Microsoft Copilot vs ChatGPT: what is the difference?

Microsoft Copilot and ChatGPT are both chat assistants built on large language models, but they are designed for different jobs. Copilot is Microsoft's assistant, built into Windows, Edge and Microsoft 365 apps such as Word, Excel and Outlook. ChatGPT is OpenAI's standalone assistant, which you open in its own app or website. If most of your work happens in Microsoft's apps, Copilot is the natural fit. If you want a flexible, open-ended assistant for writing, ideas and code, ChatGPT is.

Updated: October 2026

The short version: same family of technology, different jobs

A large language model (LLM) is a program trained on huge amounts of text to predict and generate language. Both products are powered by LLMs, so on the surface they feel alike: you type a question and get an answer. Where they differ is in where they live, what they can see and who controls your data.

An IONOS comparison summarises the split this way. Copilot is designed to work inside the Microsoft ecosystem, while ChatGPT is a more flexible tool for a wide range of tasks. IONOS lists Microsoft (in collaboration with OpenAI) as Copilot's provider and OpenAI as ChatGPT's. That relationship is why the two feel so similar, but they are separate products from separate companies, with different plans, controls and terms.

One naming warning before we go further. "Copilot" is used for several Microsoft products, including the one for programmers, GitHub Copilot. This guide covers the general assistant in Windows, Edge and Microsoft 365. If you are choosing a coding tool, see our GitHub Copilot vs Cursor guide.

What Microsoft Copilot is

Microsoft's own documentation notes a naming change: Microsoft 365 Copilot is now called Microsoft Copilot, and Microsoft 365 Copilot Chat is now called Microsoft Copilot Chat. Some licences and features still use the older names during the transition, according to Microsoft's Copilot Chat privacy and protections page. Expect to see both names in menus and admin pages.

In practice there are two layers for workplace users:

• Copilot Chat: a chat that answers from the public web (grounded through the Bing search service) and from whatever you paste or upload. According to Microsoft, it is not grounded in your organisation's files, emails or chats by default.
• Microsoft Copilot (the licensed version): the one that works across your work data. Microsoft's page says access to full work data, through what it calls Work IQ and semantic indexing, is only available to users with the Copilot licence.

IONOS describes the licensed experience as built into familiar Office apps. It suggests phrasing, summarises content, generates tables and answers questions based on the context of your files. Its examples include reports and summaries in Word, pattern-spotting and charts in Excel, and email drafting and thread summaries in Outlook.

What ChatGPT is

ChatGPT is a conversational assistant from OpenAI. IONOS describes it as available through a web app, a mobile app and an API, with customisation through Custom GPTs. These are tailored versions you can set up for a role, such as a language trainer or marketing adviser. It can answer questions, write and debug code, and work with uploaded files, PDFs and images.

The flip side, per the same comparison: ChatGPT does not have access to your calendar, emails or Microsoft data on its own. What you get in exchange is flexibility. It is built for creative, exploratory and loosely structured tasks rather than for acting inside one particular document. If you want to see how it stacks up against other general assistants, we have comparisons with Gemini and Claude.

Where each one works best

Copilot: tasks inside your documents and inbox

IONOS lists Copilot's strengths as seamless fit with Microsoft 365 workflows, context drawn from your existing data, and time saved on repetitive writing and formatting. Typical jobs are drafting a reply to a long email thread, turning a document into a slide deck, summarising a meeting, or analysing a spreadsheet. Microsoft's documentation adds that Word, Excel and PowerPoint agents can generate files from prompts, with generated Word documents and Excel workbooks available to download and PowerPoint presentations stored in OneDrive if storage is available.

Microsoft also describes Copilot Chat in Outlook as able to reach your emails, calendar, meetings, chats and limited file content, which supports tasks like triaging your inbox or preparing for a meeting.

ChatGPT: open-ended and creative work

IONOS rates ChatGPT highly for brainstorming, storytelling, ad copy and general writing, for explaining specialised topics, for writing and debugging code in many languages, and for analysing files in a single session. Its Custom GPTs and plugins are noted as ways to tailor it. I would add my own opinion: when the task is not tied to one document, such as drafting a speech, planning a trip or learning a topic, a general chat assistant is usually the less awkward tool.

The weak spots

IONOS lists Copilot's limits as weaker performance on creative tasks outside Microsoft apps, a strong dependency on Microsoft infrastructure, and no customisable conversations like ChatGPT's. For ChatGPT it lists inconsistent or incorrect answers on complex queries. That last point applies to every assistant here: both can state wrong things confidently, so check anything that matters.

Plans and pricing model

The two products are sold in different ways, and that matters more than any feature list.

• Copilot: IONOS says it requires a Microsoft 365 Copilot or GitHub Copilot licence. Microsoft's documentation says enterprise data protection is available in Copilot Chat at no extra cost, and that the controls and policies vary depending on the underlying subscription plan. Microsoft's page also mentions pay-as-you-go agents that can reach organisational content.
• ChatGPT: IONOS describes a freemium model with a paid Plus plan. A free tier lets you try it; paying unlocks more.

I could not confirm current price figures for either product from a pricing page, so I have left exact amounts out. Check Microsoft's and OpenAI's own pricing pages, because both companies reshuffle plans regularly.

Data protection and privacy

This is the biggest practical difference for work use. For Copilot Chat in a work or school account, Microsoft's documentation says prompts and responses are processed within the Microsoft 365 service boundary under what it calls enterprise data protection. This means Microsoft acts as a data processor under its Data Protection Addendum, and prompts and responses are not used to train the underlying foundation models. A green shield next to the New Chat button shows that protection is on.

Other details from that page that are worth knowing:

• Prompts and responses are logged and stored in Exchange for auditing and eDiscovery, so your employer can keep records of what was asked.
• The page says Copilot Chat supports GDPR, and that for EU users traffic stays within the EU Data Boundary.
• Web searches are the exception: queries sent to Bing are handled under different terms, with Microsoft acting as an independent data controller, and Microsoft says they are not EU Data Boundary compliant. The queries are short, and do not include user or tenant identifiers or whole files.

Note that the IONOS article takes a more cautious view on privacy, saying Copilot data is stored in the US and that ChatGPT offers lower privacy than European assistants. Microsoft's documentation describes EU data boundary safeguards, so these sources do not fully agree. Rules differ by plan, region and date, so if this matters for your organisation, read the current terms and ask your IT or legal team. I could not verify OpenAI's data controls for its different plans from its own pages, so check how a ChatGPT plan treats your data before pasting in anything confidential, including whether your conversations can be used for training.

Side-by-side comparison

Prices checked in October 2026 on the pages cited; they change often, check the provider's page before you pay.

How to choose: home versus work

At work, in a Microsoft 365 organisation. Start with what your employer already provides. If your company has Copilot Chat, you get an assistant with enterprise data protection, audit logging and admin controls, which is hard to match with a personal account. Pasting company information into a personal chatbot account may break your workplace's policy, so ask first.

At home. Copilot is built into Windows and Edge, so it is close at hand for quick questions, summaries of a web page and searches. ChatGPT is the better-known general assistant, and its free tier is an easy way to explore. The two are not mutually exclusive: many people use one for documents and the other for brainstorming.

Questions to ask yourself:

1. Do I spend most of my day in Word, Excel, Outlook and Teams?
2. Do I need an assistant that can see my emails and files, or one I can safely start from scratch each time?
3. Is the data confidential, and is there an organisational policy?
4. Do I want to build custom assistants or use an API?

Limits and risks to keep in mind

Both tools can produce confident mistakes, so treat their output as a first draft. Copilot's usefulness depends on how tidy your files and permissions are, since it works with what you already have access to. That is a benefit, but it also means badly managed sharing settings can surface things you did not expect to see. ChatGPT's limit is the reverse: it knows only what you tell it, so you spend time providing context.

Both also come with lock-in. Copilot ties you more deeply to Microsoft. ChatGPT is separate from your documents, so you copy things back and forth. Finally, features and plan names change fast; the Copilot renaming mentioned above is a good example. Judge the product you can actually open today, not a launch announcement.

Verdict by use case

These are my recommendations, based on the facts above rather than on hands-on testing.

• Office documents, email and meetings: Copilot, because it works inside the apps and, with the licence, on your work data.
• Creative writing and brainstorming: ChatGPT, which sources describe as stronger on open-ended creative tasks.
• Confidential company information: Copilot with enterprise data protection through your organisation, unless your policy says otherwise.
• Customised assistants and API projects: ChatGPT, thanks to Custom GPTs and the API.
• On a budget: start with the free options of each; ChatGPT has a free tier, and Copilot Chat's data protection comes at no extra cost for eligible work accounts.
• Coding: neither general assistant is a full answer; see our coding assistant comparison.

Frequently asked questions

Is Microsoft Copilot just ChatGPT?

No. IONOS lists Microsoft as Copilot's provider, working in collaboration with OpenAI, but Copilot is Microsoft's own product with its own interface and integrations. Microsoft's documentation says Copilot Chat may use multiple models to generate a response.

Can ChatGPT read my Outlook emails or Word files?

Not by itself. IONOS notes that ChatGPT does not have access to your calendar, emails or Microsoft data. You would have to paste or upload the content yourself.

Does Copilot use my work prompts to train AI models?

According to Microsoft's documentation, prompts and responses in Copilot Chat are not used to train the underlying foundation models when enterprise data protection applies. Look for the green shield in the interface.

Do I need to pick just one?

No. Because they suit different tasks, many people use Copilot for work documents and a general assistant like ChatGPT for open-ended tasks. Just follow your employer's rules on where company data may go.