Microsoft promoted Copilot extensively, yet very few people purchased it, and even fewer utilize it, according to a report.

      Users are hardly engaging with Copilot

      Microsoft has invested the last few years in making Copilot nearly impossible to ignore. It has been incorporated into Windows 11, and subsequently appeared in Edge, Word, and many other applications within the Microsoft software ecosystem. New laptops even feature a dedicated key for Copilot. Microsoft aimed for AI to become a part of daily life, leveraging its extensive customer base of hundreds of millions.

      However, recent adoption statistics indicate a lackluster response. Microsoft disclosed that Copilot 365 has over 20 million paid users. While this figure may appear impressive at first glance, it pales in comparison to the company's more than 450 million paid commercial Microsoft 365 users. This means fewer than 4.5% of these users are opting for the complete Copilot experience.

      Most paid seats are still underutilized

      More notably, having a paid Copilot subscription does not guarantee that employees are actively using it. A recent report indicates that, according to enterprise surveys, weekly usage among licensed Copilot users is only between 20% and 30%. Based on Microsoft's own figures, this translates to approximately 4 million to 6 million weekly users, or about 1% of the larger commercial user base of Microsoft 365. This represents only a small fraction of the overall total.

      It’s important to note that these statistics refer specifically to the paid Microsoft 365 Copilot product, which operates across company emails, meetings, and other related systems. Thus, they do not include those using the free consumer chatbot or Copilot Chat, which are available to eligible Microsoft 365 customers without needing to buy a full license.

      The statistics suggest that companies might purchase thousands of licenses during an AI implementation, yet only a small percentage of employees integrate Copilot into their weekly workflows. Microsoft is aware of this discrepancy and has recognized it. Office users now have the option to hide their floating Copilot button, and eligible organizations can uninstall the Windows application. Moreover, the company has reduced Copilot branding in some inbox applications following broader criticisms.

      Microsoft 365 prices have increased

      In conjunction with the lukewarm adoption, Microsoft also raised the prices for Microsoft 365. At the beginning of the month, the monthly fee for Business Basic rose from $6 to $7, while Business Standard increased from $12.50 to $14. Several enterprise and frontline plans also saw price hikes between 5% and 33%.

      Furthermore, Microsoft has adjusted its Business Standard and Premium subscriptions that include paid Copilot to costs of $23.50 and $32 per user per month, respectively.