With the introduction of Microsoft 365 Copilot Chat, every employee in an organization using Microsoft 365 can use agents within Microsoft 365 Copilot. Microsoft 365 Copilot Chat is an AI-powered chat available at no additional cost with Microsoft 365. It is the default chat experience for any organization that deploys Microsoft 365. Microsoft 365 Copilot Chat includes web grounding, the latest large language models, Copilot pages, IT controls, and enterprise-grade privacy and security.

Microsoft 365 Copilot Chat is an excellent entry point for all members of an organization to adopt AI. However, organizations looking to go further with the Copilot experience can purchase a Microsoft 365 Copilot subscription for all or some of their employees.

Microsoft 365 Copilot remains Microsoft’s flagship personal AI assistant for work, encompassing all Copilot Chat features and much more. When a user has a Microsoft 365 Copilot license, Copilot Chat becomes even more powerful. It uses enterprise data via Microsoft Graph, integrates directly with Microsoft 365 apps, and leverages advanced measurement and management tools.

Agents in Microsoft 365 Copilot Chat and Microsoft 365 Copilot

Both plans—Microsoft 365 Copilot Chat and Microsoft 365 Copilot—allow users to create agents for Copilot Chat and SharePoint. Both support grounding agents in web data. However, the ability to ground agents in work data is one of the key differences between the two.

Microsoft 365 Copilot Chat

For organizations that do not purchase a Microsoft 365 Copilot subscription, all their users are automatically covered under the Microsoft 365 Copilot Chat plan. This plan is often referred to as “Copilot for everyone.” By default, this plan only accesses web content to generate responses; it does not access work data (tenant Graph grounding). However, a company with the Copilot Chat plan can still access work data if the following conditions are met:

• The company purchases a metered billing plan for Copilot.
• The company enables tenant Graph grounding in Copilot Studio. If this feature is enabled, each time an agent responds with a generative answer, it uses tenant Graph knowledge, and grounding is billed. Tenant Graph grounding costs 30 messages per knowledge retrieval.

Microsoft 365 Copilot

For organizations that purchase a Microsoft 365 Copilot subscription, licensed users can use either web or work data in Copilot Chat. A Web/Work toggle is available on the Copilot Chat page, allowing licensed users to choose whether Copilot Chat should use web or work content to generate responses.

Unlicensed users can still use work data if their organization has a metered billing plan and has enabled tenant Graph grounding in Copilot Studio, just like organizations using the Copilot Chat plan.

A company may assign Microsoft 365 Copilot licenses to some users while using the metered model for others. For example, it may license its core users who need full access to Copilot features and apply the metered plan to other users who don’t have a license but still need to use features like tenant Graph grounding. The company will be billed based on those users’ usage.

Agents in SharePoint

A user’s ability to create and use agents on a SharePoint site depends on their role on the site:

• Site Members: Members can create and use agents on a SharePoint site if they have Edit permission or higher. This permission allows them to develop their own agents to extend site functionality. It also enables them to create, modify, and delete documents, lists, and libraries, participate in discussions, create and edit pages, and perform various other activities depending on their granted permissions.
• Site Visitors: These users typically have read-only permission. This means they can view content but cannot create, modify, or delete content on the site. Visitors with read-only access can use agents that are shared with them but cannot create or modify agents. The SharePoint agent approval process allows other members or visitors to access approved agents. The person who creates an agent can use it without approval, but approval is required to make the agent available to other site users.

External Users and SharePoint Agents

An external user is someone who is not part of an organization but is granted access to one or more of the company’s SharePoint sites. Since they can access certain SharePoint sites, let’s examine whether they can also create and use agents for those sites.

Let’s start by defining who external users are. They may be vendors, partners, customers, or consumers. They typically authenticate using credentials from another organization or a personal Microsoft account. External users can collaborate on documents and content stored in SharePoint Online, and their access is managed through SharePoint’s external sharing feature.

An external user can be identified by their email address, which is not part of the organization’s domain. External users can be granted various levels of access, similar to internal employees. They may receive permissions ranging from read-only to full control, depending on what the site owner or administrator decides.

An external user can be assigned different levels of access to a SharePoint site. A site owner or administrator can also add them as a site member. To do this, simply add the external user’s email address to the site’s member group. This process is similar to adding internal users.

If an external user is not explicitly added as a site member, they are generally considered a site visitor with read-only permissions, just like internal employees.

External Users with Microsoft 365 Licenses

Some organizations treat certain external users as internal employees. They do this by assigning them a Microsoft 365 license and a Microsoft 365 Copilot license. While this is not common, it occurs in specific cases where external collaborators or partners need the same capabilities as internal employees to contribute effectively to a project.

Here are some scenarios in which an organization might assign a Microsoft 365 and Copilot license to an external user:

• External Consultants: Companies often hire external consultants or contractors to work closely with internal teams on specific projects. In such cases, the company may assign them Copilot licenses so they can create and use agents in SharePoint.
• Joint Ventures: When multiple companies collaborate on a joint venture, they may assign Copilot licenses to key members from each organization to ensure equal access to necessary tools.
• Long-Term Partnerships: In long-standing partnerships where external partners are deeply integrated into the company’s workflows, assigning Copilot licenses can facilitate collaboration and enable full participation in agent creation and usage.
• Special Projects: For projects requiring extensive collaboration with external parties, companies may assign Copilot licenses so all participants have the capabilities needed to contribute effectively.

These scenarios illustrate the flexibility of the Copilot licensing model, which allows organizations to extend the capabilities of their internal tools and SharePoint agents to external collaborators when needed.

Next unit: Explore the Benefits of Using Agents