Note: this post is correct at time of writing (July 2025). AI is subject to rapid change so information in here may be out of date depending on the time in which you read it.
When it arrived to great fanfare in November 2022, ChatGPT quickly proved that generative AI was going to rapidly change our lives. Today, there are hundreds of large language models available, with two standing out as the most commonly used: ChatGPT & Microsoft Copilot. While both tools harness the power of generative AI, they serve different purposes and offer distinct advantages depending on your business needs.
In this blog, we’ll explore what each tool does, how they compare, and which is best suited for midmarket businesses looking to enhance productivity, decision-making, and innovation.
What is ChatGPT?
ChatGPT, developed by OpenAI, is a conversational AI model designed to understand and generate human-like text. It can answer questions, write content, summarize documents, generate code, and even simulate dialogue. Available through web and API interfaces, ChatGPT is widely used for:
- Customer support automation
- Content creation
- Research assistance
- Coding and technical support
- Brainstorming and ideation
ChatGPT is platform-agnostic and can be integrated into various workflows via APIs or used directly through OpenAI’s interface.
What is Microsoft Copilot?
Microsoft Copilot is a suite of AI-powered assistants embedded directly into Microsoft 365 applications like Word, Excel, Outlook, PowerPoint, and Teams. Built on the same underlying technology as ChatGPT (OpenAI’s GPT models), Copilot is tailored for enterprise productivity.
Key use cases include:
- Drafting and editing documents in Word
- Summarizing meetings and emails in Outlook and Teams
- Analyzing data and generating formulas in Excel
- Creating presentations in PowerPoint
- Automating repetitive tasks across Microsoft 365
Copilot is deeply integrated with your Microsoft 365 environment, leveraging your organization’s data securely and contextually.
Copilot vs ChatGPT: Key Similarities
Despite their different applications, Copilot and ChatGPT share several core features:
- Powered by GPT models: Both use large language models developed by OpenAI.
- Natural language understanding: They interpret and respond to human language with high accuracy.
- Multifunctional: Both can generate text, summarise content, and assist with decision-making.
- Continuously improving: Regular updates enhance their capabilities and accuracy.
Copilot vs ChatGPT: Key Differences
| Feature | Microsoft Copilot | ChatGPT |
|---|---|---|
| Integration | Embedded in Microsoft 365 apps | Standalone or API-based |
| Data Context | Uses your Microsoft 365 data (emails, docs, chats) | No direct access to business data unless integrated |
| Security & Compliance | Enterprise-grade, aligned with Microsoft’s compliance standards | Varies by implementation; OpenAI offers enterprise plans |
| Customisation | Limited to Microsoft ecosystem | Highly customisable via API and plugins |
| Use Case Focus | Productivity and workflow automation | General-purpose AI and conversational tasks |
Which is best for your business?
For midmarket businesses, the choice between Copilot and ChatGPT depends on your goals:
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Choose Microsoft Copilot if your team relies heavily on Microsoft 365 and you want to boost productivity within familiar tools. It’s ideal for automating document creation, summarizing meetings, and enhancing collaboration.
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Choose ChatGPT if you need a flexible, general-purpose AI assistant for tasks like customer service, content generation, or technical support. It’s also a great choice for businesses building custom AI solutions.
For many businesses, the best approach is using both: Copilot for internal productivity and ChatGPT for external or creative applications.
When using AI tools, take care to ensure that sensitive business information is not shared. Microsoft Copilot uses built-in safeguards in Microsoft 365 to ensure your security and compliance requirements are met when using it.