The short version
Microsoft’s main business plans include Microsoft Copilot Chat, a work-safe AI chat, at no extra cost2. On its own it mostly answers from the web and from files you give it, though inside Outlook it can also read your inbox and calendar1,3. For Copilot to work across all your email, files, chats and meetings by itself, you need the paid add-on, which Microsoft’s Australian page lists at AU$31.40 per user a month on a yearly plan, before GST12,4. Whichever version you use, Copilot only sees what the signed-in person can already open, so loose SharePoint sharing shows up in Copilot’s answers6,38. Microsoft says your prompts and work data aren’t used to train its foundation models6. Copilot now runs some features on Anthropic’s Claude models and on OpenAI-operated models, both switched on by default for most business customers, and an admin can turn either off7,8. ChatGPT and Claude both have official connections into SharePoint, OneDrive, Outlook and Teams59,71. Claude’s needs a Microsoft admin’s approval before anyone can connect, and ChatGPT’s needs one for many of its actions71,61,62. Google’s everyday Gemini app has no Microsoft 365 connection on its list, while its business product, Gemini Enterprise, has one88,82. Staff who pay for a personal Microsoft 365 plan can use that Copilot on work documents unless an admin switches it off52.
The plans
Microsoft 365 for business bundles Word, Excel, PowerPoint and Outlook with Teams, OneDrive, SharePoint and business email13. The business plans top out at 300 users across the whole family of business plans, and Microsoft points bigger organisations to its enterprise plans13.
The AI comes in two layers. Copilot Chat is included with eligible work accounts at no extra cost2. Work-grounded Copilot is a paid add-on, or comes built into the “with Copilot” bundles12.
Per user per month, in Australian dollars, excluding GST, as shown on Microsoft’s Australian pages on 15 October 202612,13. Microsoft says the GST-inclusive amount shows on the “Payment and Billing” page before you buy13.
| Plan | Paid yearly | Paid monthly | AI included | Source |
|---|
| Microsoft 365 Business Basic | AU$10.50 | AU$12.60 | Copilot Chat. Office apps on web and mobile only | 16,2 |
|---|
| Microsoft 365 Business Standard | AU$21.00 | AU$25.20 | Copilot Chat. Desktop apps included | 14,2 |
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| Microsoft 365 Business Premium | AU$32.90 | AU$39.48 | Copilot Chat. Adds advanced security and device management | 15,2 |
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| Microsoft 365 Apps for business | AU$15.80 | AU$18.96 | Desktop apps without Teams chat or calling. Not on Microsoft’s Copilot Chat eligibility list | 17,13,2 |
|---|
| Microsoft 365 Business Standard with Copilot | AU$35.20 | AU$42.24 | Copilot Business built in | 12 |
|---|
| Microsoft 365 Business Premium with Copilot | AU$47.90 | AU$57.48 | Copilot Business built in | 12 |
|---|
| Microsoft 365 Copilot Business (add-on) | AU$31.40, or AU$26.91 in the first year under a promotion | AU$37.68 | Add-on for an existing Business plan, up to 300 users | 12 |
|---|
- Each plan has a cheaper “no Teams” version. Paid yearly: Basic AU$8.10, Standard AU$16.10, Premium AU$28.10, Standard with Copilot AU$30.40, Premium with Copilot AU$43.1013,14,15,16.
- The Copilot Business promotion runs from 1 July to 31 December 2026. It’s only for existing customers on an eligible Business plan, needs an annual commitment, and the lower price applies to the first year only12.
- The Copilot plans have a one-month free trial. It needs a credit card and becomes a paid subscription unless you cancel during the trial12.
- Microsoft’s documentation site now calls the add-on “Microsoft Copilot Business”5. It can be added to Business Basic, Business Standard, Business Premium, Apps for Business and Teams Essentials5.
| Plan | Paid yearly, annual commitment, ex GST | AI | Source |
|---|
| Microsoft 365 E3 | AU$58.40 | Copilot Chat. Copilot add-on AU$44.90 per user a month, paid yearly | 18 |
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| Microsoft 365 E5 | AU$89.80 | Copilot Chat. Same Copilot add-on price | 18 |
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| Microsoft 365 E7 | AU$148.20 | Copilot included, plus Agent 365 | 18,39 |
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E7 became generally available on 1 May 2026. Microsoft describes it as E5 with Copilot and Agent 365 added, along with the full Entra Suite39.
| Plan | Price shown | AI | Source |
|---|
| Microsoft 365 Personal | AU$16.00 a month or AU$159.00 a year | Copilot in the desktop apps, with usage limits | 19 |
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| Microsoft 365 Family | AU$18.00 a month or AU$179.00 a year | The same AI, for the subscription owner only | 19 |
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| Microsoft 365 Premium | AU$33.00 a month or AU$329.00 a year | Heavier AI use, plus “agentic” research and analytics | 19 |
|---|
- On Family and Premium the AI belongs to the subscription owner and can’t be shared with the others on the plan19.
- Copilot in Excel on these plans needs AutoSave on, so the file has to be saved to OneDrive19.
- AI use on personal plans runs on monthly “AI credits”. Microsoft’s help page doesn’t give the amounts54.
- Researcher (covered below) comes with Microsoft 365 Premium and Pro, and isn’t in Personal or Family27.
- Microsoft brought AI features into Personal and Family in Australia and changed their pricing in October 202420. In November 2025 it apologised for not making clear that a cheaper “Classic” plan without Copilot was open to all subscribers20. It quoted Classic at A$11 (Personal) and A$14 (Family) a month including tax, and said Classic “may not receive new feature updates”20.
- The part that matters at work: someone with a personal plan can use their personal Copilot on a work document in Word, Excel, PowerPoint, Outlook or OneNote, unless the organisation turns that off52,53. See “Personal Copilot on work files” below.
- Microsoft raised list prices for most commercial suites from 1 July 2026. Its US-dollar table shows Business Basic going from US$6.00 to US$7.00, Business Standard from US$12.50 to US$14.00 and Apps for business from US$8.25 to US$10.00. Business Premium stayed at US$22.0021.
- Existing customers keep their current price until renewal21.
- Standalone Copilot and Teams products weren’t part of the change21.
- Alongside the increase, Microsoft said Business Basic, Standard and Premium would get Copilot Chat “enhancements”, rolling out from June 2026. Those are inbox and calendar awareness plus Word, Excel and PowerPoint agents21,22.
- The Australian prices in the tables above are what the pages showed on 15 October 202613,14,15,16,17. We didn’t find an Australian-dollar version of Microsoft’s before-and-after table.
What’s built in
Microsoft Copilot Chat A chat assistant for work. It can research and summarise from the web, write and rewrite, analyse files you upload, make images and run agents. It answers mainly from the web. It uses your organisation’s content when you hand it over: by pasting it in, uploading a file with the + button, or typing / to pick a file you already have access to. It can also reach work content through Outlook (next section) and through agents your organisation pays for by usage. A model picker offers Auto, Quick response and Think deeper.
- What it does
A chat assistant for work. It can research and summarise from the web, write and rewrite, analyse files you upload, make images and run agents1. It answers mainly from the web1,23. It uses your organisation’s content when you hand it over: by pasting it in, uploading a file with the + button, or typing / to pick a file you already have access to3. It can also reach work content through Outlook (next section) and through agents your organisation pays for by usage3. A model picker offers Auto, Quick response and Think deeper1.
- Where to find it
At copilot.cloud.microsoft, in the Microsoft Copilot app on web, desktop and mobile, inside Outlook and Teams, in the Edge sidebar, and as Word, Excel and PowerPoint agents inside Chat2. Signed in with a work account, you’ll see a “Work” label under your profile and a green shield, which marks enterprise data protection2,3. A label such as Copilot Chat (Basic) tells you which version you have1,2.
- Plans and cost
No extra cost for work or school accounts on eligible plans. The list includes Business Basic, Business Standard, Business Premium, E3, E5, E7 and Teams Essentials2. Without the paid licence you get “standard access”, which Microsoft says “may be temporarily restricted” when demand is high24. Agents built only from instructions and public websites are free31. Agents that read shared company content, such as SharePoint, are billed by usage and start switched off. The billing runs through an Azure subscription31,13.
- On by default, and who controls it
It’s pinned in the Microsoft 365 apps by default for most eligible users2. An admin with the AI Administrator role can change that under Copilot > Settings > Pin Microsoft Copilot Chat56. Since January 2026 the pin setting no longer controls the Copilot app itself56,2. Unpinning doesn’t remove access either2. Admins can block Copilot Chat for everyone or for chosen users and groups2. They can also show blocked users a company policy page, set under Copilot > Settings > View all > Custom link for blocked Microsoft Copilot app2. Web searching is controlled by the Allow web search in Copilot policy. With it off, Copilot answers from the language model alone2. Copilot Pages and Notebooks are allowed by default, and admins control them through Cloud Policy57.
- Your data
Prompts and responses are processed inside the Microsoft 365 service boundary under enterprise data protection, and aren’t used to train the underlying foundation models3. They’re logged and stored in Exchange so admins can audit and search them3. Files you upload are stored in your OneDrive3. When Copilot searches the web, it sends Bing a short query of a few words with no user or tenant identifiers3. Bing handles that query under the Microsoft Services Agreement, with Microsoft acting as an independent data controller3. The exact search queries show in the answer’s citations for 24 hours3.
- In Australia
Sold here in Australian dollars12. For tenants set up in Australia, Microsoft’s Product Terms commit to storing Copilot Chat interaction content at rest in Australia. Copilot Chat joined that commitment on 1 September 202510. Processing is a separate question. Microsoft says calls to the language model go to the nearest data centres but can move to other regions under heavy load3. It also says customers outside the EU “may have their queries processed in the US, EU, or other regions”6.
Copilot Chat in Outlook Inside Outlook, Copilot Chat can answer questions about your emails, calendar, meetings and chats, plus a limited set of files. It can also act in Outlook: drafting an email, scheduling a meeting, flagging unread emails or setting up an automatic reply. The files it can reach are your OneDrive, files from SharePoint sites you visit often, files shared directly with you, and files you’ve viewed, edited or created.
- What it does
Inside Outlook, Copilot Chat can answer questions about your emails, calendar, meetings and chats, plus a limited set of files3. It can also act in Outlook: drafting an email, scheduling a meeting, flagging unread emails or setting up an automatic reply25. The files it can reach are your OneDrive, files from SharePoint sites you visit often, files shared directly with you, and files you’ve viewed, edited or created3.
- Where to find it
Sign in to Outlook with your work account and select the Copilot button near the top of the app25. Microsoft’s help page lists Outlook for Microsoft 365 on Windows and Mac, and the new Outlook for Windows25.
- Plans and cost
No add-on needed for this limited version25,1. With the paid licence it reaches more of your organisation’s data25.
- On by default, and who controls it
It follows the Copilot Chat settings above2.
- Your data
It finds your content with a simpler keyword index. The full semantic index and Work IQ are for licensed users only3. It respects existing Microsoft 365 permissions1.
- In Australia
Same storage and processing position as Copilot Chat10,6.
Copilot in Word, Excel, PowerPoint and OneNote For users with in-app access but no add-on, Microsoft lists: drafting, rewriting and summarising in Word; analysing data and creating formulas and visuals in Excel; building and editing decks in PowerPoint; drafting plans and lists in OneNote; drafting and summarising email in Outlook; drafting questions in Forms. The Word, Excel and PowerPoint agents inside Copilot Chat can create new files. PowerPoint files are saved to your OneDrive, and Word and Excel files come back as downloads. In “Edit with Copilot”, users can choose Claude where the admin allows Anthropic models.
- What it does
For users with in-app access but no add-on, Microsoft lists: drafting, rewriting and summarising in Word; analysing data and creating formulas and visuals in Excel; building and editing decks in PowerPoint; drafting plans and lists in OneNote; drafting and summarising email in Outlook; drafting questions in Forms4. The Word, Excel and PowerPoint agents inside Copilot Chat can create new files. PowerPoint files are saved to your OneDrive, and Word and Excel files come back as downloads3. In “Edit with Copilot”, users can choose Claude where the admin allows Anthropic models7.
- Where to find it
Inside each app. A label shows your version: Microsoft 365 Copilot (Premium) for the paid licence, Microsoft 365 Copilot (Basic) for standard access without it, and Copilot Chat (Basic) where in-app Copilot isn’t available1,4.
- Plans and cost
Microsoft says the in-app experience “might vary” with your licensing and tenant setup1. The paid licence gives priority access and grounds answers in your work data4. Business Basic only has the web and mobile Office apps16.
- On by default, and who controls it
If an admin turns off the privacy setting for connected experiences that analyse your content, Copilot stops working in Word, Excel, PowerPoint, Outlook and OneNote6.
- Your data
The same commitments as Copilot generally. No foundation-model training, and only content the user can already access6,1.
- In Australia
Microsoft notes availability in its apps “may vary by market and customer licensing”12.
Copilot in Teams meetings Summarises the discussion, including who said what, and suggests action items. You can also ask it questions during or after the meeting. Microsoft’s overview lists meeting summaries (up to 30 days) and transcription among the in-app features available without the add-on.
- What it does
Summarises the discussion, including who said what, and suggests action items. You can also ask it questions during or after the meeting26. Microsoft’s overview lists meeting summaries (up to 30 days) and transcription among the in-app features available without the add-on4.
- Where to find it
In a meeting, select Copilot in the meeting controls26. The organiser sets it in the meeting scheduler under Online meeting options > Copilot and other AI. There, Allow Copilot and Facilitator can be set to During and after the meeting, Only during the meeting or Off26. Choosing Off also turns off recording and transcription for that meeting26.
- Plans and cost
Intelligent recap comes with the Teams Premium add-on or a Microsoft Copilot licence26. Microsoft’s pricing page footnotes its Teams features with “Microsoft Teams license required”12.
- On by default, and who controls it
The organiser controls Copilot for their own meetings, even without a licence26. To ask Copilot about a meeting afterwards, live transcription has to be on during it26.
- Your data
With Only during the meeting, untranscribed speech-to-text data and Copilot conversations are gone once the meeting ends26. Teams chat messages are covered by Microsoft’s Australian data-at-rest commitment10.
- In Australia
No Australia-specific limits stated. Microsoft notes Copilot won’t work in meetings hosted outside the participant’s organisation26.
Microsoft Copilot (the paid licence) Answers across the emails, meetings, calendars, chats, documents, sites and files you have permission to open. It uses Microsoft Graph, Work IQ and a semantic index to find that material without you uploading it. Microsoft says Work IQ can be turned off, and answers then aren’t enriched with your work context. It adds Copilot Search across Microsoft 365 and connected outside sources. Microsoft says Work IQ includes “Copilot Memory” to learn your style and preferences.
- What it does
Answers across the emails, meetings, calendars, chats, documents, sites and files you have permission to open1. It uses Microsoft Graph, Work IQ and a semantic index to find that material without you uploading it4. Microsoft says Work IQ can be turned off, and answers then aren’t enriched with your work context4. It adds Copilot Search across Microsoft 365 and connected outside sources4. Microsoft says Work IQ includes “Copilot Memory” to learn your style and preferences12.
- Where to find it
copilot.cloud.microsoft, the Microsoft Copilot app, and the Office apps4.
- Plans and cost
For Business plans it’s Microsoft 365 Copilot Business: AU$31.40 per user a month paid yearly or AU$37.68 monthly, ex GST, for up to 300 users12. Microsoft lists it with Copilot in the Office apps and Teams, the Researcher, Analyst and Facilitator agents, adoption analytics and “LLM model choice”12. On enterprise plans the add-on is AU$44.90 a month paid yearly18. The licence includes SharePoint Advanced Management, the oversharing toolkit covered under “What to watch for”36,37.
- On by default, and who controls it
An admin assigns licences in the Microsoft 365 admin center5. Microsoft’s Copilot controls cover pinning, image generation, agents, web search and removing access4. Microsoft suggests the AI Administrator role so the job doesn’t need a Global Administrator4.
- Your data
Microsoft says prompts, responses and data reached through Microsoft Graph aren’t used to train foundation models6. Copilot only shows organisational data the user has at least view permission for6. Microsoft says Copilot has opted out of the human-review abuse monitoring that Azure OpenAI offers6. Interactions are stored as the user’s Copilot activity history. Admins can search them and set retention in Microsoft Purview6. Users can delete their own history from the My Account portal6,55.
- In Australia
Copilot has been part of Microsoft’s Product Terms data-at-rest commitment since 1 March 2024, and Australia is one of the covered locations10. In November 2025 Microsoft announced that Australian customers could have Copilot interactions processed in Australia by the end of 20259. An editor’s note dated 3 April 2026 moved that to the end of 20269.
Researcher and Analyst Researcher runs longer, multi-step research and returns a structured report with citations. It draws on the web and on the work files, emails, meetings and chats you can access. Analyst works on data you attach. It calculates statistics and picks out trends and outliers, with charts and tables where they help.
- What they do
Researcher runs longer, multi-step research and returns a structured report with citations. It draws on the web and on the work files, emails, meetings and chats you can access27. Analyst works on data you attach. It calculates statistics and picks out trends and outliers, with charts and tables where they help28.
- Where to find them
In the Microsoft Copilot app, under Agents, select Researcher or Analyst27,28. In Analyst, select + then Attach content to add files28. Microsoft also lists both under Tools in Copilot Chat32.
- Plans and cost
Researcher needs the Copilot add-on for business users, or a Microsoft 365 Premium or Pro personal subscription27. Analyst’s help page doesn’t name a licence, and Microsoft’s pricing lists both agents with Copilot Business28,12.
- On by default, and who controls it
Microsoft treats both as part of core Copilot chat, so the agent settings don’t apply to them32. Analyst’s help page says an admin may need to enable it28. Claude in Researcher only appears once an admin allows Anthropic models27.
- Your data
Microsoft says both run inside the Microsoft 365 commercial data-processing boundary32. When someone picks Claude, Anthropic does the processing as a Microsoft subprocessor (see “Claude and OpenAI models running inside Copilot”)7.
- In Australia
We found no Australia-specific statement on either help page27,28.
Agents: Agent Builder, the Agent Store and Copilot Studio Microsoft describes agents as custom versions of Copilot, set up with their own instructions and knowledge for a particular task. Copilot Chat users can build them in Agent Builder inside Copilot. Copilot Studio is the fuller tool for harder jobs.
- What they are
Microsoft describes agents as custom versions of Copilot, set up with their own instructions and knowledge for a particular task32. Copilot Chat users can build them in Agent Builder inside Copilot. Copilot Studio is the fuller tool for harder jobs31.
- Where to find them
People find and add agents from the Agent Store in the Microsoft Copilot app32. Admins see them on the Agents page and in the Agent Registry in the Microsoft 365 admin center32.
- Plans and cost.
- Agents grounded only in instructions and public websites cost nothing extra in Copilot Chat31.
- Agents that read shared company content, such as SharePoint or connector data, are billed by usage and are off by default for Copilot Chat users31.
- Turning on that billing means an admin links an Azure subscription through a billing policy, with optional budgets and email alerts34.
- Licensed Copilot users don’t need any of that31. For them, Copilot Studio agents used in Copilot, Teams or SharePoint for answers and Graph grounding are “zero-rated”36.
- Otherwise Copilot Studio runs on Copilot Credits. Unused monthly capacity doesn’t carry over, and going over can lead to “service denial”36.
- On by default, and who controls it
Under Agents > Settings > User access, the default is All users33. Agent and plugin access lets an admin block agents from outside publishers while still allowing Microsoft’s and the organisation’s own33. Sharing decides who can share Agent Builder agents across the organisation33. Agents published to the whole organisation need admin approval first32.
- Your data
Microsoft warns that data processed by non-Microsoft agents and plugins “isn’t subject to Microsoft agreements”33. Admins can see each agent’s permissions and terms under Integrated apps6.
- In Australia
No Australia-specific limits stated on the agent pages we read31,32,33.
Copilot Cowork Carries out tasks for you across Microsoft 365. It can send emails, schedule meetings, create documents, post in Teams, manage files, and run tasks on a schedule or when something arrives. It asks before sensitive actions. The approve button carries the action’s name, such as Send or Post, and a dropdown offers Always allow for the rest of that conversation.
- What it does
Carries out tasks for you across Microsoft 365. It can send emails, schedule meetings, create documents, post in Teams, manage files, and run tasks on a schedule or when something arrives29. It asks before sensitive actions. The approve button carries the action’s name, such as Send or Post, and a dropdown offers Always allow for the rest of that conversation30.
- Where to find it
Open copilot.cloud.microsoft and select Cowork in the toggle next to Chat30. It also works in Outlook and Teams30.
- Plans and cost
It needs a Microsoft Copilot licence with usage-based billing switched on30. It’s billed in Copilot Credits as you use it35, and Microsoft’s Australian pricing shows it as “Metered”12. It’s generally available for work accounts29.
- On by default, and who controls it
Admins manage spending under Copilot > Cost management35. Cowork can optionally use Anthropic models30.
- Your data
For tenants whose default location is Australia, Microsoft commits to storing Cowork prompts and responses at rest in Australia11. Working files and custom skills sit in OneDrive or SharePoint Embedded under those services’ own commitments11.
- In Australia
Available to Australian work tenants as far as the docs show11,29. Cowork for personal accounts is in preview in the US and Canada only54.
Claude and OpenAI models running inside Copilot Microsoft now runs some Copilot features on Anthropic’s Claude models and on models operated by OpenAI, with both companies acting as Microsoft subprocessors. Users can pick Claude in Researcher and in “Edit with Copilot” in the Office apps. Copilot Studio makers choose the model when they build an agent. Copilot shows an indicator when a Claude model is in use.
- What it is
Microsoft now runs some Copilot features on Anthropic’s Claude models and on models operated by OpenAI, with both companies acting as Microsoft subprocessors7,8. Users can pick Claude in Researcher and in “Edit with Copilot” in the Office apps. Copilot Studio makers choose the model when they build an agent7. Copilot shows an indicator when a Claude model is in use7.
- Where to find it
Admins: Microsoft 365 admin center, Copilot > Settings > View all > AI providers operating as Microsoft subprocessors7,8.
- Plans and cost
Microsoft says Anthropic models are only in “applicable Microsoft 365 licensed experiences”4. The pages we read mention no separate charge.
- On by default, and who controls it
Anthropic models are on by default for most commercial customers, with the EU, EFTA and the UK as the exceptions7. Australia isn’t on that list of exceptions, so on our reading they’re on for Australian business tenants unless an admin changes it7. OpenAI-operated models have been on for all users of eligible commercial customers since 24 July 2026, unless an admin picks No users8. An AI Administrator or Global Administrator can limit either provider to chosen users or groups, or turn it off7,8. Microsoft warns that some features stop working if you turn Anthropic off7. A separate class called “Anthropic models with Data Retention” stays off until an admin opts in. Microsoft’s examples are Claude Fable 5 and Claude Mythos 57.
- Your data
For the standard Anthropic models, Microsoft’s Product Terms and Data Protection Addendum apply, along with enterprise data protection7. The Data Retention models work differently. Anthropic stores most inputs and outputs for up to 30 days, can keep flagged content for up to two years, and Anthropic’s own commercial terms apply7. For OpenAI-operated models, Microsoft says OpenAI offers zero data retention for the Responses API that Microsoft uses, subject to limitations8.
- In Australia
Both providers are excluded from Microsoft’s in-country processing commitments where those apply7,8. That matters once Microsoft’s Australian in-country processing arrives, which it now expects by the end of 20269.
- Steps to switch Claude models on, or limit who gets them
From Microsoft Learn, updated 18 September 20267. You need the AI Administrator or Global Administrator role7.
- In the Microsoft 365 admin center, select Copilot > Settings > View all7.
- Select AI providers operating as Microsoft subprocessors7.
- Under Available subprocessors for your organization, select Anthropic, then Save7.
- Under Choose who can access Anthropic models for Copilot and generative AI experiences, pick the users or groups, then Save7.
To turn Claude off, the same page offers Disable Anthropic as a Microsoft subprocessor7. For OpenAI-operated models, select OpenAI on that page, then under Choose which users can access OpenAI operated models pick All users, chosen users and groups, or No users, and Save8.