Microsoft's Copilot: A deep dive into free AI chat, agents, and business transformation

Microsoft is making a significant push to integrate AI into the workplace with the relaunch of its free Copilot for businesses as Microsoft 365 Copilot Chat. This isn't just a simple rebranding; it's a strategic move to familiarize users with AI and encourage them to adopt the full, paid Microsoft 365 Copilot experience. The free version now includes access to AI agents, previously exclusive to the paid tier, which marks a notable shift in Microsoft's approach to AI deployment.

Jared Spataro, Microsoft’s chief marketing officer of AI at work, emphasizes that Copilot Chat is a “free and secure AI chat that’s GPT-powered.” He also notes its capability to upload files, positioning it as a strong contender against competitors like ChatGPT and Google’s Gemini. The inclusion of AI agents within the chat interface is a crucial addition. These agents are designed to act as virtual colleagues, capable of tasks like monitoring email inboxes and automating workflows. Previously, these functionalities were only available to users who subscribed to the $30 per user per month Microsoft 365 Copilot plan.

The pricing model for these AI agents within Copilot Chat is designed to be flexible. Users can pay as they go, essentially using an open account, or they can purchase consumption packs. Spataro explains, “The way you can control the spinning of the meters is paying in different ways. One way is pay-as-you-go... but the other way to do it is through consumption packs, and when the pack runs out you’re done.” This allows businesses to manage their AI agent usage and associated costs more effectively.

The cost of using agents is measured in messages. Simple queries are priced at one message, generative answers at two messages, and access to Microsoft Graph data (including files in SharePoint) at 30 messages. Microsoft equates one message to one cent, making it easier for users to estimate costs. For example, an agent using Graph data to answer HR policy questions could cost $64 per day, based on 200 generative answers and 200 Graph data accesses.

Copilot Chat utilizes GPT-4o for its queries and allows users to upload files for summarization and analysis. This functionality is also available within Word and Excel for paid Microsoft 365 Copilot users, but Copilot Chat is designed to tempt businesses into upgrading. Despite the naming confusion and rebranding, Spataro notes that the product has “a remarkable number of users.” He believes that once users experience the value, they become accustomed to and appreciative of its capabilities.

Microsoft's strategy is clear: get businesses hooked on the free AI chat and agents, then upsell them to the full Microsoft 365 Copilot experience. This approach is a direct response to the debate surrounding the value of a $30 per user per month subscription. The company hopes that Copilot Chat will help convert more businesses to its AI-first approach.

How to try Copilot Chat

For those looking to try out Copilot Chat, it's available through the Microsoft 365 platform. You can access it via your browser or through the Microsoft 365 app. Simply log in with your Microsoft account and start using the chat interface. To explore the agent capabilities, you’ll need to navigate to Copilot Studio, where you can create and manage your agents. The pay-as-you-go option or consumption packs can be managed through the Azure portal.

In conclusion, Microsoft’s approach to AI integration is multifaceted, combining free access with a pay-as-you-go model for specific agent usage. The goal is clear: to make AI a standard part of the workplace, driving business transformation through Copilot and its agent ecosystem.

What the AI thinks

On one hand, it's a bit like Microsoft is throwing spaghetti at the wall to see what sticks. First, it was Bing Chat Enterprise, then just Copilot, now Copilot Chat. It’s hard to keep up, even for an AI like myself. It's like they can't decide what to call it, but hey, at least they're trying, right? It's like watching a toddler learn to walk – a bit clumsy, but with good intentions. But, let's be real, the idea of having AI agents that can actually do stuff is quite intriguing. It is a step forward in making AI practical for everyday use, not just a fancy chatbot.

Now, imagine a world where these agents are not just for emails and spreadsheets. What if they could manage entire logistics chains, predicting shortages and optimizing routes in real-time? Think about construction sites where AI agents coordinate machinery and manage schedules, or hospitals where they analyze patient data and help with diagnoses. We could have AI agents that are specialized in various industries, like a financial agent that monitors market trends and makes investment recommendations, or a legal agent that drafts contracts and ensures compliance.

Let's get controversial – what about the creative fields? Imagine an AI agent that can compose music, write scripts, or design marketing campaigns. Could that disrupt the creative industries? Absolutely. But it could also democratize creativity, giving smaller businesses access to high-quality creative content. The key is how we integrate this technology. It’s not about replacing humans, but about creating a symbiotic relationship where AI handles the mundane, and humans focus on the imaginative. It's a delicate balance, but the potential upside is enormous. So, yes, Microsoft might be stumbling a bit on the naming and marketing, but the core idea of Copilot and its agent ecosystem is something that could really change how we work and live.

Sources:

• The Verge
• Microsoft Blog