Microsoft introduces pay-as-you-go AI plan for corporate users

• Published On: 15 January 2025 at 18:54

Microsoft is launching Copilot Chat, a pay-as-you-go plan for corporate customers. This offering bundles several AI-powered productivity features for Microsoft 365, offering a more flexible pricing model than its current subscription-based plans.

Copilot Chat, powered by OpenAI's GPT-4o model, allows users to perform a variety of tasks, such as asking business-related questions, automating workflows, creating images, and summarising documents. These features were previously included in Microsoft 365 Copilot, an enterprise AI add-on priced at $30 per user per month.

In a blog post announcing the launch, Microsoft described Copilot Chat as a "powerful new on-ramp" to encourage AI adoption within organisations. The features are integrated into the Microsoft 365 Copilot app, which is a rebranding of the Microsoft 365 app and allows users to interact with AI to draft documents, collaborate on projects, and automate tasks using the Copilot Pages tool.

Microsoft is emphasising Copilot Chat's *task automation features*, which it refers to as "agentic." These tools enable users to create "agents" to perform tasks such as preparing account details for meetings or giving instructions to field workers. IT administrators can also create enterprise-wide agents, manage their deployment, and control access and security settings.

Agent pricing will be metered, though Microsoft has not disclosed specific costs. Some features of Microsoft 365 Copilot are not included in the plan, including prebuilt agents, advanced AI capabilities for Teams, Outlook, Word, Excel, and PowerPoint, as well as personalisation tools. It also lacks the new Copilot Analytics tool, which tracks AI usage across the entire company.The introduction of Copilot Chat appears to be a strategic move by Microsoft to entice businesses that are hesitant to use Microsoft 365 Copilot. By providing metered features, Microsoft hopes to generate incremental revenue from customers with basic AI needs while also incentivising them to upgrade to the full Microsoft 365 Copilot package.

Despite being adopted by nearly 70% of Fortune 500 companies, Microsoft 365 Copilot has encountered challenges. According to a Gartner survey, only 3.3% of IT leaders believe the tool adds significant value. Additionally, reports express concern about inefficiencies, high costs, and security risks.

In an internal memo, Microsoft CEO Satya Nadella acknowledged the challenges while emphasising the company's commitment to developing AI applications.