Microsoft’s latest push to fold AI into everyday enterprise workflows adds a new, very public layer: benchmarking Copilot adoption and nudging organizations to compete — internally and against peer companies — on who uses the assistant most. The company has begun rolling out Benchmarks in the Copilot Dashboard inside Viva Insights, offering both internal cohort comparisons (by manager group, region, job function) and external peer-group comparisons (against the top 10% and top 25% of similar organizations). The feature is being introduced as a private preview and will reach broader availability on a phased schedule controlled by Microsoft.
Microsoft has steadily expanded the footprint of Copilot across its consumer and enterprise offerings — from licensing options that let personal Copilot subscriptions be used on work documents (when permitted by IT) to embedding Copilot into apps such as OneDrive and adding controls for web grounding (web search) in Copilot sessions. These parallel moves make the new Benchmarks capability a logical next step: now that organizations can provision Copilot widely and measure usage within apps, Microsoft is packaging comparative analytics to surface adoption gaps and, implicitly, to motivate uptake.
Key technical facts Microsoft published about rollout timing and availability (phased targeted release followed by general availability) come from its message center and roadmap entries. Organizations should treat dates as subject to change; Microsoft’s phased rollout cadence means specific tenants may see the feature at different times.
Analysts should also consider:
Practical, measured adoption work will win out. Organizations that pair Benchmarks with thoughtful governance, transparent communication, and a focus on outcomes rather than raw usage will extract the most value. Those that weaponize adoption metrics for punitive performance reviews or leaderboard shaming risk employee disengagement and compliance headaches.
In short, Benchmarks can accelerate a productive Copilot rollout — if IT leaders treat them as diagnostic instruments rather than performance scorecards.
Source: Neowin Microsoft wants organizations to compete on Copilot adoption
Background
Microsoft has steadily expanded the footprint of Copilot across its consumer and enterprise offerings — from licensing options that let personal Copilot subscriptions be used on work documents (when permitted by IT) to embedding Copilot into apps such as OneDrive and adding controls for web grounding (web search) in Copilot sessions. These parallel moves make the new Benchmarks capability a logical next step: now that organizations can provision Copilot widely and measure usage within apps, Microsoft is packaging comparative analytics to surface adoption gaps and, implicitly, to motivate uptake. What Microsoft is shipping: Benchmarks in the Copilot Dashboard
Microsoft’s announcement describes two distinct benchmark types inside the Copilot Dashboard:- Internal benchmarks — Compare adoption, returning user rates, and active user percentages across internal cohorts such as manager types, geographic regions, and job functions. These cohort breakdowns aim to expose adoption disparities inside a single organization.
- External benchmarks — Compare your percentage of active Copilot users against the top 10% and top 25% of companies either similar to yours (by industry, size, and headquarters region) or close to the top-tier overall benchmarks. Microsoft says each external benchmark group contains at least 20 companies and is calculated using randomized mathematical models and approximations so no single organization can be identified. These external cohorts are formed from information firms provided to Microsoft during procurement.
How external cohorts and privacy safeguards work
Microsoft’s message to admins is two-fold: benchmarking is powerful, but privacy remains essential. The vendor describes external cohorts as:- Composed of companies grouped by industry, size, and headquarters region.
- Including at least 20 companies per benchmark grouping, and
- Calculated using randomized mathematical models with approximations to avoid linking metrics back to any single firm.
Key technical facts Microsoft published about rollout timing and availability (phased targeted release followed by general availability) come from its message center and roadmap entries. Organizations should treat dates as subject to change; Microsoft’s phased rollout cadence means specific tenants may see the feature at different times.
Why this matters: the business case Microsoft is making
Microsoft’s strategy is to move Copilot from novelty to operational standard. Benchmarks serve three commercial and operational goals:- Drive adoption — By exposing usage gaps across teams and against peers, Benchmarks supply a data-driven argument to train, incentivize, or even mandate Copilot use where appropriate.
- Support change management — Benchmarks give Copilot champions concrete targets (e.g., “increase active users from 32% to the peer-group 50th percentile”).
- Monetize and retain — Higher perceived value and visible ROI metrics (hours saved, emails drafted with Copilot, meeting summaries) reduce churn and make renewals easier to justify. The Copilot Value Calculator already lets customers translate time-savings into dollars to drive that message.
Practical implications for IT admins and leaders
The Benchmarks feature gives IT and business leaders both new visibility and new responsibilities. Administrators should act deliberately in at least five areas:- Review access controls and permissions for the Copilot Dashboard (Viva Feature Access Management, Entra ID group controls). Decide who can view internal and external benchmarks.
- Audit policy settings that govern Copilot behavior: web search allowances, multiple-account access (personal Copilot), and optional connected experiences. These settings determine what data Copilot can surface and whether personal Copilot subscriptions can be used with work documents.
- Update training materials and rollouts: Benchmarks create new KPIs; ensure training aligns to measured behaviors and clarifies what counts as “use.”
- Communicate transparently: Explain what’s measured, how peer groups are formed, and how privacy is protected to avoid employee distrust and rumors.
- Assess compliance and labor implications: Benchmark-driven incentives can raise HR or works-council issues in some jurisdictions. Evaluate before adding AI-usage metrics to performance reviews.
Privacy, legal, and ethical risks — what to watch closely
Benchmarks may be aggregated and anonymized, but several important risks remain that organizations must evaluate:- Re-identification risk: Even aggregated metrics can sometimes be deanonymized, especially in small cohorts, niche industries, or when combined with other internal knowledge. Microsoft sets a 20-company minimum per external cohort, but it’s not a hard guarantee against inference attacks.
- Incentive distortion: When adoption becomes a competitive metric, teams may prioritize quantity of interactions over quality or appropriate use. This can erode trust in outputs produced by Copilot and encourage gaming behavior.
- Performance review creep: Microsoft’s own internal moves show a tilt toward evaluating employees based on AI usage in some divisions. Translating Copilot adoption into appraisal metrics risks penalizing employees who, for valid security or accessibility reasons, avoid AI tools. Organizations must align benchmarks with fair evaluation practices and exemptions where warranted.
- Data residency and compliance: Benchmarks rely on metadata and anonymized usage metrics that may be stored in Microsoft 365 services. Organizations with strict data sovereignty or sector-specific regulations should validate how aggregated metrics are stored, processed, and shared. Microsoft’s comms indicate benchmarks store anonymized usage metrics within Microsoft 365, but legal teams should dig into contractual terms.
- Transparency and employee consent: Workers deserve clarity about whether their usage contributes to internal and external benchmarks and how their behavior will be interpreted. That conversation is particularly important where local labor laws require consultation on monitoring or tech changes.
Benchmarks and the accuracy problem: numbers don’t always tell the full story
Benchmarks measure activity, not necessarily impact. A high percentage of active users can come from lightweight interactions (a single prompt to summarize an email), while deep, productivity-boosting uses—automation of workflows, long-form analysis—may come from fewer power users. Microsoft’s Copilot Dashboard does include impact metrics (hours saved, emails drafted with assistance), but translating those proxy measures into real business outcomes remains an interpretive task.Analysts should also consider:
- Adoption by app: Which apps show strong Copilot use? Are some teams using Copilot intensely in Word but not in Teams? This nuance matters when prioritizing training.
- Returning user percentage: One-off experiments inflate adoption figures. Returning-user metrics help distinguish sustained use from a pilot-phase spike.
- Normalization across roles: Comparing a sales team that drafts many emails to a research group that performs lengthier, rarer analyses is misleading unless benchmarks normalize expectations by job function. The Copilot Dashboard provides job-function cohorts to help here, but careful metric design remains essential.
Governance controls: what IT can and should configure now
Microsoft provides several controls that directly affect how Benchmarks reflect your environment:- Multiple account access to Copilot — This tenant-level setting controls whether personal Copilot subscriptions can be used on work documents. Turning it off prevents personal entitlements from affecting work-file activity. IT should decide where to draw that line.
- Allow web search in Copilot — Admins can toggle web grounding in Copilot. If enabled, users can request web-sourced content during Copilot sessions; if disabled, Copilot responses are limited to organizational data. Given compliance and IP concerns, many regulated customers will want to keep web search disabled or carefully managed.
- Feature access management and Entra ID groups — Control who can view the Copilot Dashboard and its Benchmarks using role-based assignments and Viva Feature Access Management. Grant dashboard access cautiously.
- Data retention and export policies — Benchmarks add new telemetry into Microsoft 365. Confirm retention policies and how anonymized benchmark results are archived or exported to internal BI tools.
Organizational change: design incentives and avoid perverse outcomes
If Benchmarks are going to be used as a lever, how should organizations design incentives?- Reward meaningful outcomes, not raw activity. Tie bonuses or recognition to measured business outcomes (reduced time to complete a class of tasks, faster customer responses) rather than sheer Copilot prompt counts.
- Use Benchmarks as a coaching tool. Public leaderboard effects can motivate, but they can also shame teams. Frame data around support — training, templates, and champions — not punishment.
- Establish exemptions and accommodations. Recognize that security, data classification, and legal constraints may prevent some teams from using Copilot in certain contexts. Exempt those teams from cross-group comparisons when appropriate.
- Iterate on KPIs. Start with internal pilot cohorts and assess whether adoption correlates with positive outcomes before rolling out competitive public dashboards across the organization.
Fast checklist for IT leaders — nine immediate actions
- Confirm whether your tenant can access the Copilot Dashboard and when Benchmarks will appear for your organization.
- Review and, if necessary, update the Multiple account access to Copilot tenant policy.
- Review the Allow web search in Copilot policy and decide default position for your users.
- Audit which staff/groups currently have Copilot Dashboard access and limit to decision-makers and analytics owners.
- Validate the minimum cohort sizes and privacy protections with Microsoft if external benchmarking concerns you.
- Prepare comms: explain what’s measured, who will see the data, and how it will be used.
- Align HR and legal teams to discuss any implications for performance reviews or employee monitoring.
- Establish baseline KPIs (active users, returning users, adoption by app, hours saved) and confirm interpretation.
- Pilot internal benchmarks with a few departments before publishing organization-wide or comparing externally.
What Benchmarks does — and doesn’t — tell you about Copilot’s business value
Benchmarks are a measurement layer, not a magic wand. They provide:- Visibility into which groups use Copilot and at what scale.
- A normalized way to compare against peers, which can motivate investment.
- Integration with existing Copilot impact metrics so leaders can pair adoption with value calculations.
- The quality or correctness of outputs generated by Copilot.
- The full cost/benefit calculus that must include licensing, training, change costs, and regulatory compliance.
- The long-term cultural impact of making AI adoption a public, competitive metric.
Final assessment: opportunity with caveats
Microsoft’s Benchmarks feature is a powerful addition for organizations serious about measuring AI adoption. It gives executives a way to surface disparities, set targets, and quantify progress — and it dovetails with Copilot’s expanding presence in OneDrive, Office, and other Microsoft apps. But these advantages come with real responsibilities: protecting privacy, avoiding incentive misalignment, and ensuring governance keeps pace with visibility.Practical, measured adoption work will win out. Organizations that pair Benchmarks with thoughtful governance, transparent communication, and a focus on outcomes rather than raw usage will extract the most value. Those that weaponize adoption metrics for punitive performance reviews or leaderboard shaming risk employee disengagement and compliance headaches.
In short, Benchmarks can accelerate a productive Copilot rollout — if IT leaders treat them as diagnostic instruments rather than performance scorecards.
Source: Neowin Microsoft wants organizations to compete on Copilot adoption