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Microsoft 365 Copilot Blog
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Introducing Microsoft 365 Copilot Business: Empowering Small and Medium Businesses with AI

bryallen's avatar
bryallen
Icon for Microsoft rankMicrosoft
Nov 18, 2025

Running a small business means wearing a lot of hats. Now you can tap into the power of AI productivity to streamline your business operations. This week, at Microsoft Ignite, we’re announcing Microsoft 365 Copilot Business—an AI-powered productivity tool envisioned just for small- and medium-sized businesses.

Copilot for growing businesses

Microsoft introduced Copilot in 2023, and it quickly became an essential AI companion for companies worldwide. We heard from smaller companies that they wanted a version that would fit their needs and budgets, too. So we’re making that happen. Available worldwide on December 1, 2025, Copilot Business will bring all the same Microsoft 365 Copilot capabilities to you at an SMB-friendly price. All you need is a Microsoft 365 Business plan and fewer than 300 users.

Key features and functionality

Copilot Business delivers a unified experience, connecting across familiar tools like Word, Excel, PowerPoint, Outlook, and Teams. Work IQ -- the intelligence layer that enables Microsoft 365 Copilot to know you, your job, and your company inside and out, means that Copilot Business is AI that is truly ready for work, delivering personalized productivity gains. It automates routine tasks and surfaces valuable insights—while respecting your existing security, privacy, and compliance settings. Knowing your sensitive information is protected, you can adopt AI safely and confidently. No extra setup is required, and your data remains private and under your control.

Competitive advantage

More than just another AI tool, Copilot Business helps SMBs tackle real challenges so you can seize new opportunities. Its enterprise-grade AI empowers your team to automate emails, reports, and proposals, freeing up time for strategic work. Copilot includes Copilot Chat, Search, Pages, Notebooks, and customizable agents in a single, unified UI at no additional cost, making advanced AI accessible for your business.

For SMBs, every dollar counts

Copilot Business will be priced at a competitive $21 per user per month. You get the same powerful functionality at a price designed for growing businesses.

Image: Introducing Microsoft 365 Copilot Business

Choose the plan that fits your business

For the best value and to simplify purchasing, we’re taking it even further to help get you started by bundling Copilot Business with qualifying Microsoft 365 Business plans. Choose the best plan for your team:

  • Microsoft 365 Business Basic and Microsoft 365 Copilot Business. Get the essential web and mobile AI-powered apps your team needs to run your business with confidence, so you can make faster, more informed decisions.
  • Microsoft 365 Business Standard and Microsoft 365 Copilot Business. Everything in Business Basic, plus the full suite of desktop Office 365 apps as a single, integrated solution, for a more complete work experience from any device, anywhere.
  • Microsoft 365 Business Premium and Microsoft 365 Copilot Business. Everything in Business Standard along with the comprehensive security features and device management tools to protect your team and your customers as your business grows.

These bundles will be available on both Microsoft.com and through Microsoft Partners beginning December 1, 2025.

Get started at Ignite

Microsoft Ignite is the perfect place to learn more, connect with experts, and see Copilot Business in action. We’re here to guide you every step of the way, from onboarding your team to maximizing your investment. Attend the SMB session Scaling your small business with Microsoft 365 and Copilot on Friday, November 21 at 10:15 AM PST to learn more about what Microsoft can do for your business. And read articles curated just for SMBs on our Tech Community blog like this one.

Join the conversation

Join the conversation at Microsoft Events and share your feedback. Your feedback shapes the future of what we do for SMBs, and together, we can build solutions that truly empower businesses like yours.

Learn more, get involved, and let’s make history together with this new era of AI productivity, innovation, and growth.

Updated Nov 19, 2025
Version 4.0

11 Comments

  • DMFConsulting's avatar
    DMFConsulting
    Occasional Reader

    But all major/better AIs cost "up to" $20 ... why pay for more?... Also, if we already pay for the Microsoft 365 Business subscription (Basic or not), WHY pay AGAIN to have Copilot?...

    • JohnToland82's avatar
      JohnToland82
      Copper Contributor

      Because Business Basic gives you;

      Office Web Apps - Word Excel PowerPoint

      Teams, Outlook, SharePoint, OneDrive, and some basic security measures.

       

      THIS IS AI. this is a completely different solutions that works with what you have in Business Basic, Standard, Premium, and enables you to do so much more. and ITS cheap as chips. Its nothing.

      Why pay again. to be able to utilise the solution. If you don't want it don't pay. but you and your business will just be the next Nokia, Walkman or MP3 player.

       

  • 1_CarlyG's avatar
    1_CarlyG
    Copper Contributor

    Does the roll out from December 1st include UK customers? We often lag behind (sad times!). As a Business Standard user, can as an admin, simply change our package to benefit from the roll out?

  • peterkarpati's avatar
    peterkarpati
    Copper Contributor

    M365 Copilot Business has fully the same functionality as M365 Copilot?

    • bryallen's avatar
      bryallen
      Icon for Microsoft rankMicrosoft

      Yes, Microsoft 365 Copilot Business includes the same functionality as the Microsoft 365 Copilot license, just at a more affordable price. As mentioned in the blog, it does require a qualifying Microsoft 365 license and is limited to 300 seats.

      • ppekovic's avatar
        ppekovic
        Brass Contributor

        Deep reasoning agents are included? Like researcher and analyst?

  • Bart71's avatar
    Bart71
    Copper Contributor

    Good news. Will smb customers that already bought copilot licenses automatically be transferred on the new pricing ?

    • DMFConsulting's avatar
      DMFConsulting
      Occasional Reader

      Should be ... that the least a company must do for their <already> paid subscribers, huh?...

      • JohnToland82's avatar
        JohnToland82
        Copper Contributor

        No. they bought a license. the license they bought has a commitment term. They can change to the cheaper Copilot for Business at their renewal dates. I can't take my Car back to a dealer because 6 months later they have another of the same car showing as cheaper.

    • JohnToland82's avatar
      JohnToland82
      Copper Contributor

      Unlikely - The have term commitments on these plans as part of SME and will likely have to see out existing Terms. However on Renewal they can cancel and provision the new instead - Can bryallen​  confirm?

      • msp4msps's avatar
        msp4msps
        Copper Contributor

        This is confirmed in their faq here: https://learn.microsoft.com/en-us/partner-center/announcements/2025-november#next-steps

         

        "If a customer already has the $30 Microsoft 365 Copilot, can they switch to Microsoft 365 Copilot Business? 
        Not mid-term; they must fulfill the current annual commitment but can purchase 
        additional Copilot Business licenses at any time"