Microsoft faces low Copilot adoption among 450 million Office users

Microsoft is facing challenges in converting its massive Office 365 user base into paying Copilot customers. Despite having more than 450 million commercial Office 365 seats worldwide, fewer than 7 percent of those users currently hold a Microsoft 365 Copilot license.

To drive adoption, Microsoft has introduced an updated Copilot app designed to move beyond simple text generation. The new platform integrates coding capabilities via GitHub technology and introduces AI agents through a feature called Autopilot. The company is also rolling out Cowork for complex productivity tasks. While Microsoft currently charges $30 per user per month, the new structure will allow for usage-based pricing across three specific segments: Cowork, Code, and Autopilot.