Microsoft 365 Copilot add-on licence (included in Microsoft 365 E7) | The web plus your work data (emails, files, meetings, chats) through Microsoft Graph and Work IQ, with priority access |
As of October 2026, on top of Premium, Microsoft offers usage-based capabilities billed in Copilot Credits, including Copilot Cowork. Your organisation has to switch these on.
2. The one difference that matters most
The big line is work data grounding.
- Without the add-on licence, Copilot Chat does not search your mailbox, calendar or SharePoint on its own. You give it content by uploading a file, pasting text, or using Copilot in Outlook or Teams with the item open.
- With the add-on licence, Microsoft Copilot can find and use your work content automatically, always within your existing permissions.
So if a prompt says "summarise my emails from Sam", it needs Premium. "Summarise this email" with the email open works more widely.
3. Agents and your licence
- Agents that rely only on instructions or public websites are included with Copilot Chat.
- Agents that use shared work data, such as SharePoint, are pay-as-you-go for Copilot Chat users (metered in Copilot Credits) and included for licensed Premium users.
4. How to check what you have
- Look at the in-product label. Microsoft shows labels in Word, Excel, PowerPoint, OneNote and the Microsoft Copilot app to show which experience you are in.
- Ask Microsoft Copilot: "What can you access about my work?" The answer is a quick hint, not proof.
- Ask IT. Admins can see your assigned licences in the Microsoft 365 admin centre, and Microsoft provides a service plan diagnostic tool.
5. Smaller organisations
Microsoft Copilot Business is an add-on for organisations with up to 300 users on eligible Microsoft 365 Business plans. It provides the same Microsoft Copilot capabilities with purchasing designed for small and medium businesses. Above 300 users, enterprise licensing applies.
Sources
Product details checked against these Microsoft pages in October 2026. Microsoft updates Microsoft Copilot frequently, so check the current page before relying on a detail.
Choose the right starting point for your organisation
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Prefer email? josh@igoe.ai