Two new updates to Microsoft 365 Copilot for Word: Smarter Creation and Researcher agent

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What’s New in Microsoft 365 Copilot for Word Microsoft continues to evolve its Copilot capabilities in Word, bringing powerful new features that enhance productivity and streamline workflows. Two newly announced updates are rolling out this fall: First out of the gate is the integration of the Researcher Agent, allowing great content generation within Word itself. The second update is bringing more of the search and creation capabilities we have in Chat directly into Word. These updates represent a meaningful step toward closing the functionality gap between Copilot in Word and Copilot Chat. For me, this is a most welcomed improvement, making it easier for end users to get the results they want even faster, with less friction and more flexibility. Deep Research with the New Researcher Agent in Word Not too long ago, Microsoft introduced the Researcher agent in Copilot Chat, but moving and editing that content required copy/paste and jumping between applications. With this coming update...

Microsoft 365 Copilot Chat - Pay As You Go

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Here is an update that really caught my eye this week. Microsoft is introducing Microsoft 365 Copilot Chat (BizChat) as a Pay-As-You-Go (PayG) service. This option will be available starting late January 2025, with full availability by mid-February 2025.

Key Highlights:
  • Flexible Access: Organizations can offer Copilot on company data without requiring individual licenses. However, a license is still needed for Copilot within applications like Outlook, Teams, and PowerPoint.
  • Controlled Costs: The PayG service is disabled by default and only activates after billing setup in the Microsoft 365 admin center, preventing unexpected expenses.
  • Easy Setup: To enable PayG billing, navigate to "Settings -> Org Settings" in the Microsoft 365 Admin Center. An Azure subscription and a dedicated Resource Group are required.
For more details on Azure subscriptions and Resource groups, refer to these articles:
  • Create your initial Azure subscriptions - Cloud Adoption Framework | Microsoft Learn
  • Manage resource groups - Azure portal - Azure Resource Manager | Microsoft Learn

The PayG model offers a low-cost entry point to Microsoft 365 Copilot Chat, ideal for testing or intermittent usage. It provides flexibility to scale usage based on actual needs, avoiding the cost of unused licenses. However, it's crucial to monitor usage to prevent unexpected costs, as PayG can be more expensive than fixed licenses if not managed properly. For consistent, high usage, a fixed license per seat may be more cost-effective.

Fixed licenses offer predictable costs and additional features, making budgeting simpler. While PayG is limited to the Chat application, it’s a great way to introduce Copilot into your organization.

It is going to be interesting to see if organizations embrace this new model, and how it potentially can drive the usage of generative AI even further within companies.