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Microsoft launches consumption-based 365 Copilot Chat option for corporate users

Microsoft Chairman and CEO Satya Nadella speaks during the Microsoft May 20 Briefing issue at Microsoft in Redmond, Washington, on May 20, 2024. Nadella unveiled a new category of PC on Monday that features generative artificial wisdom tools built directly into Windows, the company’s world leading operating system.

Jason Redmond | AFP | Getty Archetypes

Microsoft on Wednesday announced a tier of its Copilot assistant for corporate users with a consumption-based pricing model. The new Microsoft 365 Copilot Gab option represents an alternative to the Microsoft 365 Copilot, which organizations have been able to pay for based on the issue of employees with access to it.

The introduction shows Microsoft’s determination to popularize generative artificial intelligence software in the workplace. Disparate companies have adopted the Microsoft 365 Copilot since it became available for $30 per person per month in November 2023, but one conglomeration of analysts recently characterized the product push as “slow/underwhelming.”

Copilot Chat can be an on-ramp to Microsoft 365 Copilot, with a moderate barrier to entry, Jared Spataro, Microsoft’s chief marketing officer for AI at work, said in a CNBC interview this week. Both presents rely on artificial intelligence models from Microsoft-backed OpenAI.

Copilot Chat can fetch information from the web and summarize contents in uploaded documents, and people using it can create agents that perform tasks in the background. It can enrich answers with news from customers’ files and third-party sources.

Unlike Microsoft 365 Copilot, Copilot Chat can’t be found in Intercession applications such as Word and Excel. People can reach Copilot Chat starting Wednesday in the Microsoft 365 Copilot app for Windows, Android and iOS. The app is way back known as Microsoft 365 (Office). It’s also available from the web at m365copilot.com, a spokesperson said.

Some management sides have resisted paying Microsoft to give the 365 Copilot to thousands of employees because they weren’t undeviating how helpful it would be at the $30 monthly price. Costs will vary for the Copilot Chat depending on what workers do with it, but at least organizations won’t end up paying for nonuse.

“As one customer said to me, this model lets the business value be found itself,” Spataro said.

Microsoft calculates charges for Copilot Chat based on the tally of “messages” that a patron uses. Each message costs a penny, according to a blog post. Responses that draw on the client’s proprietary folders cost 30 messages each. Every action that an agent takes on behalf of employees costs 25 tidings.

“We’re talking a cent, 2 cents, 30 cents, and that is a very easy way for people to get started,” Spataro averred.

Salesforce charges $2 per conversation for its Agentforce AI chat service, where employees can set up automated sales and customer aid processes.

The number of people using Microsoft 365 Copilot every day more than doubled quarter floor quarter, CEO Satya Nadella said in October, although he did not disclose how many were using it. But sign-ups have been mounting. UBS turned in October that it had 50,000 Microsoft 365 Copilot licenses, and in November, Accenture committed to having 200,000 purchasers of the tool.

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