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Alasdair's avatar
Alasdair
Copper Contributor
Mar 25, 2025

M365 Copilot Chat (work) not working in Teams

We have a number of users who are licensed for M365 Copilot, yet the Copilot in Teams is only showing the free chat version. The Work/Web toggle is not present, and it's defaulting to free (web).

This is also the case when accessing via www.microsoft365.com/chat

But M365 Copilot features are available in Word, Excel, PowerPoint etc. 

It must be some policy, but I'm not sure where to start to look. Any advise on where to start would be welcomed!

Licenses of affected users are assigned via Okta, and users not affected are not assigned through Okta. So that's a big clue, but why only Teams and web chat? 

Thank you. 

copilot in teams
troubleshooting

1 Reply

  • BeckettFrost's avatar
    BeckettFrost
    Iron Contributor
    Mar 27, 2025

    1. Confirmation of licenses and subscriptions
     Check if your organization has purchased Copilot
    Administrators need to check if a Microsoft 365 Copilot subscription exists in the Microsoft 365 Admin Center under Billing > Your Products.
     Assigning licenses to users
    The administrator goes to Users > Active Users, selects the target user, and ensures that a Copilot license has been assigned.
    2. Update or fix the Teams client
     Update Teams to the latest version
    Desktop: Click “...” > “Check for updates” in the upper right corner.
    Web: Using Edge/Chrome, press Ctrl+Shift+Delete to clear cache and retry.
    Mobile: Go to the App Store and update the Teams app.
     Logging back in or fixing Teams
    Log out of Teams and log back in.
    Windows users:
    Open Settings > Applications > Microsoft Teams > Repair.
    If this does not work, select “Uninstall” and reinstall. 
    3. Check policy restrictions (requires administrator action)
    Verify Teams application permission policies
    An administrator accesses the Teams Management Center:
    Navigate to Teams Application > Permission Policies and ensure that Copilot is not disabled.
    Check that the Messaging Policy allows AI functionality.
    Review Compliance Policies
    Check if Copilot is restricted due to Data Leakage Prevention (DLP) or compliance policies, and adjust the policies if necessary. 
    4. Additional troubleshooting steps
    Switch client or network environments
    Try switching from the desktop version of Teams to the web version (teams.microsoft.com).
    Change networks (e.g., use a cellular hotspot) to troubleshoot corporate network restrictions.
    5. Contact Microsoft Support
    If the above does not work, administrators can submit a support request through the Microsoft 365 Admin Center.

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