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Microsoft’s Copilot lineup looks different than it did a couple of years ago. The old Copilot Pro plan for individuals is gone, business pricing has been restructured with Copilot now bundled directly into plans, and there are now three clear paths depending on whether you are a solo user, a small business, or a large organisation. If you last looked at Copilot pricing in 2024 or early 2025, a lot of what you read is now out of date.
This guide breaks down what each option offers, what it costs in Australia right now, why Copilot Pro disappeared, and how to work out which plan is worth paying for.
What is Microsoft Copilot?
Microsoft Copilot is a generative AI virtual assistant integrated into Microsoft’s suite of applications, including Word, Excel, Outlook, and more. It helps you draft documents, summarise emails, build spreadsheets and manage your day. The free version gives you basic chat help on the web. The paid versions bring that AI directly into your apps and, for business plans, connect it to your own company data.
The name “Copilot” now covers more than one product, which is where the confusion comes from. There is the free web chat assistant, the business version that plugs into your organisation’s files and emails, and specialised tools like Copilot Studio for building AI agents. This guide focuses on the three plans most people compare: Copilot Free, Microsoft 365 Copilot, and the retired Copilot Pro.
Copilot Free vs Microsoft 365 Copilot vs Copilot Pro (Legacy)
| Feature | Copilot (Free) | Microsoft 365 Copilot | Copilot Pro (Legacy) |
|---|---|---|---|
| Who it is for | Anyone with a Microsoft account | Businesses and teams | Individuals (no longer sold) |
| Where it works | Web chat, Bing, Windows, mobile app | Word, Excel, Outlook, PowerPoint, Teams, OneNote | Word, Excel, Outlook, PowerPoint |
| Uses your business data | No | Yes, through Microsoft Graph | No |
| Base subscription needed | None | Qualifying Microsoft 365 business or enterprise plan | Microsoft 365 Personal or Family |
| AI models | Standard access | Priority access to latest models (GPT-5.x), model choice | Priority access to newer models |
| Pre-built agents | No | Yes — Researcher, Analyst, Facilitator | No |
| Support | Basic, community help | Priority business support | Standard support |
| Status in July 2026 | Active | Active — current plan for organisations | Retired — support ends 1 August 2026 |
Copilot Pro: Key Features and Capabilities
Microsoft Copilot Pro is designed for users who need more than just basic productivity tools. It offers a comprehensive set of advanced features that cater to both personal and professional needs, making it a powerful assistant for those who require robust AI capabilities.
- Advanced Document Creation and Editing: Users have access to enhanced AI tools that assist in creating complex documents, presentations, and reports. These tools include advanced grammar and style suggestions, content generation, and layout optimisation, ensuring professional-quality results.
- Comprehensive Data Analysis: Copilot Pro integrates seamlessly with Microsoft Excel, Dynamics 365, and Power BI to provide detailed data analysis capabilities. Users can leverage AI to identify trends, generate insights, and create data visualisations, making it easier to make informed decisions based on complex data sets.
- Customisable Workflows: The Pro version allows users to automate repetitive tasks across various Microsoft applications. This feature is particularly beneficial for businesses that need to streamline processes and reduce manual effort, leading to increased efficiency and productivity.
- Enhanced Integration: Copilot Pro offers a wider integration across the Microsoft ecosystem, including advanced applications like Dynamics 365 and third-party tools. This makes it easier to manage complex projects, collaborate with large teams, and maintain a unified workflow across different platforms.
- Premium Support: Copilot Pro users benefit from 24/7 priority customer support to help resolve issues swiftly, ensuring minimal disruption to your workflow.
Copilot and Microsoft 365 Plans: Pricing and Compatibility
Microsoft Copilot is available across various Microsoft 365 plans tailored to different user groups, each offering a set of features designed to meet the varying needs of individuals, small businesses, and large enterprises. These plans provide flexibility and scalability, ensuring that users can find the right fit for their specific requirements.
- Microsoft 365 Personal and Family: The Copilot Free version is included with Microsoft 365 Personal and Family subscription plans, though offering only basic AI tools. For those seeking more advanced features, Copilot Pro is available for a monthly subscription.
- Microsoft 365 Business Basic: This plan supports Copilot Free, offering essential AI tools at no extra cost. For businesses requiring more sophisticated AI features, Copilot Pro can be included for an additional fee.
- Microsoft 365 Business Standard: Both Copilot Free and Copilot Pro are compatible with this plan. The Pro version, available at an extra cost, is particularly beneficial for businesses leveraging the advanced features included in the Standard plan.
- Microsoft 365 Business Premium: While Copilot Free is accessible with this plan, Copilot Pro is recommended for Business Premium users. It provides enhanced security and advanced AI tools that complement the premium features of this plan, though it does require an annual subscription.
- Microsoft 365 E3 and E5: Enterprise plans such as E3 and E5 are optimised for use with Copilot Pro. These plans already include high-level security and integration features, and adding Copilot Pro offers even more powerful AI tools for large teams and organisations. However, an annual financial commitment is required for this upgrade.
Key Features by Plan
Copilot Free: Key Features and Capabilities
Microsoft Copilot Free is a web-based AI chat assistant available to anyone with a Microsoft account. It is useful for general questions, drafting text, brainstorming ideas, and generating images within daily limits. It does not plug into your desktop Office apps or see any of your files.
- Web chat assistant: Ask questions, get summaries, draft text, and generate images through the Copilot web app, Bing, or the Windows Copilot sidebar.
- No app integration: Copilot Free does not work inside Word, Excel, Outlook, or PowerPoint. For AI inside those apps, you need a paid plan.
- Basic usage limits: Daily limits apply to chat messages and image generation.
- No sign-in required for basic use: You can start chatting without an account, though signing in unlocks higher limits.
Microsoft 365 Copilot: Key Features and Capabilities
Microsoft 365 Copilot is the business version, deployed by your IT admin as part of a qualifying Microsoft 365 plan. It adds AI drafting and rewriting inside Word, Excel, PowerPoint and Outlook, meeting summaries in Teams, and data analysis in Excel that spots trends and builds charts from your own spreadsheets. Because it reads your data through Microsoft Graph, it can pull in context from your recent emails and documents.
- AI in your apps: Copilot works directly inside Word, Excel, PowerPoint, Outlook, Teams, and OneNote.
- Grounded on your work data: Through Microsoft Graph, Copilot can reference your emails, documents, meetings and Teams chats to give answers specific to your work.
- Pre-built agents: Includes Researcher, Analyst, and Facilitator agents for common business tasks.
- Priority model access: Priority access to the latest OpenAI models (GPT-5.X) and model choice.
- Enterprise Data Protection: Management, compliance, and admin controls included.
- Analytics: Measure adoption, usage, and business impact.
Copilot Pro (Legacy)
Copilot Pro offered AI in the Office apps for individuals, plus priority access to newer AI models and higher usage limits. It was retired for new sign-ups in late 2025. Its features now live inside Microsoft 365 Premium, described below.
Limitations of Copilot Free
While Copilot Free is a useful starting point, it comes with several restrictions that may limit its value for regular or professional use.
- No app integration: Copilot Free does not work inside Word, Excel, Outlook, PowerPoint, or Teams. All interactions happen through the web chat interface, Bing, or the Windows sidebar. You cannot use it to draft or edit documents directly within your Office apps.
- Daily usage caps: Microsoft applies daily limits on the number of chat messages and image generations you can use. Once you hit the cap, you need to wait until the next day to continue.
- No access to your data: Copilot Free cannot read your files, emails, calendar, or Teams conversations. Every response is based on general knowledge, not your work context. This means it cannot summarise your inbox, pull data from your spreadsheets, or reference a document you are working on.
- Standard AI models only: Free users do not get priority access to Microsoft’s latest AI models. Paid plans receive newer models first and offer the ability to choose between models.
- No pre-built agents: Business-focused agents like Researcher, Analyst, and Facilitator are only available on Microsoft 365 Copilot. Free users cannot access these.
- Community support only: There is no priority or direct support channel. If something goes wrong, you are limited to community forums and self-help documentation.
- No admin or compliance controls: For businesses evaluating the free tier for staff use, there are no management, compliance, or data protection controls available. Enterprise Data Protection is only included with paid plans.
Current AUD Pricing (July 2026)
Microsoft updates Copilot pricing regularly, so treat the numbers below as a guide and confirm the exact figure on Microsoft’s Australian pricing page before you buy. All USD prices below are from Microsoft’s official pricing pages as of July 2026. AUD conversions are indicative estimates and may vary by reseller, contract type, and GST treatment.
| Plan | USD Price | Approx. AUD | Billing |
|---|---|---|---|
| Copilot Free | $0 | $0 | N/A |
| Microsoft 365 Business Standard with Copilot (bundled) | USD $23.50/user/month | ~AUD $36–$38/user/month | Annual commitment |
| Microsoft 365 Business Premium with Copilot (bundled) | USD $32.00/user/month | ~AUD $49–$52/user/month | Annual commitment |
| Microsoft 365 Copilot Business (add-on) | USD $18/user/month (promo until 30 Sep 2026; normally $21) | ~AUD $28–$33/user/month | Annual commitment, on top of a qualifying M365 Business plan |
| Microsoft 365 Premium (replaces Copilot Pro, for individuals) | USD $19.99/month or $199.99/year | ~AUD $30–$33/month | Monthly or annual |
| Microsoft 365 Personal (includes Copilot in apps) | USD $9.99/month or $99.99/year | ~AUD $16/month | Monthly or annual |
What Happened to Copilot Pro?
Copilot Pro, the standalone plan that used to sit on top of a Microsoft 365 Personal or Family subscription at USD $20 per month, was retired for new sign-ups in late 2025. Microsoft folded its features into a new consumer plan called Microsoft 365 Premium. This plan bundles the Office apps, AI features in Word, Excel, Outlook and PowerPoint, priority access to Microsoft’s latest AI models, the highest consumer Copilot usage limits, and up to 6 TB of OneDrive storage (1 TB per person, up to 6 people) into one subscription.
If you already had Copilot Pro before it was retired, you can keep using it until you cancel or until support ends on 1 August 2026. After that date, Microsoft 365 Premium is the way to get Copilot inside your Office apps as an individual.
Microsoft also now includes Copilot in the standard Microsoft 365 Personal (USD $9.99/month) and Family (USD $12.99/month) plans for the subscription owner, with higher-than-free usage limits. Microsoft 365 Premium adds the highest usage limits, exclusive access to advanced Copilot features, and AI agents for complex tasks like source-cited research reports and data analysis with visualisation.
Microsoft made the change because the old setup asked individual users to pay for a base Microsoft 365 subscription and then pay again for Copilot Pro on top, adding up to close to USD $30 a month all in. Microsoft 365 Premium rolls both into one bill at USD $19.99 per month, which is easier to budget for.
Which Copilot Plan Do You Need?
Best for Individuals
If you mainly want AI help with personal documents, emails and everyday writing, start with Copilot Free. It costs nothing and covers most casual needs through web chat. If you already use Microsoft 365 Personal or Family, you now get Copilot built into your apps as the subscription owner. If you want the highest usage limits, exclusive advanced features, and AI agents, Microsoft 365 Premium (USD $19.99/month) is the plan that replaced Copilot Pro.
Best for SMBs
Small and medium businesses under 300 seats should look at Microsoft 365 Business Standard with Copilot (USD $23.50/user/month, annual) or the Microsoft 365 Copilot Business add-on (USD $18/user/month promo until 30 September 2026, normally $21) if you already have a qualifying base plan. These options add AI to your team’s everyday tools without the complexity of an enterprise rollout. Before rolling it out, check your SharePoint and OneDrive permissions — Copilot can only see what a user already has access to, and tidy permissions mean fewer surprises.
Best for Enterprise
Larger organisations with hundreds or thousands of seats, complex data governance needs, or role-specific AI requirements should look at Microsoft 365 Copilot on E3 or E5. The enterprise add-on is USD $30 per user per month on an annual commitment. This tier gives deeper integration, advanced security controls, SharePoint Advanced Management, and access to pre-built agents and Copilot Studio for building custom agents. Factor in the base Microsoft 365 licence cost too, since Copilot is always sold as an add-on at the enterprise level, and larger agreements may qualify for volume discounts.
Things to Consider Before You Choose
A few practical points can save you money once you have picked a plan.
- Task complexity. If your work involves simple document editing, email drafting and basic task management, Copilot Free may be enough. If you need advanced document creation, detailed data analysis or automated workflows, a paid plan pays for itself faster.
- Budget and billing. Annual commitments are usually cheaper per month than paying monthly. If your team size is stable, locking in an annual plan is generally the better deal.
- Licence stacking. For business plans, Microsoft 365 Copilot is either bundled into a plan (Business Standard with Copilot, Business Premium with Copilot) or sold as an add-on to your existing base plan. Either way, budget for the total cost, not just the Copilot component.
- Australian pricing changes. Microsoft increased base Microsoft 365 plan pricing for Australian businesses from 1 July 2026. Review your renewal dates and consider locking in before your next renewal to avoid paying the new rates.
Get the Right Copilot Plan For Your Needs
Copilot Pro is ideal for power users, professionals, and businesses that need a comprehensive, AI-driven productivity solution – but choosing between the various plans and versions available will depend strongly on your specific needs.
As a certified Microsoft Partner, Steadfast Solutions can help you find the right Copilot version to suit your requirements. Reach out to us for a consultation and discover how Microsoft Copilot can be tailored to meet your personal or business needs. Let us help you get the most out of your Microsoft 365 experience.
FAQs
Is Microsoft Copilot free?
Yes, a free version of Microsoft Copilot is available to anyone with a Microsoft account. It works as a web chat assistant with basic writing help, image generation, and general questions. To get Copilot working inside Word, Excel, Outlook and other apps, you need a paid plan such as Microsoft 365 Copilot (for business) or Microsoft 365 Personal, Family, or Premium (for individuals).
How much does Copilot cost in Australia?
Copilot Free costs nothing. For business, Microsoft 365 Business Standard with Copilot is approximately AUD $36–$38 per user per month (annual commitment). The standalone Microsoft 365 Copilot Business add-on is approximately AUD $28–$33 per user per month. For individuals, Microsoft 365 Premium (which replaced Copilot Pro) is approximately AUD $30–$33 per month. All AUD figures are indicative conversions from USD list pricing and may vary by reseller, contract type, and GST treatment. Always check Microsoft’s Australian pricing page before buying.
What's the difference between Copilot and Microsoft 365 Copilot?
Free Copilot is a general chat assistant that works on the open web. It cannot see your files or work data. Microsoft 365 Copilot is the business version, grounded in your organisation’s own data through Microsoft Graph. It can read your emails, documents, meetings and Teams chats to give answers that are specific to your work. Microsoft 365 Copilot also includes pre-built agents (Researcher, Analyst, Facilitator), priority access to the latest AI models, and enterprise data protection.
Is my personal data used to train the AI models?
Microsoft takes privacy seriously, and for Australian businesses this is governed by the Privacy Act 1988 and the Australian Privacy Principles. For those using the paid versions:
– Privacy Shields: Your prompts and responses are generally not used to train the underlying global AI models.
– Encrypted Sessions: Your interactions are kept secure within your specific Microsoft account.
Do I need a Microsoft 365 subscription to use Copilot Pro?
To get the most out of Copilot Pro, you do need an active Microsoft 365 Personal or Family subscription. While the AI will work on the web regardless, the specific features that allow it to assist you within Word, Excel, and Outlook are only available if you have a valid Microsoft 365 account linked to your profile.
Can I switch back to the free version after trying Copilot Pro?
Yes, you can cancel your Copilot Pro subscription at any time. If you decide to stop paying the monthly fee, your account will simply revert to the standard free version at the end of your billing cycle. You will still have access to the basic chat features on the web, but you will lose the AI buttons inside your Word and Excel apps.
What features are included in the Pro version that I won't find in the Free one?
Copilot Pro offers several advanced tools designed for power users and professionals. These include:
- Integration: Use AI directly within Word, Excel, PowerPoint, and Outlook.
- Enhanced Image Creation: Faster AI image generation with 100 “boosts” per day instead of just 15.
- Copilot GPT Builder: The ability to create your own custom AI assistants for specific tasks.
Can I share my Copilot Pro subscription with my family?
Currently, Copilot Pro is tied to a single Microsoft account. Even if you have a Microsoft 365 Family plan that you share with five other people, the Copilot Pro features will only appear for the specific individual who purchased the subscription. Each person in the family who wants the AI tools in their apps would need their own Pro license.
Is my personal data used to train the AI models?
Microsoft takes privacy seriously, under GDPR. For those using the paid versions:
- Privacy Shields: Your prompts and responses are generally not used to train the underlying global AI models.
- Encrypted Sessions: Your interactions are kept secure within your specific Microsoft account.
- Data Ownership: You remain the owner of any content or data the AI helps you create.