Microsoft Copilot vs ChatGPT for business use
By the InTheory team · Updated November 2026
Short answer: If your firm lives in Outlook, Word, Excel and Teams, start with the Copilot Chat that eligible Microsoft 365 plans include, then add paid Microsoft 365 Copilot seats for the people who work in documents and email all day. ChatGPT Business is the stronger general-purpose workspace and connects to Microsoft 365, Google Workspace and Slack. Many firms trial both on the same workflow before committing.
| Microsoft 365 Copilot | ChatGPT Business | |
|---|---|---|
| How you buy it | Add-on to a Microsoft 365 business plan, or bundled Business Standard or Premium with Copilot | Per-seat workspace plan, Standard or Premium seats, for teams of 2 to 200 |
| Free starting point | Copilot Chat included at no extra cost with eligible Microsoft 365 plans | Free personal tier exists, but use the Business plan for company data |
| Works inside | Word, Excel, PowerPoint, Outlook, Teams | ChatGPT apps on web, desktop and mobile, with connectors to work tools |
| Uses company data | Grounded in your Microsoft 365 content you have permission to see | Through connectors to Microsoft 365, Google Workspace, Slack and others |
| Training on your data | Microsoft states business data is not used for AI training | OpenAI states no training on business data by default |
| Admin | Microsoft 365 admin center, existing permissions | Workspace admin, SAML SSO, usage analytics and spend controls |
| Main risk | Surfaces files people can access but should not, if SharePoint permissions are messy | Staff pasting client data without clear rules on what is allowed |
Fix permissions before you switch on Copilot
Copilot answers using the email, files and chats each person already has access to. In many small firms, SharePoint and OneDrive sharing has grown loose over the years. Before rollout, have your MSP review who can see HR folders, payroll exports and client files. Otherwise Copilot may summarize something to someone who should never have seen it.
Where ChatGPT Business tends to win
For drafting, research, analysis of uploaded files and building shared custom tools, ChatGPT is often the more flexible workspace. Firms that use Google Workspace, or a mix of systems, get less from Copilot's Microsoft-centric design.
For example, a marketing coordinator preparing a client report might pull figures from a spreadsheet, draft commentary and reuse a shared project, with a manager reviewing before it goes out.
Running a fair trial
Pick one workflow, like drafting a first reply to a new client inquiry. Give five people each tool for two weeks. Measure time per draft and how much each draft needed editing. Write a one-page policy first: what data is allowed, and that a person approves anything sent to a client.
Choose Microsoft 365 Copilot if
- Your firm runs on Microsoft 365 and Teams
- Most work happens in Outlook, Word and Excel
- IT wants to manage AI through existing Microsoft admin and permissions
- You want to start with the Copilot Chat already included in eligible plans
Choose ChatGPT Business if
- You use Google Workspace or a mix of tools
- You want a flexible general-purpose AI workspace
- Teams want to share projects and custom tools
- You prefer one AI workspace across many connected apps
Common questions
Is Copilot Chat the same as Microsoft 365 Copilot?
No. Microsoft describes Copilot Chat as a web-grounded assistant included at no additional cost with eligible plans. Microsoft 365 Copilot is the paid version that works inside Word, Excel, Outlook and Teams and uses your work data. Start with Chat to build habits, then license Copilot for heavy users.
Can we use both?
Yes, and some firms do. The risk is two sets of rules and two places where data goes. If you run both, write one AI use policy that covers each tool, and assign each a clear purpose.
Which is safer for client data?
Both offer business plans with admin controls and state that business data is not used for training by default. Safety depends more on your permissions, policies and staff training. Regulated firms should review vendor agreements and their own obligations before rollout.