What’s the difference between Microsoft 365 Copilot (Premium) and Copilot Chat (Basic)?

What’s the difference between Microsoft 365 Copilot (Premium) and Copilot Chat (Basic)?

Introduction

Copilot Chat (Basic) and M365 Copilot (Premium) offer different capabilities and appear in different Microsoft 365 locations depending on licensing. Basic is included at no additional cost for all eligible University users, while Premium requires a paid Microsoft 365 Copilot license. Use this guide to understand what each version can do and where it is available.

Summary

  • Copilot Chat (Basic) is a free, secure AI chat experience available to all eligible University faculty, staff, and students. It can answer questions, generate draft content, and summarize information using web data and content you explicitly provide. Copilot Chat (Basic) is available through the Microsoft 365 Copilot app, Outlook, and Teams Chat, but not directly inside Word, Excel, PowerPoint, or OneNote.

  • M365 Copilot (Premium) builds on Copilot Chat by integrating directly with your Microsoft 365 work content you already have permission to access, including files, emails, meetings, and chats. It unlocks full in‑app Copilot experiences across Microsoft 365 apps and provides priority access to Copilot services. A paid Microsoft 365 Copilot license is required. It is only available to University faculty and staff.

Key differences at a glance

Examples only; this is not a complete list of features.

Area

Copilot Chat (Basic)

M365 Copilot (Premium)

Area

Copilot Chat (Basic)

M365 Copilot (Premium)

Cost

Included at no additional cost

Requires paid Microsoft 365 Copilot license

Where Copilot is available

Microsoft 365 Copilot app, Outlook, and Teams chat only

Microsoft 365 Copilot app plus full in‑app Copilot experiences across Word, Excel, PowerPoint, OneNote, Outlook, and Teams

Context used

Web data plus content you explicitly reference or provide

Web data plus Microsoft 365 work content you already have permission to access (files, emails, meetings, chats)

Word

Not available in‑app

Draft, rewrite, and structure documents using related work content

Excel

Not available in‑app

Analyze data, build formulas and charts, identify trends

Outlook

Summarize the open email or email thread and draft replies within the current conversation

Summarize across related emails and attachments and generate context‑aware replies

Teams

Available in Teams Chat for assistance within the active conversation

Available across Teams for chat, meeting, file, and channels


What does “Basic” mean?

Copilot Chat (Basic) is the free Copilot experience. All University faculty and staff have access to this experience without purchasing an additional license.

Basic provides:

  • Secure, enterprise‑protected Copilot Chat

  • Web‑based AI responses

  • The ability to reference content you manually provide or files you are actively working with

  • Chat‑level assistance in the Microsoft 365 Copilot app, Outlook, and Teams


What does “Premium” mean?

M365 Copilot (Premium) is the paid Microsoft 365 Copilot add‑on license.

Premium provides everything included in Copilot Chat (Basic), plus:

  • Deep integration with your Microsoft 365 work content

  • Full Copilot functionality inside Word, Excel, PowerPoint, OneNote, Outlook, and Teams

  • More personalized, context‑aware responses based on your permitted work data

  • Priority access to Copilot services


How can I tell which version I have?

Copilot labels the experience in‑product under your name in supported apps:

  • Users without a paid license will see Copilot Chat (Basic)

    image-20260428-195600.png
  • Users with a paid license will see M365 Copilot (Premium)

    image-20260428-195610.png

* Examples only, this is not a complete list of features. For full details, see Microsoft Support: How Copilot Chat works with and without a Microsoft 365 Copilot license.