Copilot Naming Explained: Chat vs Licensed vs Personal

Overview

Microsoft has several products with “Copilot” in the name, and the branding keeps evolving. If you’re confused about whether you need a license, what the free version does, or how consumer Copilot differs from enterprise Copilot, you’re not alone.

This video untangles the naming confusion and explains the three main Copilot offerings you’ll encounter: consumer Copilot, free Copilot Chat (formerly BizChat), and licensed Microsoft 365 Copilot. Most importantly, you’ll understand the key distinction — what data each version can access — and why that matters for government work.

What You’ll Learn

• The Three Copilots: Consumer, Chat (free), and Microsoft 365 (licensed)
• Data Access Model: How licensing determines what Copilot can see
• Naming Evolution: Why Microsoft’s branding is confusing and what terms to use
• License Identification: How to know what you have access to
• Government Context: Which versions are available in GCC, GCC High, and DoD

Script

Hook

You open Teams and see “Copilot.” Your colleague mentions “Copilot Chat.” Your IT admin talks about “Microsoft 365 Copilot licenses.” Are these the same thing? Different things? Do you need to buy something?

Microsoft’s naming isn’t helping. Let’s untangle this.

The Three Copilots You’ll Encounter

There are three main Copilot offerings you need to know about.

First, consumer Copilot — that’s copilot.microsoft.com. It’s free for anyone with a Microsoft account. It works like ChatGPT, drawing on internet data, not your organizational data. It’s not designed for government work.

Second, Copilot Chat — formerly called BizChat. This is free for all M365 users with work accounts. It has limited access to organizational data — it can search the web and access public files you’ve shared, but it can’t read your emails or private documents. No license required. It’s included in your M365 subscription.

Third, Microsoft 365 Copilot — the licensed version. This requires a paid add-on license, roughly $30 per user per month. It has full access to YOUR organizational data through Microsoft Graph. This is what government agencies are evaluating and deploying.

The Key Difference: Data Access

The license determines what Copilot can see.

With Copilot Chat — the free tier — it can search the web and access public files you’ve shared, but it cannot read your emails, your private documents, or your meeting transcripts. It doesn’t have access to your organizational context.

With Microsoft 365 Copilot — the licensed version — it accesses all data you have permission to see. It reads your emails. It reads your documents. It listens to your meeting transcripts. It’s grounded in Microsoft Graph. This is the “AI assistant that knows your work” version.

Think of it this way: Copilot Chat is like asking a helpful intern who doesn’t have access to your files. Microsoft 365 Copilot is like having an assistant who can see everything you can see.

In government cloud environments — GCC High and DoD — consumer Copilot is blocked for security reasons. Copilot Chat availability varies depending on your tenant configuration. Microsoft 365 Copilot is the enterprise offering that’s been validated for government use.

Why the Naming Is Confusing

So why is this so confusing?

Microsoft has rebranded these products multiple times. What’s now called Copilot Chat started as “Bing Chat Enterprise,” then became “Copilot Chat,” and it’s sometimes called “BizChat” internally. The licensed version has always been called “Microsoft 365 Copilot,” but different teams use different shorthand.

And to make it worse, the icon looks the same across all these products.

The branding is still evolving. What matters is understanding the licensing model, not memorizing every name variant.

How to Know What You Have

Here’s how to figure out what you actually have access to.

Check your license assignments in the M365 admin center. If you DON’T have a Copilot license assigned, you can still use Copilot Chat — the free tier — but you won’t see Copilot embedded in Word, Excel, PowerPoint, or Outlook.

If you DO have a Copilot license, you’ll see Copilot embedded in all your M365 apps. You’ll have access to organizational data grounding. And your usage will appear in admin reports.

When someone says “Copilot,” ask: free tier or licensed? That’s the distinction that matters for planning and budgeting.

Sources & References

• Microsoft 365 Copilot Overview — Overview distinguishing M365 Copilot from other offerings
• Microsoft 365 Copilot Setup — Licensing requirements and setup
• Microsoft 365 Copilot Extensibility — Copilot branding and product family overview