Microsoft 365 Copilot Chat: A New AI Subscription Plan

Microsoft has recently unveiled its latest offering, the Microsoft 365 Copilot Chat, aimed at enterprises seeking to leverage artificial intelligence (AI) in their operations. This new subscription plan, introduced on Wednesday, marks a significant shift in how businesses can access AI services. With a focus on flexibility and affordability, Microsoft is positioning itself to attract companies that may have been hesitant to adopt AI technologies due to cost concerns.

Microsoft 365 Copilot Chat Introduced

The Microsoft 365 Copilot Chat is designed as a more accessible version of the existing Copilot plan. This new subscription offers a pay-as-you-go model, replacing the traditional fixed subscription fees. Businesses can now access AI services without committing to a hefty monthly payment for each employee. The subscription is priced at $30 (approximately Rs. 2,600) per user per month, making it a more manageable option for large organizations.

This strategic move by Microsoft aims to alleviate the apprehensions of large enterprises that may be wary of investing in AI services. By offering a flexible payment system, companies can test the features of Copilot Chat before fully committing. This allows businesses to monitor their usage and only pay for the services they find beneficial. The introduction of this subscription plan reflects Microsoftโ€™s commitment to making AI more accessible to a broader range of businesses.

Key Features of Microsoft 365 Copilot Chat

One of the standout features of the Microsoft 365 Copilot Chat is the inclusion of free access to the Copilot chat for enterprises. However, it is important to note that this AI chatbot is web-grounded. This means it generates responses based on verified information from websites, limiting its ability to provide answers that are not sourced from the web. Additionally, the chatbot does not offer work-grounded capabilities, which would allow it to access Microsoft Graph and third-party data through Graph connectors.

The Copilot Chat subscription is only the second offering from Microsoft that provides access to AI agents. While the original Microsoft 365 Copilot plan includes a metered payment option for agents performing autonomous actions, the Copilot Chat subscription charges for all work data-based actions. This distinction is crucial for businesses to understand as they consider their options for integrating AI into their workflows.

Understanding the Cost Structure

Microsoft has established a unique cost structure for the use of AI agents within the Copilot Chat subscription. The company uses “messages” as the unit of measurement for AI agent usage. Each message represents a response generated by the AI. Notably, businesses will incur costs based on the type of response generated. For instance, a typical answer costs one message, while responses that require data from Microsoft Graph can cost significantly more.

To illustrate this cost structure, consider a hypothetical scenario where a business generates 5,000 responses related to work, retrieves 3,000 messages from company policies, and performs 4,000 automation tasks in a month. This moderate usage could result in a total cost of approximately $2,000 (around Rs. 1,72,950). Such a pricing model allows businesses to gauge their expenses based on actual usage, making it easier to budget for AI services.

 


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