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ChatGPT vs Microsoft Copilot for small business — which should you use?

Published March 2026 - 6 min read

In short: For Australian small businesses already using Microsoft 365, Copilot is usually the better starting point. ChatGPT is more flexible and better for content creation and research. Most businesses that get serious about AI end up using both.

ChatGPT vs Microsoft Copilot for small business — which should you use?

If you've been trying to work out whether your business needs ChatGPT, Microsoft Copilot, or both, you're not alone. They look similar on the surface — both are AI assistants that generate text, answer questions, and help you work faster. But they're built differently, priced differently, and suited to different use cases.

What is the difference between ChatGPT and Microsoft Copilot?

ChatGPT

ChatGPT is a standalone AI assistant made by OpenAI. You access it through a browser or app, type a prompt, and get a response. It doesn't connect to your business files, emails, or calendar unless you specifically give it access.

Microsoft Copilot

Microsoft Copilot is AI built directly into Microsoft 365 — Word, Excel, Outlook, Teams, and PowerPoint. It can read your documents, summarise your emails, generate meeting notes from Teams calls, and draft content using the context of your actual business data.

ChatGPT vs Microsoft Copilot — side by side comparison

FeatureChatGPT Pro (~$30/month)Microsoft Copilot for M365 (~$36/month)
Data storage locationOpenAI servers (US-based by default)Your Microsoft 365 environment
Microsoft 365 integrationNone (unless manually configured)Native — works inside Word, Excel, Outlook, Teams
Best for document draftingGood for standalone draftsExcellent — drafts using your existing files as context
Best for content creationExcellent — flexible, creative, fastGood — more structured, less creative flexibility
Meeting summariesManual — paste transcript in yourselfAutomatic from Teams calls with one click
Data privacy controlsConfigurable — enterprise settings required for full controlInherits your existing Microsoft 365 security settings
Admin and governance controlsLimited on standard plansFull admin controls via Microsoft 365 admin portal
Best suited forBusinesses not on M365, sole traders, content-heavy use casesTeams already using Microsoft 365, document-heavy workflows

Which should you choose?

Choose Copilot if:

Choose ChatGPT if:

Use both if:

A note on cost

Both tools cost roughly the same per user per month — ChatGPT Pro at around $30/month and Copilot for Microsoft 365 at around $36/month. The difference is that Copilot requires an existing Microsoft 365 subscription (typically $15–$22/user/month). If you are already paying for Microsoft 365, adding Copilot is a relatively small incremental cost.

What about data privacy?

ChatGPT's default settings send your prompts to OpenAI's servers in the United States. If you are inputting client information or financial data covered by the Australian Privacy Act, you need to use ChatGPT's enterprise settings or avoid inputting sensitive information.

Microsoft Copilot operates within your existing Microsoft 365 environment. Your data stays inside your Microsoft tenancy, under the same security and compliance settings you already have in place.

Frequently asked questions

Is my business data safe in ChatGPT?

By default, ChatGPT uses your conversations to improve OpenAI's models, and data is stored on US servers. You can opt out in settings. ChatGPT Enterprise offers stronger data protections. For businesses handling sensitive client information, enterprise settings or careful input hygiene are recommended.

Is Microsoft Copilot worth the extra cost for a small business?

For businesses already on Microsoft 365, Copilot is worth evaluating seriously. Whether it justifies the cost depends on how heavily your team uses Microsoft 365. A one-month trial with a small group is usually the best way to assess value.

Can I use ChatGPT and Copilot at the same time?

Yes — many businesses use both. A common pattern is Copilot for internal document work and email drafting, and ChatGPT for external content creation and research.

Which is better for a tradie vs a professional services firm?

For a tradie, ChatGPT is usually the better starting point. For a professional services firm already on Microsoft 365, Copilot offers more value because the integration with Outlook and Word directly addresses the highest-volume tasks.

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