Only 3.3% of Microsoft 365 users pay for Copilot

Microsoft CEO Satya Nadella recently indicated that Copilot’s user base has grown “nearly 3x year-over-year” during an earnings call, including AI chats, the news feed, search, browsing, shopping, and “integrations into the operating system.” It’s unclear how much revenue the company is actually generating from the offering.

However, a new report suggests that only 3.3% of Microsoft 365 and Office 365 users who interact with Copilot Chat actually pay for it (via The Register). In contrast, Microsoft spent a whopping $37.5 billion on its AI-themed efforts, according to the company’s latest financial earnings report for FY26 Q2.

Despite investor doubt and concern, Nadella indicated Copilot is“becoming a true daily habit,” further citing “record” AI momentum. Microsoft’s report on Copilot adoption and growth looks good on paper; it factors in approximately 15 million paid Microsoft 365 Copilot seats, which translates to 160 percent growth year-over-year.