Microsoft Copilot Chat
How It Works, Where to Use It & What’s New

If you’ve used generative AI tools like ChatGPT or Copilot in your browser, you’ve likely seen the power of language models to summarise, draft, and explain information. But Microsoft Copilot Chat goes a step further by bringing that functionality directly into the tools businesses already use every day such as Word, Excel, Outlook, Teams, and more.
With the introduction of Microsoft 365 Copilot Chat, Microsoft has taken a significant leap toward embedding intelligent, context-aware assistance into the heart of enterprise productivity. This isn’t a standalone chatbot, it’s a system-level capability designed to help professionals work faster, focus better, and make decisions with confidence.
At Utilize, we’re always looking at how tools like this can bring practical value to our clients. Below, we break down how Copilot Chat works, where it fits into your workflow, and whether it lives up to the hype.
A Closer Look at Microsoft 365 Copilot
Copilot Chat is more than just a conversational AI embedded in Microsoft apps. It’s designed to serve as a contextual work assistant, drawing on your organisation’s Microsoft 365 data – including emails, documents, calendars, and chats – to generate responses that are specific, secure, and useful.
Integration with Microsoft 365 Apps
One of the standout features of Copilot Chat is its deep integration with Microsoft 365. Rather than switching to a separate window or app, you can engage with Copilot Chat directly inside the application you’re working in.
- In Word, you can ask it to summarise a lengthy report or suggest edits to make your writing more concise.
- In Excel, it can explain complex formulas, generate charts, or help spot trends in your data.
- In Outlook, Copilot Chat can draft replies, summarise long threads, or help you catch up after time away.
- In Teams, it can recap meetings, flag action points, or suggest responses in real time.
What makes this especially powerful is that Copilot understands the context you’re working in, so you’re not just getting generic answers; you’re getting insights tailored to your actual files, communications, and tasks.
Using Bing Chat Enterprise for Secure Conversations
Copilot Chat is built on the same foundation as Bing Chat Enterprise, which means enterprise-grade security and compliance are baked in from the start.
When using Copilot in a business environment:
- Your data is protected. Microsoft does not use your company’s inputs or outputs to train its foundation models.
- Chat history is encrypted and private to your tenant.
- User prompts and documents stay within your Microsoft 365 environment, which meets the compliance standards already in place for enterprise use.
This focus on data privacy and control is a key difference between Copilot Chat and many public-facing generative AI tools. For regulated industries or security-conscious teams, this can be the deciding factor.
Potential of GPT-4 Turbo for Copilot
Under the hood, Copilot Chat runs on GPT-4 Turbo, a highly optimised version of OpenAI’s large language model. This allows it to:
- Understand complex prompts more accurately
- Respond faster and with more relevance
- Reference longer histories of content within the same chat
The use of GPT-4 Turbo means Copilot Chat is fast, responsive, and capable of delivering enterprise-ready results even in high-demand environments.
It’s worth noting that the performance of Copilot also depends on the licensing level (e.g., Microsoft 365 E3, E5, or Business Premium) and the specific Copilot plan your organisation subscribes to.
Microsoft Copilot Chat: A Game-Changer or Overhyped?
Any new technology marketed as transformative deserves a healthy dose of scepticism. So is Copilot Chat really a game-changer or just a nice-to-have productivity boost?
Here’s a balanced look at what it does well and where expectations should be managed.
What It Does Well
- Accelerates repetitive tasks: Drafting emails, summarising meetings, or generating reports becomes significantly faster.
- Reduces context switching: By embedding directly in Microsoft apps, users spend less time moving between tools.
- Boosts decision-making: With access to your calendar, inbox, and documents, Copilot can quickly surface the right data for better choices.
- Enables smarter onboarding: New team members can use Copilot Chat to get up to speed on projects or understand complex documents without needing to ask colleagues.
For teams dealing with information overload, Copilot Chat can serve as a practical assistant — helping you make better use of the tools and data you already have.
Where It Needs Thoughtful Use
- Not a replacement for expertise: While it can assist with tasks, Copilot shouldn’t be used to make business-critical decisions without human review.
- Depends on quality of your content: If your internal documents or emails are vague or poorly structured, Copilot will reflect that.
- Still learning in complex environments: Copilot is impressive, but not infallible. Complex data queries or subtle business logic might require additional user input or correction.
In short, Copilot Chat is a valuable assistant, not an autonomous worker. Businesses that approach it as a complement to human skills, rather than a substitute, will get the most from the tool.
What’s Next for Microsoft Copilot Chat?
Microsoft has been clear that Copilot Chat is just the beginning. The broader strategy includes:
Expanded integration with Power Platform, allowing Copilot to build Power Automate flows or help design Power Apps with simple prompts.
More domain-specific Copilot features, such as those being added to Dynamics 365, Viva, and other enterprise tools.
Greater cross-app understanding, so Copilot Chat can synthesise information across multiple systems in real time.
This forward momentum suggests Copilot is not just a short-term productivity boost, but a cornerstone of Microsoft’s long-term vision for AI-powered work.
Final Thoughts: Making Copilot Work for Your Business
The introduction of Microsoft Copilot Chat marks a significant step in making AI more accessible, usable, and secure for business environments.
It empowers employees to get more done in less time, improves how teams engage with information, and supports better decision-making, all within the familiar Microsoft 365 ecosystem.
But like any tool, its value depends on how it’s implemented and supported. That’s where we come in.
As a Microsoft solutions partner, Utilize helps businesses:
- Understand the licensing and access requirements for Copilot
- Train staff on best practices and responsible use
- Integrate Copilot Chat into existing Microsoft 365 workflows
- Assess whether your business data is ready for context-aware AI
If you’re exploring how to bring Copilot Chat into your organisation, or how to make the most of the AI tools already available in Microsoft 365, we’re here to help.
Let’s Get You Started
Want help planning your Microsoft 365 AI strategy?
Not sure if Copilot is right for your team?
Need support with Microsoft 365 integration or security?
Book a no-obligation Microsoft 365 Copilot Chat demo with our team to see if it’s right for your organisation.
Let’s start with a conversation. Intelligent tools work best when they’re implemented with intention and that’s where Utilize makes the difference.