Microsoft has once again set the AI world abuzz, this time by introducing Microsoft 365 Copilot Chat, a groundbreaking shift in the way companies can incorporate artificial intelligence into their daily operations. If you thought AI in business was just coworkers using smart assistants like Clippy’s great-grandchild, well, you haven’t seen anything yet. Microsoft is essentially unleashing what they call "a swarm of intelligent agents," ready to redefine productivity one chat or project at a time.
Let’s unpack this sophisticated announcement and see what it means for Windows users, businesses, and tech geeks everywhere.
Microsoft 365 Copilot Chat isn’t your average AI assistant. It takes the original M365 Copilot offerings—which are based on a $30-per-user license—and presents a new pay-as-you-go (consumption-based) model. Think of it this way: Instead of signing up for an unlimited buffet, you now have the option to order only the specific dishes you crave.
This option complements Microsoft's existing Security Copilot GenAI tool, and the move aligns with industry-wide experimentation on diverse payment models for AI tools. Microsoft is not alone here. For example:
So, if you’re a company looking for widespread integration into your workplace ecosystems, the license-based Copilot might still be your jam. However, if you prefer AI for ad-hoc use cases or you’re dipping your toes into AI for specific tasks, the consumption model could now be the better pick.
Here’s where it gets juicy: custom-built AI agents are getting democratized. Instead of just existing as static tools, these “agents” can now actively transform tasks by combining their independence with user-built data grounding.
Some real-world examples straight from Microsoft’s roadmap include:
For the technically inclined (or those just curious about the magic under the hood), here’s what powers the consumable Copilot Chat ecosystem:
Business owners reading this might ask: “Wait, are we just paying Microsoft to replace employees?” The answer (thankfully) is no. In fact, AI doesn’t kill jobs—it kills monotony.
According to experts like Wayne Roye, CEO of Staten Island-based Troinet, the real winners with AI are creative thinkers who adapt and innovate with these tools. Combine this with measurable ROI tools (albeit limited in the consumption-based model), and companies can now easily justify their investments in tools like Copilot.
For example:
One of the standout features is Microsoft’s inclusion of enterprise-level IT controls:
If “intelligent agents” sound intimidating, they shouldn’t be. Microsoft seems dead-set on making them as user-friendly as designing a PowerPoint presentation or updating a spreadsheet formula.
So, what do you think? Is the consumption-based model smarter for businesses, or will companies still stick to license-based powerhouses? Let me know in the Forum comments below, and let’s geek out over the future of Microsoft AI!
Source: CRN https://www.crn.com/news/ai/2025/microsoft-365-copilot-chat-brings-introduces-consumption-based-ai-agent-product
Let’s unpack this sophisticated announcement and see what it means for Windows users, businesses, and tech geeks everywhere.
Microsoft 365 Copilot Chat isn’t your average AI assistant. It takes the original M365 Copilot offerings—which are based on a $30-per-user license—and presents a new pay-as-you-go (consumption-based) model. Think of it this way: Instead of signing up for an unlimited buffet, you now have the option to order only the specific dishes you crave.![](data:image/svg+xml;charset=utf-8,<svg height="64px" width="64px" xmlns="http://www.w3.org/2000/svg" version="1.1"/>)
This option complements Microsoft's existing Security Copilot GenAI tool, and the move aligns with industry-wide experimentation on diverse payment models for AI tools. Microsoft is not alone here. For example:
- Amazon offers both on-demand and batch pricing for its Bedrock AI models.
- Salesforce has dabbled with pricing models such as $2 per conversation for its Agentforce service.
| Picture this as a "menu of AI features." Both the license-based M365 Copilot and consumption-based Copilot Chat serve you AI with different portions. Let’s compare the two so you can see what’s up: | Feature | License-Based M365 Copilot ($30/user/month) | Consumption-Based Copilot Chat (Pay-As-You-Go) |
|---|---|---|---|
| Integration in Teams, Word, Excel, etc. |  |  | |
| Enterprise-level data grounding (via Microsoft Graph) | | | |
| SharePoint Advanced Management | | | |
| Advanced analytics (ROI metrics, tracking) | | | |
| Basic Reporting | | | |
| Pre-Built Agents | | | |
| Pay Model | Monthly License Fee | Metered, per-use fees |
Here’s where it gets juicy: custom-built AI agents are getting democratized. Instead of just existing as static tools, these “agents” can now actively transform tasks by combining their independence with user-built data grounding.Some real-world examples straight from Microsoft’s roadmap include:
- A CRM Agent that fetches account details before a customer meeting.
- A Field Service Agent that quickly retrieves product manuals or troubleshooting information.
- An HR Agent to streamline employee concerns, provide policy information, or even aid in recruiting.
For the technically inclined (or those just curious about the magic under the hood), here’s what powers the consumable Copilot Chat ecosystem:1. Grounded Functionality
Grounding is the process of training AI on domain-specific data. Traditionally, this has been handled by Microsoft Graph and linked to robust enterprise data ecosystems. However, Copilot Chat offers only web-based grounding (ideal for smaller use cases) while reserving full Graph capabilities for the license-based model.2. Agent Management
These agents are ridiculously simple to set up. Administrators or even users can feed them instructions, equip them with knowledge sources, and name them. On the backend, you’re essentially connecting these programs to structured APIs combined with enterprise data management policies.3. “Autonomous Actions” (Beta)
Remember when AI assistants were passive? Not anymore. These agents can independently perform certain automated tasks—like arranging meetings or updating dashboards—based on predefined user instructions. Keep an eye on this feature, as it hints at more extensive automation options in the near future.
Business owners reading this might ask: “Wait, are we just paying Microsoft to replace employees?” The answer (thankfully) is no. In fact, AI doesn’t kill jobs—it kills monotony.According to experts like Wayne Roye, CEO of Staten Island-based Troinet, the real winners with AI are creative thinkers who adapt and innovate with these tools. Combine this with measurable ROI tools (albeit limited in the consumption-based model), and companies can now easily justify their investments in tools like Copilot.
For example:
- Customer-Facing Roles: Agents can auto-fetch client data, cutting meeting prep time drastically.
- Operations Teams: Pre-built IT bots can manage service tickets, reducing backlog.
- Marketing Teams: Copilot’s content suggestions can accelerate campaign deployment.
One of the standout features is Microsoft’s inclusion of enterprise-level IT controls:- Data Privacy: Copilot warns users when data permissions are breached.
- Admin Controls: IT Admins retain full authority to deploy, limit, or customize access to agents.
- Preview Features: Some newer functionalities (e.g., Copilot Pages for team collaboration) are launching in pilot phases to gather feedback.
Looking Ahead: Microsoft's CoreAI Ambitions
This release isn’t just about expanding Copilot—it’s a declaration of Microsoft’s multi-faceted approach to enterprise AI. The creation of the CoreAI – Platform and Tools division, headed by none other than Facebook’s ex-engineering leader Jay Parikh, is proof that Microsoft is laser-focused on building scalable, enterprise-optimized AI solutions.Final Thoughts: Is This the AI Revolution We Were Promised?
Ultimately, Microsoft 365 Copilot Chat is a pioneering step toward bringing AI closer to everyday users, not just tech-savvy developers or large enterprises. Whether you’re running a two-person small business or managing IT for a multinational corporation, the mix-and-match pricing and custom AI capability can be game-changers.If “intelligent agents” sound intimidating, they shouldn’t be. Microsoft seems dead-set on making them as user-friendly as designing a PowerPoint presentation or updating a spreadsheet formula.
So, what do you think? Is the consumption-based model smarter for businesses, or will companies still stick to license-based powerhouses? Let me know in the Forum comments below, and let’s geek out over the future of Microsoft AI!
Source: CRN https://www.crn.com/news/ai/2025/microsoft-365-copilot-chat-brings-introduces-consumption-based-ai-agent-product