How does Microsoft Copilot work?
Microsoft Copilot works by combining a large language model with live Bing search results and, in the work version, your company data. The LLM (GPT-4, then GPT-4o and later OpenAI models) writes the answer, while Bing grounding adds current web sources and citations. In Microsoft 365 Copilot, the assistant also reads emails, files, chats and meetings that the user is allowed to see.
The process has 3 steps: Copilot turns the prompt into search queries, retrieves web pages or work documents, and writes an answer with links to the sources it used.
History of Microsoft Copilot: key dates
Copilot grew from Bing Chat, Microsoft’s answer to ChatGPT, into one brand covering consumer and business products.
| Date | Event |
|---|---|
| 7 February 2023 | Bing Chat launches with the new Bing |
| 16 March 2023 | Microsoft announces Microsoft 365 Copilot |
| 1 November 2023 | Microsoft 365 Copilot becomes generally available for enterprises at 30 USD per user per month |
| 15 November 2023 | Bing Chat is renamed Copilot |
| 4 January 2024 | Microsoft announces a dedicated Copilot key for Windows keyboards |
| 15 January 2024 | Copilot Pro launches at 20 USD per month |
| August 2026 | Microsoft announces merging consumer Copilot and Microsoft 365 Copilot into one app |
Versions of Microsoft Copilot
Microsoft Copilot exists in three main versions aimed at consumers, workers and builders, and each one has a different data source and price.
Copilot (consumer)
The free assistant in Windows, Microsoft Edge, Bing and mobile apps. It answers questions, generates images, runs Deep Research and helps with shopping. Since February 2025 Copilot Voice and Think Deeper are free without limits.
Microsoft 365 Copilot
The paid work assistant inside Word, Excel, PowerPoint, Outlook and Teams. In Q4 of fiscal year 2026, Microsoft reported more than 30 million paid seats, double the 15 million reported in January 2026.
Copilot Studio
A low-code platform launched in November 2023 for building custom agents on company data.
Microsoft Copilot in SEO, AI search and advertising
Copilot matters to marketers because its answers cite web pages from the Bing index, so visibility in Bing now means visibility in AI answers too. Bing had 7.38% of the Polish search market in September 2026 according to Statcounter, and many Windows users meet Copilot before they ever open Google.
Copilot citations and Bing Webmaster Tools
On 10 February 2026 Microsoft added an AI Performance report to Bing Webmaster Tools. It shows how often your pages are cited in Copilot and Bing AI summaries, which pages get cited and which grounding queries triggered them. It measures citations, not clicks or rankings, and it is the most direct data source for Generative Engine Optimization on the Microsoft side.
Ads in Copilot
Microsoft Advertising shows ads inside Copilot answers. In March 2025 Microsoft announced Showroom ads, an immersive product experience, and said ad relevance in Copilot was 25% better than in traditional search. Ads are bought through the same Microsoft Advertising account as Bing search campaigns, which I manage as part of PPC management.
Microsoft Copilot vs ChatGPT
| Feature | Microsoft Copilot | ChatGPT |
|---|---|---|
| Company | Microsoft | OpenAI |
| Models | OpenAI GPT models | OpenAI GPT models |
| Web source | Bing index | Own search plus partners |
| Main strength | Windows and Microsoft 365 integration | Standalone assistant, broad features |
| Citation report for sites | Bing Webmaster Tools AI Performance | None official |
I use this data in AI SEO services to decide which pages to strengthen first.
Frequently asked questions about Microsoft Copilot
What is Microsoft Copilot used for?
Microsoft Copilot is used to answer questions, write and summarise text, analyse data and generate images. The Microsoft 365 version also works with emails, documents, meetings and chats at work.
Is Microsoft Copilot the same as ChatGPT?
No, Microsoft Copilot is a separate product from Microsoft, although it runs on OpenAI's GPT models. Copilot takes web sources from the Bing index and is built into Windows, Edge and Microsoft 365.
How much does Microsoft 365 Copilot cost?
Microsoft 365 Copilot launched for enterprises at 30 USD per user per month in November 2023. The basic consumer Copilot is free, and Copilot Pro launched at 20 USD per month in January 2024.
How can my website appear in Copilot answers?
Your website appears in Copilot answers when Bing indexes it and judges it a useful source. Verify the site in Bing Webmaster Tools, submit a sitemap and track citations in the AI Performance report.
Related terms
- Microsoft Copilot · Wikipedia
- Microsoft 365 Copilot Passes 30 Million Paid Seats as Cloud and AI Growth Power Record Quarter · UC Today
- Bing Webmaster Tools adds AI Performance report · Search Engine Land
- Microsoft's Copilot adds Showroom ads and Dynamic filters · Search Engine Land
- Microsoft Earnings: AI Business Hits $37Bn Run Rate as Copilot Passes 20 Million Seats · UC Today
- Search Engine Market Share Poland · Statcounter Global Stats
