Microsoft M365 Copilot: A Forecast of Adoption and Impact

Microsoft M365 Copilot is poised to revolutionise the business technology landscape. Let’s examine its potential, expected adoption rates, and the challenges it brings, based on insights from a range of experts and Microsoft partners.

Widespread Recognition of Value

Experts across the board acknowledge the considerable value M365 Copilot is set to offer. Even the most conservative adoption predictions, ranging from 5-10%, indicate a significant boost for Microsoft.

M365 Copilot is expected to be as influential as the rollouts of O365 and Teams. Many experts project adoption rates of 2% by the end of 2023, increasing to 10% by the end of 2024, and reaching 35% by the end of 2025.

Early Adoption and Industry Response

Several Microsoft technology partners and clients blessed with access to the Early Adopters programme, are running pilot projects, with more planning to start in the coming months. However, some face challenges due to the minimum deployment threshold of 300 users, pointing to potential issues for smaller organisations.

Among those trialling Copilot, a high conversion rate to paid licenses indicates strong market approval.

Pricing and Licensing Challenges

The fixed pricing model of Copilot poses significant negotiation challenges. Experts deem a ‘fair price’ to be around $16/user/month, compared to the current rate of $30/user.

The current rigid pricing structure means that adding Copilot could increase the cost of an E5 license by about 50% and an E3 license by over 80%.

With Microsoft’s expected price increases in 2024 and changes to Teams licensing in Europe, organisations are preparing for substantial rises in their Microsoft-related expenditures.

Security: A Crucial Consideration

Security is the foremost concern in the broader implementation of Copilot. The need for comprehensive security audits and stringent access controls is vital to ensure regulatory compliance and protect sensitive data. This highlights the complex balance between embracing new technology and maintaining robust security protocols.

What’s Next?

Microsoft M365 Copilot is at the forefront of a significant technological shift in the business world. Its promising capabilities come with notable challenges, particularly in terms of security and cost.

As organisations consider integrating Copilot into their operations, its impact on productivity and operational efficiency will be critical to monitor.

The path to widespread adoption will involve careful consideration, strategic planning, and a keen focus on balancing innovation with security and cost management.