Microsoft 365 Copilot vs ChatGPT for small business

If your business already runs on Word, Excel, Outlook, and Teams, Microsoft 365 Copilot is the better fit, because it works inside those apps and with your work files. If you don’t use Microsoft 365, ChatGPT is the easier place to start, with a free plan that includes unlimited text chats.

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Last checked: October 20, 2026

Side by side

	Microsoft 365 Copilot	ChatGPT
Free option	Copilot Chat, with eligible Microsoft 365 plans	Free plan, unlimited text chats
Business price	US$23.50/user/mo yearly, with Microsoft 365 Business Standard	Business plan. Price not shown
Add-on price	US$21/user/mo yearly	Not applicable
Works inside	Word, Excel, PowerPoint, Outlook, Teams	Office and Sheets add-ons
Team size	Business plans up to 300 users	Business from 2 users
Checked on	Oct 20, 2026	Oct 20, 2026

Prices are each maker’s regular list price in US dollars, read on the date shown. We never convert currencies. Prices are paid yearly. Microsoft was running a discount on the Copilot add-on that day, so we left it out.

Where Microsoft 365 Copilot wins

Inside your apps. Copilot works in Word, Excel, PowerPoint, Outlook, and Teams. Microsoft says it drafts documents, analyzes data, builds slide outlines, summarizes long email threads, and recaps meetings.
Uses your work files. Microsoft says Copilot’s chat is grounded in your work data, like emails, chats, documents, and meetings.
One bill for apps and AI. Microsoft 365 Business Standard with Copilot is US$23.50 per user a month, paid yearly, and includes the Office apps, business email, and Teams.
Privacy terms on the page. Microsoft says prompts and responses aren’t used to train the underlying models.

Where ChatGPT wins

A free plan for anyone. It includes unlimited text chats, with limited image creation, voice chats, uploads, and deep research.
No Microsoft 365 needed. It runs on the web and in iOS and Android apps.
Simple start for teams. The Business plan starts at 2 users.

The verdict

Pick Microsoft 365 Copilot if your team lives in Word, Excel, Outlook, and Teams and you want AI that works with your files there.

Pick ChatGPT if you don’t use Microsoft 365, or you want to start free with a general-purpose AI assistant.

Questions people ask

Is Copilot better than ChatGPT for business?
If you use Microsoft 365, Copilot works inside Word, Excel, Outlook, and Teams and with your work files. If you don’t, ChatGPT is easier to start, with a free plan.

How much does Microsoft 365 Copilot cost for a small business?
Microsoft 365 Business Standard with Copilot is US$23.50 per user a month, paid yearly. The Copilot add-on for an existing business plan lists at US$21 per user a month, paid yearly (checked October 2026). Some advanced features are billed by usage.

Is Copilot free?
Microsoft says Copilot Chat is included at no extra cost with eligible Microsoft 365 plans. Copilot inside Word, Excel, and PowerPoint needs a Copilot license.

Can Copilot work in Excel?
Yes. Microsoft says Copilot in Excel analyzes data, creates charts, and generates insights, with a Copilot license.

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