Is Microsoft Copilot worth it? | The Cost and Return on Investment (ROI)

When considering the cost and return on investment (ROI) of Microsoft Copilot, it’s essential to evaluate if this AI-powered productivity tool is worth the hype. As businesses and citizen developers are increasingly relying on Microsoft Copilot for M365. Understanding its integration with Microsoft 365 apps like Word, Excel, and PowerPoint becomes critical. From enhancing workflow automation to speeding up tasks, Copilot in Microsoft 365 offers advanced features like GPT-4 models and Microsoft Graph integration.

But does it justify its monthly subscription cost? In this post, we’ll explore the potential benefits, costs, and efficiency gains that Microsoft Copilot delivers, along with how to maximize ROI using this tool.

Does Copilot enhance performance? To what extent? In an age of demanding returns, it’s vital to evaluate tools like Copilot and understand their true value. But don’t worry—we’re here to help you navigate and unlock Copilot’s potential.

What are the different Copilot offerings?

Before we dive into the intricacies of Copilot, let’s address the elephant in the room: the term “Copilot” has evolved to encompass various offerings, each catering to different needs and preferences. To ensure clarity, let’s break down the three primary Copilot options available today.

1. Copilot: Copilot for Windows and Copilot in Edge

Firstly, there’s the free version of Copilot, accessible via Microsoft Edge and soon on Windows 11 for eligible computers. Though it’s free, it has limitations. It doesn’t integrate with Office or Outlook, which might be a downside for heavy users. However, it excels in enterprise chat within Edge, offering web page summaries and information generation.

2. Copilot Pro

Next on the list is Copilot Pro, a newer and enhanced version that integrates seamlessly with Microsoft Office for a monthly fee of $20 (click here for more information on pricing). Think of Copilot Pro as the upgraded version, providing access to advanced models like GPT-4, capable of handling more data. It’s perfect for those heavily reliant on Microsoft Office, allowing easy document creation in Word, polished PowerPoint presentations, and streamlined Excel formulas. However, Copilot Pro mainly targets individual users seeking an enhanced AI experience, not businesses. For businesses, explore alternative options.

For a great video that showcases Copilot Pro, click here (38s).

3. Copilot for M365:

Last but certainly not least, we have Copilot for M365—the comprehensive solution designed to elevate productivity within the Microsoft Office suite and beyond. Priced at $30 per user per month, this offering goes beyond Office integration, leveraging the power of Microsoft Graph to access and reference company documents seamlessly (click here for more information on pricing).

However, it’s crucial to consider that Copilot for M365 comes with additional requirements, as users must already possess E3 or E5 licenses. While this option presents a higher upfront cost, its extensive functionality and seamless integration make it a compelling choice for organizations seeking to leverage generative AI within their workflow.

The Return on Investment of Microsoft Copilot for M365

In business investments, cost heavily influences decisions. Integrating tools like M365 Copilot can be pricey, deterring many organizations. But before you judge Copilot solely on cost, let’s explore its true value.

Initially, M365 Copilot’s licensing fees may seem daunting, especially for larger workforces. Each employee’s license can cost up to $87 per month (E5 and Copilot for M365 licenses), quickly escalating total expenses. However, it’s crucial to consider Copilot’s tangible benefits beyond the numbers.

Let’s break it down with a real-world scenario. Imagine you’re a customer service representative tasked with resolving customer claims primarily through emails. On average, you handle about 20 cases per day, completing approximately 3 cases every hour (20 minutes / case).

Now, I’ll spare you the complex calculations, but bear with me as we dive into some numbers. Microsoft’s own studies have shown that Copilot can reduce case resolution time by 12%, translating to significant time savings for users (for more info, click here). In our hypothetical scenario, this could mean shaving off roughly 2 minutes from each case, resulting in a substantial cumulative time savings over the course of a month.

Click here for additional Microsoft Copilot success stories!

But here’s where it gets interesting. Those 2 minutes a case compound over the course of days, week, and months and can result in up to 20 hours of time saved. Equal to 20 additional hours of labor—a valuable resource that can be reinvested into other critical tasks or initiatives. When you consider the potential cost savings of avoiding additional labor expenses, suddenly the extra $30 per user for Copilot doesn’t seem so exorbitant.

Employee Rate	Overall Cost (20 hours)
$20 / hour	$400
$30 / hour	$600
$40 / hour	$800
$$$ / hour	$$$$

Of course, it’s essential to acknowledge that these calculations are based on certain assumptions and may vary depending on various factors. However, even a modest improvement in efficiency, whether it’s 10% or even 5%, can yield tangible benefits that outweigh the upfront costs of Copilot.

In Conclusion

Beyond the monetary expenses, there’s also the investment of time and effort required to implement and train users on Copilot effectively. Fortunately, resources like our page provide valuable insights and tutorials to help you maximize the utility of Copilot and optimize your investment.

Before dismissing Copilot as too expensive, think about the potential returns it offers. With the right strategy, Copilot can revolutionize your workflow, boost productivity, and drive business success. Ready to unlock its full potential? Explore our tutorials and guides to see how Copilot can transform your organization.

Happy Developing!