Microsoft has begun integrating Copilot Chat into Word, Excel, PowerPoint, Outlook, and OneNote for commercial Microsoft 365 users.
Copilot Chat is an AI-powered feature that allows users to interact with a virtual assistant directly within Office apps. Unlike Microsoft 365 Copilot, which has access to your organization’s internal files and content, Copilot Chat only works with information from the web—making it more limited, but also more accessible.
Microsoft states that Copilot Chat is included at no additional cost for certain Microsoft 365 users. However, it’s important to note that this only applies to those using Microsoft Entra accounts (formerly Azure AD) with active licenses for Microsoft 365, Office 365, Microsoft 365 Business, or Microsoft Teams.
If you want to know exactly which licenses grant access to this new feature in Office apps, Microsoft has outlined everything in this support document.
According to Seth Patton, General Manager of Product Marketing for Microsoft 365 Copilot, Copilot Chat is a secure, web-based AI assistant now integrated directly into Microsoft 365 apps. What’s interesting is that it understands the context of the file you’re working on, allowing it to tailor its responses to what you actually need—in real time.
“When you need it, you can open Copilot Chat in a side panel within the same file, and it’ll be ready to help you right where you’re working. That means less copying and pasting, fewer file uploads, and less switching between apps,” Patton explained.
And the best part: this feature is available at no additional cost for Microsoft 365 users with compatible licenses.
Read more: Microsoft Launches Copilot Appearance: The New AI Virtual Avatar
According to Seth Patton, Microsoft 365 users can further enhance their Copilot Chat experience by purchasing a Microsoft 365 Copilot license. This premium version unlocks advanced features, allowing the AI not only to understand the document you have open but also to access all your work data—from emails, meetings, and chats to personal and shared files within your organization.
“A Microsoft 365 Copilot license unlocks the most powerful version of Copilot Chat, reasoning not just over the file or email you have open, but across all your work data,” Patton noted.
Additionally, starting next month and through mid-November, Microsoft will begin automatically installing the Microsoft 365 Copilot app on Windows devices outside the European Economic Area (EEA) that have Microsoft 365 desktop apps installed.
That said, IT administrators will still have control: they can opt out of this automatic installation via the Apps Admin Center.
As part of its efforts to expand Copilot’s reach, Microsoft also announced that starting at the end of September 2025, Microsoft 365 Copilot agents will be available in the Edge browser sidebar. This will allow users to easily access Copilot while browsing or working online, without having to switch apps.
The integration of Copilot Chat in Microsoft 365 marks a turning point in how we work. Whether you make use of the free version included with your current license or decide to take the next step with the advanced Microsoft 365 Copilot version, having the right support makes all the difference.
At TecnetOne, we’re official Microsoft partners and can help you choose and acquire the Microsoft 365 Copilot license that best suits your company’s needs. We also provide guidance on implementation, adoption, and best practices so you can get the most out of this powerful AI tool.