How to set up and use Microsoft Copilot
Copilot is Microsoft's AI assistant. There is a free chat version anyone can use, and a paid version that works inside the Microsoft 365 apps your team may already use every day: Word, Outlook, Excel, PowerPoint, and Teams. That second version is the reason many businesses choose Copilot, because the help shows up where the work already happens.
This guide covers the free chat, the Microsoft 365 version, and how to use Copilot inside the Office apps. We help teams set Copilot up and train staff to use it well, but the steps below cover what you need to get going on your own.
Step by step
- 1
Go to the official site or app store
Open copilot.microsoft.com in a browser, or install the official Copilot app from the Microsoft Store, Apple App Store, or Google Play. On recent versions of Windows, Copilot is often already available from the taskbar.
- 2
Sign in with a Microsoft account
Sign in with a personal Microsoft account for the free chat, or your work account if your organization has Copilot for Microsoft 365. The work account is what connects Copilot to your company files and email.
- 3
Try the free chat first
Use the standalone chat to get comfortable. Ask it to draft a message, explain a topic, or research a question, the same way you would with any AI assistant.
- 4
Decide if you need the Microsoft 365 version
The in-app Copilot for Word, Outlook, and Excel is a paid add-on, typically around thirty dollars per user per month on business plans. It is worth it when your team works in Office every day and wants help inside those apps.
- 5
Have an admin assign licenses
For the business version, an administrator assigns Copilot licenses to users in the Microsoft 365 admin center. Once assigned, Copilot appears inside that person's Office apps.
- 6
Open Copilot inside an Office app
In Word, Outlook, Excel, PowerPoint, or Teams, look for the Copilot button on the ribbon or side panel. Use it to draft, summarize, or analyze without leaving the app.
- 7
Give it your documents to work from
Ask Copilot to summarize a long email thread, draft a document from your notes, or pull trends from a spreadsheet. With the business version it can reference your own files when you point it at them.
- 8
Review settings and admin controls
Open the settings in the Copilot app or the admin center to review data handling and what Copilot is allowed to access. On business plans, the admin controls decide how it can be used across the team.
Free chat versus Microsoft 365 Copilot
It helps to keep the two versions straight. The free chat is a general assistant you can use without any company setup. The paid Microsoft 365 version is what works inside your Office apps and references your own documents and email.
The right choice depends on how your team works.
- Choose the free chat for general questions and drafting on the side.
- Choose Microsoft 365 Copilot when your team lives in Word, Outlook, and Excel.
- Only the business version can use your company's files and email as context.
- The business version requires admin license assignment before it appears.
Getting the most out of it
Inside the Office apps, the trick is to point Copilot at the right material. Tell it which document, thread, or sheet to use, then say what you want done with it, such as draft a reply that confirms the meeting or summarize the decisions in this thread.
Always read what it produces. Copilot can misread a spreadsheet or miss nuance in an email, so treat its output as a strong first draft and check anything that matters before sending.
Is it safe for business data?
The Microsoft 365 business version is designed to respect your existing permissions, so Copilot only sees files a given user already has access to, and Microsoft states it does not use that business content to train its models. This makes it a comfortable fit for company data when set up correctly.
The free personal chat does not carry those business protections, so keep confidential material out of it. Getting the licensing and admin controls right is one of the first things we handle when helping a team adopt Copilot.
Frequently asked questions
Is Microsoft Copilot free?
There is a free chat version anyone can use. The version that works inside Word, Outlook, and Excel is a paid add-on, typically around thirty dollars per user per month on business plans.
What is the difference between Copilot and Copilot for Microsoft 365?
The free Copilot chat is a general assistant with no company setup. Copilot for Microsoft 365 is the paid version that works inside the Office apps and can reference your own documents and email.
Is my data safe in Copilot?
The Microsoft 365 business version respects your existing file permissions and is not used to train Microsoft's models. The free personal chat does not include those business protections, so keep confidential material out of it.
Should I use the website or the app?
Both use your Microsoft account and work the same way for general chat. The real difference is the Microsoft 365 version, which lives inside your Office apps rather than a separate window.
Want Copilot set up properly across your business — or the whole workflow automated and your team trained? That's what we do.
Last reviewed June 12, 2026