ChatGPT and Microsoft Copilot are the two leading AI tools for UK businesses, and both are powered by the same underlying GPT-4 model from OpenAI. The choice between them is not about AI quality but about how they fit into your existing software and workflows. This guide compares them directly to help you choose.
What Are ChatGPT and Microsoft Copilot?
ChatGPT is a standalone AI tool from OpenAI. You access it through a web interface or mobile app, and it works independently of any other software. It is a general-purpose AI assistant that can help with writing, research, analysis, coding, and brainstorming. ChatGPT Plus costs around £18 per month per user.
Microsoft Copilot is an AI assistant integrated into the Microsoft 365 ecosystem. It works within Word, Excel, Outlook, Teams, and other Microsoft applications, helping you draft documents, analyse data, compose emails, and summarise meetings. Copilot for Microsoft 365 costs around £24 per month per user, or may be included in some Microsoft 365 business plans.
Both tools use GPT-4 from OpenAI, which means the underlying AI capability is the same. The difference is in how you interact with them and what they can connect to.
How Do Their Features Compare?
ChatGPT strengths: standalone use with no dependency on other software, broad capability across writing, research, coding, and analysis, large ecosystem of plugins and integrations, custom GPTs for specific use cases, and API access for custom development. It is the more flexible tool for businesses that use diverse software.
Copilot strengths: deep integration with Microsoft 365 applications, ability to work directly on your documents and data in Word, Excel, and Outlook, meeting summarisation in Teams, and enterprise-grade security through Microsoft infrastructure. It is the more integrated tool for businesses that live in Microsoft 365.
The key difference is context. ChatGPT works in its own window. Copilot works inside the application you are already using. If you spend your day in Outlook and Word, Copilot saves you switching context. If you work across many different tools, ChatGPT is more flexible.
How Do Their Prices Compare?
ChatGPT Plus costs around £18 per month per user. ChatGPT Team costs around £22 per month per user with additional admin controls and data privacy guarantees. ChatGPT Enterprise has custom pricing for larger organisations.
Microsoft Copilot for Microsoft 365 costs around £24 per month per user, added on top of your existing Microsoft 365 subscription. Some Microsoft 365 business plans now include Copilot features at no additional cost. Check your current plan before paying extra.
If you already have Microsoft 365, Copilot may be effectively cheaper or included. If you do not use Microsoft 365, ChatGPT Plus is the lower-cost standalone option. See our guide on AI affordability for the broader cost picture.
Which Has Better Data Privacy?
Both tools offer business-grade data privacy when you use the right plans. ChatGPT Team and Enterprise plans do not use your data to train OpenAI models. Microsoft Copilot with commercial plans also does not use your data for training. Both comply with GDPR for European users.
The important rule is: do not use free personal tiers for business data. Free ChatGPT and free Copilot may use your conversations to improve their models. Business plans protect your data. For UK SMEs, either ChatGPT Team or Copilot with a Microsoft 365 business plan provides adequate data protection.
For more on data protection, see our guide on AI safety for business data.
How Do You Choose Based on Your Business?
The decision is primarily based on your software stack. If your business uses Microsoft 365 for email, documents, and meetings (which many UK SMEs do), Copilot is the natural choice because it works where you already work. The integration means you can draft an email in Outlook, analyse data in Excel, or summarise a Teams meeting without leaving those applications.
If your business does not use Microsoft 365, or if you use a mix of tools (Google Workspace, standalone apps, custom software), ChatGPT Plus is the better choice because it is independent and flexible. It works regardless of your software stack and has the broadest capability set.
Some businesses benefit from using both. Copilot for Microsoft 365 tasks (email, documents, meetings) and ChatGPT for standalone research, content creation, and tasks outside the Microsoft ecosystem. The combined cost is around £42 per month per user, which is still modest for the productivity gains.
What About Google Gemini?
Google Gemini is the third major option, integrated into Google Workspace (Gmail, Docs, Sheets, Meet). If your business uses Google Workspace instead of Microsoft 365, Gemini is the equivalent of Copilot. Gemini is included in some Google Workspace business plans and has a standalone version similar to ChatGPT.
The three-way choice is straightforward: use Copilot if you are on Microsoft 365, Gemini if you are on Google Workspace, and ChatGPT if you use neither or want a standalone tool. For a comparison of the underlying models, see our guide on AI models comparison.
If you want help choosing and implementing the right AI tool for your business, book a free discovery call with our team. We help UK SMEs select and deploy AI tools effectively. See our services for details.