In this guide · 8 sections
Short answer
For a Microsoft 365 business, Copilot Chat signed in with a work account is the safer free default: prompts fall under Microsoft's enterprise data protection terms and are not used to train foundation models. Free ChatGPT is a personal account that can train on chats unless each user opts out.
Copilot Chat vs free ChatGPT at a glance
Both are capable chat assistants for everyday writing and summarising. The difference that matters for a business is whose terms cover the data and who controls the account.
Microsoft Copilot Chat (work account)
Safer free defaultIncluded with eligible Microsoft 365 plans
- Covered by Microsoft's Data Protection Addendum and Product Terms
- Prompts and responses not used to train foundation models
- Admins can manage access and web search
- Account belongs to the business and is removed when staff leave
Best for: Businesses already on Microsoft 365 that want one approved free AI tool.
ChatGPT Free
Personal accountFree
- Consumer terms; the user, not the company, owns the account
- Chats can train OpenAI models unless the user opts out
- No company admin console or audit
- Chat history leaves with the employee
Best for: Personal use, or work tasks with no client, staff or confidential data.
Who gets Copilot Chat for free
Microsoft's Copilot Chat management page says Copilot Chat is available at no extra cost for users who sign in with a Microsoft Entra work or school account and have a qualifying Microsoft 365 subscription. Qualifying plans include Microsoft 365 Business Basic, Business Standard and Business Premium, as well as the E-plans.
According to Microsoft's Copilot Chat overview, staff can reach it at m365.cloud.microsoft/chat, in the Microsoft Copilot app, in Outlook and Teams depending on the subscription, and in the Edge side pane. It can search the web, rewrite content, analyse uploaded files and create images. Outside Outlook, it is mainly grounded in the web and in what the user uploads. Reading across your organisation's emails and files needs the paid Microsoft 365 Copilot add-on.
How Microsoft protects Copilot Chat data
Microsoft's enterprise data protection page says Copilot Chat, as used by organisations, is covered by the Microsoft Products and Services Data Protection Addendum and the Product Terms, with Microsoft acting as data processor. Prompts and responses get the same contractual commitments as email in Exchange and files in SharePoint.
- No training: prompts, responses and data accessed through Microsoft Graph are not used to train foundation models.
- Security: encryption at rest and in transit, and data isolation between tenants.
- Web searches: queries sent to Bing are reduced to a few words, stripped of user and tenant identifiers, not shared with advertisers and not used to train models.
- Copyright: Microsoft offers its Customer Copyright Commitment for generated content.
Microsoft also notes that web search queries are not covered by the Data Protection Addendum in the same way as prompts. That is one reason some businesses switch web search off for sensitive work.
How free ChatGPT handles work data
Free ChatGPT is a personal service. OpenAI's data controls FAQ explains that each user chooses whether their conversations help train OpenAI models, through a setting called Improve the model for everyone. When it is off, new conversations are not used for training. Temporary chats are not saved to history and are not used to improve models.
The problem for a business is control, not the model. Each employee decides their own settings, you cannot see or enforce them, and the chat history stays in the employee's personal account when they leave. OpenAI's business plans work differently: its enterprise privacy page says business data is not used for training by default. ChatGPT Business costs US$20 per user a month billed annually (October 2026).
Our guide to AI training opt-out settings shows where the switch is in each tool.
Admin controls compared
| Control | Copilot Chat (work account) | ChatGPT Free |
|---|---|---|
| Who owns the account | Your business (Microsoft 365 tenant) | The employee |
| Turn access on or off for users | Yes, for all users or groups | No |
| Turn off web search | Yes, Allow web search in Copilot policy | No |
| Pin or unpin in Outlook and Teams | Yes | Not applicable |
| Remove access when staff leave | Automatic when the account is disabled | Not possible |
| Contract terms | Microsoft DPA and Product Terms | Consumer terms of use |
Microsoft's management page says admins can block access to Copilot Chat for all users or specific groups, and can control web search with the Allow web search in Copilot policy in Cloud Policy service or the Copilot Control System settings in the admin centre.
Which should be your default AI tool at work?
If you have Microsoft 365, the simplest safe policy is: Copilot Chat signed in with work accounts is the approved free tool, and personal AI accounts are not used for client, staff or confidential data. If staff need features Copilot Chat lacks, move them to a paid business plan such as ChatGPT Business, rather than tolerating personal accounts.
Confirm your plan qualifies
Check that staff have Business Basic, Standard or Premium (or an E-plan) and can open m365.cloud.microsoft/chat with their work login.
Pin it where people work
Keep Copilot Chat pinned in Outlook and Teams so it is easier to reach than a browser tab of ChatGPT.
Decide on web search
Leave it on for general work, or turn it off for teams handling sensitive data, using the Allow web search in Copilot policy.
Write a one-page AI policy
Name the approved tools, list what must never be pasted in (NRIC numbers, health data, client files without consent) and say who to ask. Our ChatGPT at work policy guide has a template.
Tell staff why
Explain the work-account sign-in and the training difference in five minutes at a team meeting. People follow rules they understand.
If you are on Google Workspace instead, our Copilot vs Gemini guide compares the equivalent options.
Do it yourself or get help?
Turning on Copilot Chat as the default tool is mostly a policy decision, plus a few admin settings you can change yourself. Where businesses struggle is making the rule stick and protecting the Microsoft 365 accounts that now hold AI chats as well as email.
Our Security Awareness Training (S$390) covers safe AI use alongside phishing and scams. Microsoft 365 / Google Security Lockdown (S$590) enforces MFA, blocks risky sign-ins and cleans up admin roles, so the work accounts behind Copilot Chat are protected.
Frequently asked questions
Yes, for eligible users. Microsoft says Copilot Chat is available at no extra cost to people who sign in with a Microsoft Entra work or school account and have a qualifying Microsoft 365 subscription, including Business Basic, Business Standard and Business Premium. The paid Microsoft 365 Copilot add-on adds work across your emails, files and Office apps.
Microsoft says prompts and responses in Copilot Chat used by organisations are not used to train foundation models, and are covered by its Data Protection Addendum and Product Terms. This applies when users sign in with their work account. Web search queries sent to Bing are de-identified and not used for training.
It is fine for general tasks with no confidential data. For anything involving clients, staff or business secrets it is risky, because it is a personal account under consumer terms, the company has no admin control, and chats can be used for training unless the user opts out. A business plan or Copilot Chat is safer.
Sign in at m365.cloud.microsoft/chat or open Copilot from Outlook or Teams with your work email. If you are using the consumer Copilot app or site with a personal Microsoft account, you are not covered by the business protections. Your admin can confirm which experiences your staff are using.
You can set a policy and, on managed devices or networks, block or restrict sites. In practice the most effective approach is to give staff an approved alternative that is just as easy, such as Copilot Chat pinned in Outlook and Teams, explain why, and include AI use in security training.