×
Microsoft launches AI-powered Copilot Chat with new agents
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

Microsoft has introduced Microsoft 365 Copilot Chat, a rebranded AI chat experience offering agentic capabilities for businesses, with a consumption-based pricing model for advanced features.

The core offering: Microsoft’s latest AI chat platform builds upon its existing Copilot technology by incorporating new agent-based automation capabilities while maintaining core features like web-based information retrieval and document analysis.

  • The platform continues to utilize OpenAI’s GPT-4o model for processing user queries and generating responses
  • Users can upload files for summaries and analysis, as well as generate images for marketing purposes
  • The basic chat functionality remains free for business users, providing access to web-grounded information

Key feature – AI agents: The platform’s distinguishing element is its support for customizable AI agents, which can automate routine tasks and access organization-specific information.

  • IT administrators can create domain-specific agents using Copilot Studio
  • Agents can access data from both web sources and internal systems via Microsoft Graph or third-party connectors
  • Custom agents can perform tasks like providing customer information and monitoring relevant events

Pricing structure: Microsoft has implemented a hybrid pricing model that combines free basic features with usage-based charging for advanced capabilities.

  • Agent interactions are billed at $0.01 per message
  • Pre-paid packages are available at $200 for 25,000 messages per month
  • Microsoft Graph-based responses can consume up to 30 messages, costing $0.30 per interaction

Competitive positioning: The launch represents Microsoft’s strategic response to Google’s Gemini integration within Workspace applications.

  • Google offers Gemini features free within Workspace apps for customers paying $14 per user monthly
  • Microsoft’s full-featured Copilot integration within Office apps requires a $30 per user monthly subscription
  • Microsoft’s agent capabilities differentiate it from Google’s current offering, which lacks similar automation features

Market implications: This rollout addresses previous challenges with Microsoft 365 Copilot adoption while creating new opportunities for user conversion.

  • The free tier serves as an entry point for businesses hesitant about the full $30 per user subscription
  • The consumption-based model allows organizations to test advanced features without full commitment
  • The platform could appeal to businesses seeking customizable automation solutions while remaining cost-conscious

Looking ahead: While Microsoft’s approach offers unique advantages in automation and customization, the success of this tiered strategy will likely depend on businesses’ willingness to navigate the consumption-based pricing model and their specific needs for AI-powered workplace tools.

Microsoft launches Copilot Chat with AI agents; take that, Gemini!

Recent News

AI’s energy demands set to triple, but economic gains expected to surpass costs

Economic gains from AI will reach 0.5% of global GDP annually through 2030, outweighing environmental costs despite data centers potentially consuming as much electricity as India.

AI-generated dolls spark backlash from traditional art community

Human artists rally against viral AI doll portrait trend that threatens custom figure makers and raises questions about artistic authenticity.

The impact of LLMs on problem-solving in software engineering

Developing deep expertise in a specific domain remains more valuable than general AI skills as technology continues to reshape technical professions.