Microsoft's New AI Tools: Copilot Chat and Pay-as-You-Go Agents

Microsoft is stepping up its artificial intelligence game, and it’s looking more accessible—and potentially more economical—than ever before. If you’ve been eyeing AI integrations but find the entry costs daunting, Microsoft’s latest announcements about their AI offerings just might make you pay attention. On January 15, 2025, the tech giant revealed two new models for its increasingly robust AI ecosystem: Copilot Chat, a free version of its assistant, and a pay-as-you-go pricing model for customized AI agents. Intrigued yet? Let’s break it down and explore why this matters for businesses, Windows users, and IT managers alike.

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Meet Copilot Chat: A Free ChatGPT Alternative by Microsoft​

You’ve probably heard of tools like ChatGPT making waves for handling everything from drafting emails to creating marketing copy. Microsoft, through its longstanding partnership with OpenAI, has decided to toss its hat into the ring with the creatively named "Copilot Chat". This free version of an AI assistant is designed as a stripped-down, accessible introduction to AI-driven productivity.

What Can You Do with Copilot Chat?​

• Document Summarization: Upload Word files and let Copilot produce concise, digestible summaries—a boon for office workers drowning in memos.
• Spreadsheet Analysis: Tackle Excel spreadsheets with AI-generated insights that can pinpoint trends or errors.
• Presentation Enhancements: Don’t know how to spice up your PowerPoint? Copilot Chat suggests creative improvements for both visuals and messaging.
• Image Generation: For marketing and social media, the AI can whip up visuals—ideal for small businesses on a budget.

It’s worth noting that this free version is considerably slimmed down when compared to Microsoft’s premium offering, Microsoft 365 Copilot, which costs a hefty $30 per user per month. Let’s dig into why it might be worth those extra bucks.

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Premium Perks: Microsoft 365 Copilot vs. Copilot Chat​

While Copilot Chat gives users access to free GPT-4-based AI services, Microsoft 365 Copilot takes it up a notch. Think of it as upgrading from a hammer to a multi-tool. Here’s what the premium subscription includes:

• Integration with Office Apps: Create Word documents, analyze Excel data, and edit presentations with AI right inside Office. No need to juggle apps.
• Access to Company Data: Microsoft provides "tenant Graph grounding," a fancy term for granting the AI access to internal resources, like emails and SharePoint, for even deeper personalization.
• Hybrid Responses: Use both manually curated and AI-powered suggestions for more tactical flexibility.

Premium subscribers get a more tailored AI experience geared toward enterprises, offering productivity at scale for teams in a variety of roles, such as customer service, sales, and human resources.

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AI "Agents": Custom Assistants for Every Role​

Here's where things get even more interesting: Microsoft is rolling out AI agents, customizable mini-assistants crafted to suit unique workflows. Think of them as pre-configured, job-specific "Copilots" that extend beyond generic chat use.

Use Cases for AI Agents​

• Customer Service Teams: Instantly fetch customer profiles and histories during calls and chats.
• Maintenance Staff: Access repair guides or equipment schematics with just a query.
• Sales Teams: Pull up contracts, agreements, and sales data pre-meeting.

To sweeten the deal, Microsoft has made these "agents" easy to create—you don’t even need to be a programming wizard. Using what Microsoft calls Copilot Studio, teams can whip up specialized AI assistants by simply describing the tasks the agent should handle through plain language. Take a bow, low-code/no-code revolution.

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Pay-Per-Message Billing: Simplified Flexibility or Sneaky Costs?​

One of Microsoft’s boldest moves in this announcement is its new pay-per-message pricing structure for deploying AI agents. Pricing essentially boils down to a usage-based model:

• Pay-as-you-go: $0.01 per message.
• Bulk Packages: $200 buys 25,000 messages a month, perfect for teams already committed to heavy usage.

However, it’s not as simple as just “using a message.” Microsoft has tiered the kinds of actions these messages could involve:

• Basic Resolutions (1 message): For straightforward tasks, such as pulling up a document.
• Generative AI Queries (2 messages): Longer, GPT-generated responses.
• Tenant Graph Grounding (30 messages): Using specialized, company-specific data for more complex interactions.
• Autonomous Actions (25 messages): Taking actions on behalf of the user, such as approving requests or managing tasks directly.

In Practice:

• A customer service agent might cost $45 per day for 2,500 responses.
• An autonomous sales assistant conducting about 800 significant actions in one day could set you back approximately $232 daily.

For enterprises, this flexibility may be a lifesaver. Small businesses, on the other hand, might need to do some serious budgeting before deploying AI agents for persistent use.

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How Can Businesses Utilize This?​

Administration Simplified through Microsoft Power Platform Admin Center.
Admins get centralized control via the Microsoft Power Platform Admin Center, from configuring AI environments to tracking message usage and setting cost caps. This transparency is vital to prevent runaway charges and impacts directly how businesses scale these tools effectively.
Corporate IT departments can now:

• Monitor agent utilization to identify cost drains.
• Optimize chat configurations based on feedback.
• Cap usage limits to avoid unwanted surprises in billing.

Why Does it Matter for Windows Users?​

If you belong to the Office ecosystem (and let’s be honest, most enterprises and even SMBs do), these features integrate smoothly with Windows 10 and Windows 11. With Windows-focused tools like Teams, OneDrive, and SharePoint already standing as pillars of collaboration, adding Copilot AI functionalities enhances your workspace productivity without needing to reinvent your workflow.

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Broader Implications for AI in Productivity​

The Good:​

• Accessibility Revolution: By rolling out a free tier, Microsoft democratizes AI services to small businesses, startups, and teams wary of bloated software subscriptions.
• Pay-as-you-go Sensitivity: No rigid annual subscription fees—pay only for what you use. Perfect for businesses experimenting with AI use cases.

The Challenges:​

• Potential for Overcharges: Bulk messaging pricing could spiral out of control unless tightly managed.
• Limited Free Plan Actions: The base functionality won't cut it for enterprise-level users, who might quickly be forced to upgrade even if their needs are modest.

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Final Thoughts: Will You Use Copilot Chat?​

For anyone looking to dip their toes into the AI pool without getting drenched in invoices, Copilot Chat offers a compelling entry point. Windows-integrated workplaces looking for full AI immersion, however, will find themselves eyeing that premium $30 per-user subscription—or diving into Microsoft's agent ecosystem.
The pay-as-you-go model for agents reflects an interesting pivot, as cost models for generative AI continue to evolve. Businesses could see fantastic returns if they manage these tools wisely, but it’s not without risk.
What do you think, WindowsForum readers? Does pay-per-message pricing and a free AI assistant open doors for your workplace? Or do these pricing tiers and capabilities leave you skeptical about scalability? Join the conversation in the comments below!

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Source: The Decoder Microsoft introduces pay-per-message pricing for AI agents and a free Copilot chat tier