Microsoft 365 Copilot: which of the two Copilot licences
Microsoft 365 Copilot
per user per month, excluding VAT
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Microsoft 365 Copilot is the enterprise AI assistant for Microsoft 365: it works inside the applications people already use, drafting and rewriting content and summarising documents, mail and meetings. It is an add-on to the enterprise plans rather than part of them, so Microsoft 365 E3 and E5 both require it separately; only Microsoft 365 E7 includes it. Two things distinguish it from Microsoft 365 Copilot Business, the small business version: it carries no 300 user cap, and it does not require one of the Microsoft 365 Business plans underneath. Choosing the wrong one of the two is the common mistake.
What it is
Microsoft 365 Copilot is the enterprise Copilot subscription. It brings AI assistance into the Microsoft 365 applications rather than into a separate tool.
Who it is for
Organisations on the Microsoft 365 enterprise plans, and any organisation above the 300 user ceiling that governs the small business Copilot licence.
Key capabilities
- AI assistance inside the Microsoft 365 applications
- Drafting and rewriting written content
- Summarising documents, mail and meetings
- No user cap
Which Copilot licence you need
This is the decision that matters, and the two products are easy to confuse because both appear in the catalogue.
- Microsoft 365 Copilot, this one. The enterprise subscription. No user cap, and no requirement for a Business plan underneath.
- Microsoft 365 Copilot Business. For organisations with fewer than 300 users. It requires a Microsoft 365 Business Basic, Standard or Premium licence on the same user, and it is capped at 300 users. Microsoft states it delivers the same AI features at a licence tier aimed at smaller businesses.
If the organisation is on a Business plan and under 300 users, Copilot Business is the applicable product. If it is on E3 or E5, or above 300 users, this one is.
Where it is already included
Only Microsoft 365 E7, which bundles Copilot with Microsoft 365 E5, the Microsoft Entra Suite and Agent 365. On E3 and E5 Copilot is an add-on, not part of the plan.
One governance consequence worth planning for
Copilot interactions produce audit records. Extended retention and advanced analysis of those records sits in Microsoft Purview Audit (Premium), which is in E5, or in the Purview Suite add-on for Business Premium. If Copilot is going into a tenant with an audit obligation, settle that before deployment rather than after.
What is the difference from Microsoft 365 Copilot Business?
Copilot Business is for organisations under 300 users, requires a Microsoft 365 Business Basic, Standard or Premium licence on the same user, and is capped at 300. This enterprise subscription has neither the cap nor the Business plan prerequisite.
Is Copilot included in Microsoft 365 E5?
No. On both E3 and E5 it is a separate add-on licence. Only Microsoft 365 E7 includes it, alongside the Microsoft Entra Suite and Agent 365.
Which one should a 200 person company on Business Premium buy?
Microsoft 365 Copilot Business. It attaches to their Business Premium licence and is within the 300 user cap. Microsoft states it delivers the same AI features.
Do Copilot interactions get audited?
Yes, and extended retention and analysis of those records sits in Microsoft Purview Audit (Premium), which is in E5 or in the Purview Suite add-on for Business Premium. Settle that before deployment if there is an audit obligation.
Does it work as a separate application?
No. It works inside the Microsoft 365 applications rather than as a standalone platform, which is the point of it.
- Vendor
- Microsoft
- Category
- AI
- Type
- SaaS
- Billing
- Monthly
- Commitment
- 1-Year
- Available terms
- 1-Year
- SKU
- MST-NCE-COP-C100
- 1You request the licence, or add it to the cart.
- 2I confirm price, term and seats, and check your VAT number in VIES. Businesses in the EU only.
- 3You pay before we provision, under the CSP Marketplace Terms. The invoice comes from Michal Jatczak, a sole trader registered in Malta, trading as ITSailor. Reverse charge for an EU VAT number that validates in VIES.
- 4Your authorised signatory accepts the Microsoft Customer Agreement before activation.
- 5I place the order with Pax8 within one business day of payment.
AvePoint tyGraph for Copilot Adoption
per licence per month, excluding VAT
Agent 365
Microsoft Agent 365 is the enterprise control plane for AI agents, extending Microsoft identity, security, and compliance controls to agents with centralized registry, observability, access control, and governance, integrated with Entra, Defender, Purview, and Microsoft 365 admin center to scale agentic AI with confiden
per licence per month, excluding VAT
Microsoft 365 Business Standard (No Teams) and Microsoft 365 Copilot Business
per licence per month, excluding VAT
Microsoft 365 Copilot Business
Microsoft 365 Copilot for Business
per licence per month, excluding VAT