In a move that perhaps comes as no surprise, Microsoft has revealed a small $3 price increase per use (the first in 12 years) but is including Microsoft 365 Copilot (previously a $20 add on) to these subscriptions, which enables users to leverage Copilot in Office apps without needing a separate Copilot Pro subscription. But there is catch… See later.
I’ve not seen UK pricing as yet, but starting soon, consumers will soon see a new price of $9.99 per month for Microsoft 365 Personal and $12.99 per month for Microsoft 365 Home.
It’s not actually about Copilot through…
Oddly, Microsoft says the price increase is not actually about Copilot inclusion buy it more about aligning the prices with new features that have been added over the years such Microsoft Designer and Clipchamp, both of which have extensive AI capabilities.
Or is it…
Microsoft are offering anyone who’d rather stick to the old plan the option to buy what they new call their “classic sub tier which won’t include Copilot, but just a limited time. This, I believe will be offered as a downgrade option but will only be available for a limited time.
So… If the classic tier doesn’t include Copilot… Is the price hike about Copilot or not.. What do you think?
So what is included for Copilot in Personal and Home subscriptions?
With the introduction of Copilot, Microsoft 365 apps are getting a significant upgrade. Here’s a breakdown of the new features you will get
Word
Here we get Draft and Chat capability in Word. In draft mode you can create/ generate text from within the Copilot pane directly in Word. This works for new and existing documents and also allows your to rewrite taxt, expand on it, condense it and more. Chat mode on the other hand acts as your Word AI assistant. It can summarise and explain text, paragraphs or whole documents, suggest changes and also. Help you discover Word features such as formatting or just help you to learn new features.
PowerPoint
Here we get similar capabilities to Word. Copilot can create, restructure, change and enhance PowerPoint presentations from scratch based on user-provided criteria. It can also analyse existing Word documents (and other uploaded files) and generate a complete presentation from the information contained within it.
Excel
With most people using just a tiny fraction of what Excel can do, Copilot in Excel will help anyone analyse tables, highlight data correlations, suggest and help with new formulas based on your natural written queries, and can also generate insights to help you better reason over tables data and even entire workbooks. It is also really great for helping you format and organise data, create visualisations, and even teach you (or write) formulas for you.
OneNote
One of my favourite apps, Copilot here can assist in drafting ideas, plans, and organising information within your Notebooks. Copilot can also format content and create lists according to your criteria. What’s great is it can also do the woith your hand written notes (for those like me that use OneNote on my tablet). I find it great for handwritten meeting notes or interviews in that Copilot can then write my notes up professionally for me!
Outlook
Load of useful abilities for Copilot here in Outlook and one I think most people will use alot. Copilot in Outlook can summarise emails from friends, family, and colleagues which is nice for long email chains you have just been forwarded!
It’s also great for helping you to draftnand write an ew email or response to an email based on specific tones, lengths, and formats you set.It can also help coach you by reviewing what you have written and suggesting changes.
Copilot can pull information from other emails to provide context in threads, making it useful for managing multiple email chains.
What about Copilot Pro?
Despite the price increase, Microsoft is limiting Copilot usage under the Home and Personal subscriptions through monthly AI credits which are automatically applied to your account and reset each month (think mobile data tarrifs). They have not yet shared (that I have seen anyway) how many AI credits will be given each month.
Microsoft also offers Copilot Pro which is currently $20 /£19 a month which brings the same features as above but gives unlimited access to Copilot in Office, plus what they call boosts for image creation in tools like Designer.
I’m hoping this also gets a price reduction as it suddenly seems quite pricey for the additional capacity rather than entire features.
Conclusion.. Yes please!
To me I can’t wait to see this come to Family accounts because for me today, if I want Copilot Pro in Office for all 4 members of my family, I need to pay $80 a Month! This makes is so much more affordable and a no brainier.. bringing AI tools to its 84 millions consumer users and at a much more digestable price that with Copilot Pro.
As we all get back into the flow of work following the Christmas and New Year break, Microsoft continue to announce new features for Microsoft 365 Copilot.
Microsoft 365 Copilot has been available to “everyone” to buy and use now for a year now and it’ actually hard to conceive that it only actually ben 12 months! That said, I know hundreds of organisations that are using it every day and getting a great experience from it. I also know others (and people in my own organisation that have a bit more of a “hmmmmm and it’s ok” mindset to Copilot.
As I head back into my first full week at work with Copilot at my side, it’s worth looking at just how far it has come. From taking notes and summarising content, helping me catch up things I have missed (or forgotten) and evening being my companion to help me thrash out ideas, explain things, get a different opinion – Copilot is by my side.
Copilot is like that tireless colleague who’s always ready to lend a hand, doesn’t get tired, doesn’t take a lunch a break and doesn’t need to pop out for a coffee when I need it! I often describe Copilot as a drunk intern, in that it adds huge amounts of value to my day, but it doesn’t solve every work problem, nor can it assist with every task. It can’t make decisions for me, do my executive reports, remember to do things for me (there’s other tools for that) and can’t actually do my job for me. Microsoft 365 Copilot is a tool, a powerful tool, but like any tool, its effectiveness hinges on how you use it and more importantly how you don’t!
Having helped many customers and seen the results it can have, as well as my own experience of integrating Copilot into my daily work (and personal online life) routine, it takes time. It not as simple as allocating a licensing and clicking the Copilot button. Good adoption and useful results require practice (lots), sharing what works, and an understanding of its capabilities and limitations. In this blog. I share a few little tips we have learned on the way, coupled with some tips to see value every day.
1. Results may not be instant – Practice makes perfect
You may hear people say “it is rubbish” or “it didn’t do what I thought”, or “Copilot can’t help me in my job”.
This is sometimes true, but nearly all of the time, it is simply not! Copilot can certainly help you brainstorm ideas, answer questions, explain content and even get a third person review on something you have created, but it it is not going to transform you into a master mathematician, coder, web designer or salesman overnight.
Like learning a new musical instrument (my son is learning the trumpet at the moment) or a language, it takes time (and patience) to get the hand of pretty much any tool.
Success comes (and I see it every day) by embrace the learning curve, trying new things and giving yourself room to grow alongside this technology which is constantly evolving and improving. Working with Generative AI is a totally different way of working with technology so give yourself time to work with it. There is no AI Natives (yet!).
2. Don’t get fired – Copilot for everyone but not for everything!
Think of Copilot as your co-pilot, not as the captain of your work. Copilot is there to assist you in what you do but not to take over. While it might draft a great email or executive summary, help you expand on a point or explain something, only you (as the Pilot) can ensure it aligns with your objectives and ask and that what it produces resonates with your audience.
Remember you are accountable for what Copilot produces for you – Copilot is the co-pilot. You are always in command. Copilot will remind of this, but do. Check the content, is it what you needed and asked for. Does it seem correct, read well and has it used the right content and context. If Copilot get’s it wrong, its your block on the line not Copilot’s.
Your expertise and personal touch are irreplaceable, and you are still responsible for what it produces. Don’t look silly buy not checking what it produces!
3. Remember you are human – It is not!
The Human Touch is everything. For example, when using Copilot to write or reply to a sensitive email, or when writing a personal response to something, Copilot can absolutely provide you with a solid starting point or provide guidance on how to write it.
We have all read those emails comms that are so obviously written by AI. It’s easy to spot an email from someone you know that has clearly left AI to write for them!
Empathy, nuance, and authenticity and the way in which you communicate is what makes you. It’s important to use what Copilot (or an AI) creates as a draft or a guide and ensure you inject your personality and insights to make your communication truly impactful and truly you.
4. Copilot is not a mind reader – be clear in your asks
Copilot doesn’t inherently understand the nuances of your specific situation, so back to my drunk intern analogy, you need to give it context around what you want your assistant to do.
Copilot can “summarise a report” but won’t know how you would like this summarised, the tone you woudl like, who you are summarising it for and how long you want it unless you tell it. Be explicit about the how you want the output (the goal), the context of what you need, and your expectations for how you want the output to be presented.
Remember the formula for Copilot promoting is G.C.S.E – Goal, Context, Expectations and Source.
5. Don’t leave sensitivity to chance
Microsoft 365 Copilot will adhere to your company identity and access management, respect DLP policies and even understand sensitivity labels if they are used.
Many organisations however do not use these (though are starting too), but regardless, make sure you check that you are not feeding Copilot confidential customer information when creating responses for other customers or sharing internal information that is not supposed to be shared.
People get scared that Copilot may share sensitive information. Since Copilot is the assistant and not the author, you are responsible for checking that the data you have fed it (or referenced) can be used and shared externally.
There are new tools coming to help users better protect privacy and for IT / Sec to control what Copilot accesses, but it’s still “on you”. Remember Copilot can’t get the sack – you can!
6. Copilot will not replace learning but it can help you learn.
Some like to portray that they are an expert over night with AI tools like Copilot. Sure Copilot is great at simplify complex concepts or helping you know how to do something in say Excel or Word. Copilot is also really great at helping you understand seomthing, can explain something complex “as if i am a 10 year old” and so on, but it’s not a substitute for your own learning journey.
That said, I find Copilot is great for helping you to learn something. It can help you “learn” the basics about a topic, put things into different perspectives, and even help map learning paths and helps you find resources. At the end of the day, it is still you that will learn what you are learning, but Copilot is really great at helping you learn in your way…
7. Copilot has an appauling memory
One fo the things Copilot is really bad at (by design currently) uis remembering things. This mean that not only will it not ask you how that report went, or if your customer replied to the email it helped you write.
In fact Copilot cannot (currently) evcen remeber past convrsations or preferences so once you “start a new conversation”, all history of that task you were working are forgotten.
As a tip – I tend to have a couple of chats running in parallel so I can switch between contexts as I need to. ChatGPT now has this capability to imagine* it is only time before this comes to Microsoft 365 Copilot
8. The Roadmap is every changing
The last time I looked, there was 112 new features in development and 18 that are currently “rolling out”. This AI technology is evolving rapidly and Copilot is no exception.
New features and improvements roll out regularly. It’s worth checking on the Microsoft 365 Roadmap from time to time to ensure you stay informed about what is coming. There are also a plethor of blogs like this one, user communities, webinars and formal training to help you stay abreast of the latest innovations and tips.
Knowledge is power – the more you know, the more you can leverage Copilot to your advantage.
9. Integrate Copilot into your daily routine
Consistency is key. Copilot really adds avlue when you use it little and often and when it’s seamlessly woven into your daily workflow. Here are some reaaly simple habits to form:
Start your week with a recap: Use Copilot to remind you of any emails you did not repond to last week from your peers or boss, to prepare you for your upcoming meetings, or to sugegst a date your team (rememeber it knows who works for you) are available for an afternoon off-site.
Start Your Day with Copilot: Use Copilot in the morning to outline your your day, important tasks or get you up-to-date on something. You will soon be able to schedule Copilot to do certain tasks for you.
Catch on and control your meetings: One of Copilot’s hero capabilities is to help ypou catch up on a meeting you missed, take notes for you in a meeting and even help keep the meeting flowing.
Remeber your GCSEs: Before engaging with Copilot, know what the Goal is you are trying to achieve. Give Copilot context on how you wnat it done and ensure it knows what you expect. Clear questions yield better answers.
Share and Collaborate: Encourage your team to adopt Copilot and share tips. Collective learning amplifies benefits.
The true power of Copilot lies in how you incorporate it into your daily routine:
10. Don’t Give up
You may not always get the instant results, don’t give up. Ttry again, ask others what works for them and check out help and guidance. There’s loads.
Stay Curious and ensure you experiment with different prompts and functions. You might discover new ways Copilot can assist you.
Reflect Regularly by taking time to assess how Copilot is impacting your work. Adjust your approach as needed to maximise benefits.
Share your success so other can benefit from what you have learned and what works best for you.
Final Tips
Microsoft 365 Copilot is a remarkable assistant that can amplify your productivity, spark innovation, and even make mundane tasks more manageable. But remember, it’s a tool designed to enhance your capabilities – not replace them. By using it thoughtfully, staying informed about its features, and integrating it into good work habits, you can unlock its full potential.
Technology is a force multiplier, but it’s the human element that truly makes the difference. Copilot offers incredible capabilities, but it’s up to you to wield them effectively. Use it wisely, continue to learn, and keep pushing the boundaries of what’s possible. Your proactive engagement and thoughtful application are what turn a powerful tool into transformative results. So take charge, embrace the technology, and watch how it elevates the work you do every daym, little my little, bit my bit can make a huge difference in a week.
Oh and don’t forget to share your successes with others.
At CES 2025 in Las Vegas this week, Microsoft’s head of Windows devices, Pavan Davuluri, announced that Phi Silica, a Small Language Model (SLM), will be integrated into the Windows runtime as part of Copilot in the first quarter of 2025 to provide offline use and performance boosts whilst also paving the way for additional features and privacy enhancements made possible through local processing.
What’s a Language Model?
Before diving into the details, it’s important to understand what a language model is. Language models are designed to comprehend, generate, and perform human-like language tasks, having been trained on vast amounts of data. However, not all language models are the same – they come in different sizes, large and small, each with unique strengths and weaknesses tailored to specific requirements.
The main differences between small and large language models lie in their size, capabilities, and resource requirements.
LLMs are ideal for applications needing high accuracy and versatility, such as advanced search, chatbots and content generation.
SLMs are generally more suited for specific, lightweight applications, like mobile apps and edge devices and laptops such which have local NPUs like Copilot+ PCs.
SLMs are coming to Windows 11
The Phi Silica SLM, which was first showcased at Microsoft Build in Seattle in May 2024, is designed to complement the Large Language Model (LLM) that runs in the cloud allowing specific AI workloads and processing to be run locally or handed over and run in parallel with the cloud based LLMs.
Small, but mighty, on-device SLM
Microsoft
Why? Well, whilst LLMs are typically faster and more accurate, they require cloud-based operations and can be costly to run and inflict subscription fees (think Microsoft 365 Copilot). SLMs, on the other hand, can run many and other AI-driven applications and tasks locally on PCs, ensuring privacy and preventing data leakage to the cloud. However, SLMs are less sophisticated and require dedicated Neural Processing Units (NPUs) to provide these local AI capabilities. Hello Copilot+PCs.
Copilot+ PCs and AI PCs
The NPUs (Neural Processing Units) in Copilot+ PCs are designed to be highly power-efficient, capable of performing trillions of operations per second (TOPS) while consuming very little power. Specifically, on devices with Snapdragon X Elite processors, the Phi Silica model’s context processing uses only 4.8 milliwatt-hours (mWh) of energy on the NPU.
Additionally, the token iterator stage of the model shows a 56% improvement in power consumption compared to running on the CPU. This efficiency allows Phi Silica to operate without overloading the CPU and GPU, ensuring smooth performance and minimal impact on other applications.
Microsoft said that features like Windows Recall, Click-to-Do and other AI functionalities will soon be able to leverage these SLMs. Phi Silica uses a 3.3 billion parameter model, fine-tuned by Microsoft for both accuracy and speed and will. Improve performance, enhance privacy and enable more “offline” usage.
In a recent podcast episode with Bill Gurley and Brad Gerstner, Satya Nadella – CEO of Microsoft, discussed a wide range of topics related to his role at Microsoft, the state of the technology, business growth and capitalism in this new “AI Era”.
The podcast which you can watch on YouTube here covered some interesting topics including the Future of AI Agents and their potential to transform how we interact with technology. In this blog (worth a listen), Satya gives his predications/insights into the future of AI Agents and emphasises that AI agents will fundamentally change the landscape of software-as-a-service (SaaS) solutions, predicting that the traditional notion of business applications will collapse in the era of agentic AI.
What is Agentic AI?
Agentic AI refers to artificial intelligence systems that can make decisions and take actions autonomously, without direct human intervention. These systems are designed to perceive their environment, reason about the best course of action, and execute tasks independently. In short these agents are designed to function as workplace teammates, capable of handling various tasks across different applications.
As example, in e-commerce platforms, instead of static, rule based chatbots, agentic AI-driven systems can track a customer’s journey, personalised recommendations, and assist with returns seamlessly without user / supervisor input. These agents will be able to actively learn from interactions, optimising the customer journey in real time and learning about user preferences.
Agentic AI typically inhibits the following features:
Autonomy: Agentic AI systems can operate independently, making decisions based on input data and predefined goals.
Adaptability: These systems can adapt to changing circumstances and inputs, adjusting their actions to achieve their objectives.
Proactivity: Agentic AI can anticipate user needs and take actions without explicit instructions, making them more proactive in their behavior.
Collaboration: In the future, agentic AI systems will be able to work together in multi-agent networks, collaborating to handle complex tasks that a single agent cannot manage alone.
Changes Ahead for AI Agents
The video / podcast is an hour and a half (but an enjoyable and informative listen). Reading between the sections, Satya talks extensively about where he sees AI Agents evolving massively through 2025. I have summarised this below.
Increasing Sophistication and Capabilities
AI agents will become increasingly sophisticated and capable, eventually replacing traditional software applications. These agents will be able to understand and anticipate user needs, providing personalised and proactive assistance. They will leverage advanced natural language processing (NLP) and machine learning algorithms to interact with users in a more human-like manner.
Autonomous AI Agents
Through 2025. we will see autonomous AI agents handle more and more complex tasks with minimal human oversight, optimising workflows and enhancing efficiency across industries. These agents will streamline workflows, manage intricate operations, and simplify everyday activities. For example, OpenAI’s “Operator Agents” will autonomously execute multi-step processes, such as scheduling meetings or managing projects.
Multi-Agent Networks
Sayta talks abiut the “future” being a place that is not about singular agents but more about networks or systems of agents where agents can discover and collaborate with other agents. These multi-agent networks will enable agents to handle tasks that they can’t do themselves by invoking other agents (agents talking to other agents). This collaborative approach will enhance the overall capabilities and efficiency of AI agents.
Vertical AI Agents
Vertical AI agents, which are specialised for specific industries, are expected to have their moment in 2025. These agents will dominate their respective fields by offering tailored solutions that address industry-specific challenges. For example, retail AI agents will act as personal shoppers, offering personalised recommendations and optimising inventory management.
Persistent Memory and Personalisation
AI systems with persistent memory will enable highly personalized interactions, transforming AI into long-term companions that adapt to user preferences and habits. This capability will allow AI agents to provide more relevant and context-aware assistance, enhancing user experiences.
Emotional Intelligence
Future AI agents are expected to possess emotional intelligence, allowing them to understand and respond to human emotions. This will enable more empathetic and effective interactions, particularly in customer service and healthcare settings.
Integration with IoT and Personal Devices
AI agents will increasingly integrate with the Internet of Things (IoT) and personal devices. This integration will enable seamless interactions across various platforms and devices, creating a more connected and efficient ecosystem. For example, AI agents in smart homes will manage household tasks, monitor energy usage, and provide personalized recommendations.
Ethical AI and Transparency
As AI agents become more prevalent, there will be a greater emphasis on ethical AI and transparency in decision-making. Ensuring that AI agents operate responsibly and transparently will be crucial for gaining user trust and acceptance. This includes addressing issues related to data privacy, bias, and accountability.
Proactive AI Agents
Proactive AI agents will anticipate user needs and take actions without explicit instructions. For example, an AI assistant might reorganize your day based on traffic updates and weather, reschedule missed appointments, and even draft personalized messages. This proactive approach will make AI agents more valuable and indispensable in daily life.
Enhanced Communication and Collaboration Tools
AI agents will enhance communication and collaboration tools, making it easier for teams to work together. These agents will facilitate real-time collaboration, manage project timelines, and provide insights to improve productivity. They will also assist in content creation, research, and workflow automation.
Shift and the of SaaS apps?
Another interesting section to listen too is at around 31 minutes, where Satya talks about his vision of how AI agents could potentially replace traditional SaaS (Software as a Service) applications. Whilst something that will not happen over night, he talked about the shift from business apps with connectors into other apps, but in an agent to agent and agent to back-end system.
We can already have connectors into applications like SAP, Dynamics etc. A great quote he used was “when was the last time any of us really went to a business application” In the AI age, we access the data in these systems from a mesh of data sources which over time, these back-end SaaS systems would eventually become obsolete as AI agents take over multi-repository CRUD (Create, Read, Update, Delete) operations. This shift would lead to the collapse of conventional business applications, with AI agents handling the core logic.
The idea will be that you simply pull information from systems through AI Agents such as looking up customer details, updating inventories, changing a contact in NetSuite CRM for example or checking delivery status for an order.
Other examples, Sayta talked about with regards AI Agents included:
Infinite Memory: He explained that infinite memory refers to the ability of AI agents to retain and recall information over extended periods, much like a human’s long-term memory. This capability will allows AI agents to build on past interactions and experiences, making them more effective and personalized in their responses and actions.
Proactive Task Management: AI agents are envisioned to operate autonomously, handling complex tasks such as processing customer returns, managing shipping invoices, and optimizing supply chain operations. This proactive approach reduces the reliance on user-initiated interactions, further diminishing the need for traditional SaaS applications.
Automation of Business Logic: Satya explained that AI agents would be able to automate many backend business processes, creating a new tier of multi-agent orchestration. This means that business logic, which is currently hardcoded into individual applications, will be managed by AI agents across multiple apps or databases and will adapt based on useage and need.
Integration with Existing Tools: Nadella highlighted the integration of Python with Excel as an example. AI agents can use Excel’s visualisation capabilities for advanced tasks, transforming it into a more intelligent and autonomous tool. This integration demonstrates how AI agents can enhance existing applications, making them more efficient and reducing the need for traditional SaaS apps.
