Microsoft 365 is introducing a new add-on tier called Microsoft 365 Copilot Business, a lower-cost, small-business friendly version of its AI assistant for organizations from one to 300 users. Copilot Business has the same core AI capabilities found in the standard Copilot license, including smart writing, data analysis, and automation across Word, Excel, PowerPoint and Outlook. But at a more accessible price point to put enterprise-grade AI tools viable for small and medium-sized businesses, freelancers, and tiny teams that previously avoided Copilot due to cost or seat-minimum constraints.
Microsoft 365 Copilot Business is a new add-on license that brings the full “Microsoft 365 Copilot” experience (in Word, Excel, PowerPoint, Outlook and Teams, plus agents) to customers on the Business plans – at a lower price and with no 300-seat minimum.
Until now, Copilot for these small business plans was way too expensive, assuming it was available at all.
What is Microsoft 365 Copilot Business?
Copilot Business is a per-user add-on license that puts Copilot AI inside your Microsoft 365 apps:
- Copilot in Word, Excel, PowerPoint, Outlook and Teams (the same capabilities that previously required the $30 “Microsoft 365 Copilot” license).
- Copilot Chat that can see your work data (SharePoint, OneDrive, email, calendars, etc.), not just the public web.
- Agents and Copilot Studio – you can create and use AI “agents” that automate processes like onboarding, reporting or customer follow-up.
Microsoft have confirmed that Copilot Business has the same functionality as the standard Microsoft 365 Copilot licence, just at a lower small business price and available to all with a Business plan, including a single user setup.
Pricing – how much does Copilot Business actually cost?
There are two main ways to pay for Copilot Business:
Stand-alone Copilot Business add-on
Copilot Business shows as:
List price: US$252 a year which Microsoft promotes as USD $21 per user per month (but an annual commitment)
Promotion window
Launch promotion (limited-time):USD $18 per user per month, about a 15% discount, really $216 for a year.
Microsoft partner and promotion docs show the standalone Copilot Business promo running from 1 December 2025 to 31 March 2026.
As usual, all prices are before local taxes and can vary by region and currency.
Requirements
To buy Microsoft 365 Copilot Business, you need:
A qualifying Microsoft 365 Business subscription
Microsoft’s licensing documentation lists these base plans for the Copilot Business license:
- Microsoft 365 Business Basic
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium
- Microsoft 365 Apps for Business
It also works with the “no Teams” versions of those plans – Microsoft explicitly notes that customers without Teams in their subscription can still buy Copilot licenses.
Seat limit: up to 300 users
Copilot Business is designed for small and medium organizations. It’s available for tenants with just one user up to 300 users on the Business plans.
If you have more than 300 users, you’re pushed into the standard Microsoft 365 Copilot (the $30 enterprise add-on) instead.
Commercial / work accounts only
Copilot Business is a commercial add-on – it’s tied to Microsoft Entra work or school accounts, not personal Microsoft 365 Family/Personal subscriptions.
For the ‘full’ Copilot with consumer plans, you need Microsoft 365 Premium.
Bundles with Microsoft 365 Business plans
If you’re buying a new Microsoft 365 Business subscription, Microsoft is heavily pushing bundles that include both the Business plan and the Copilot Business add-on.
The combined prices (Business plan plus Copilot Business) currently are:
- Business Basic + Copilot Business: Basic $21USD
- Business Standard + Copilot Business: $30.50 USD per user per month at list price.
- 35% discount until 31 March 2026 for 1- to 300 licences.
- Business Premium + Copilot Business: $43 USD per user per month at list price.
- 25% discount until 31 March 2026 for 1- to 300 licences.
How is this different from the old $30 Copilot licence?
Before Copilot Business, organizations effectively had just one “full fat” option: Microsoft 365 Copilot at USD $30/user/month – originally launched with a 300-seat minimum and aimed at larger enterprises.
Now:
- Enterprise customers can still buy the $30 pcm Copilot license.
- SMBs (≤300 users) can instead buy Copilot Business at $252 a year (or $216 during the promo), with the same features, provided they have a qualifying Business-level subscription.
There’s one small catch for early adopters:
- Customers already on the $30 Copilot license generally can’t just switch mid-term – official partner FAQs say you must finish the current annual commitment, then move to Copilot Business at renewal (though you can buy new Copilot Business licences alongside existing ones).
Do you actually need to pay for Copilot Business?
Some quick perspective before you rush to the Buy button:
Copilot Chat might already be “good enough” for some people
If staff mostly ask general “how do I…” questions or do light drafting that doesn’t need direct access to your work files, the included Copilot Chat (free with eligible Microsoft 365 subscriptions) might cover their needs.
Copilot Business is for people who live in Office apps
The add-on starts to make sense for users who spend most of their day in Word, Excel, PowerPoint, Outlook or Teams, and whose output is measurable – e.g. proposal writers, analysts, project managers, sales and customer-service staff.
It increases your Microsoft 365 bill
Even at the discounted $18, Copilot Business is often more than the underlying Business license itself in many regions. And Microsoft has already announced upcoming price rises for Microsoft 365 Business plans in July 2026, so your base licenses will get more expensive too.
If you write, analyze or present for a living inside Microsoft 365, Copilot Business is now the “less painful” way to get the full Copilot experience – but it’s still a significant line item on the monthly bill, and deserves the same close scrutiny as any other business expense.
Microsoft 365 Premium: Copilot AI, new Features & Pricing Explained
