Copilot for Microsoft 365 may lack the name recognition of ChatGPT, but that could be about to change. Microsoft’s decision last week to make the AI productivity tool accessible to SMBs should help widen its reach.
Copilot employs large language models (LLM) and generative AI to quickly create text and images, summarize documents, and answer questions. On Jan. 16, Microsoft made it available across all sales channels, including Cloud Solution Provider (CSP) New Commerce. The vendor lifted a 300-seat minimum, making it more accessible to the SMBs who make up the bulk of MSP clients.
“I’m glad that Microsoft is leveling the AI playing field for small businesses so quickly. Many have been clamoring for it,” says Amy Babinchak, owner of Third Tier, which provides support to IT professionals, and a longtime MSP.
In interviews following the announcement, MSPs welcomed Microsoft’s decision. But their expectations about the opportunity were nuanced. Babinchak says the opportunity potentially is huge, but only if providers develop programs for clients around how to use AI and clean up their data. “Simply selling the product won’t do much for either the MSP or the client.”
“When we saw the announcement, we started posting this [on] our social media immediately. We have provisioned at least 100 licenses for customers.”
Michael Goldstein, LAN Infotech
Ed Correia, president and CEO of Sagacent Technologies, an MSP in Santa Clara, California, says Microsoft’s decision will “create awareness in the marketplace and fuel desires for tomorrow’s product demands.” As such, it opens an opportunity to engage clients in AI discussions, he adds.
The same happened with the introduction of cloud and SaaS solutions, he notes. “While those things are widely adopted today, it took a long time to get here. And it wouldn’t have occurred if there hadn’t been many conversations with clients.”
Dave Seibert, CEO of IT Innovators, an MSP in Irvine, California, anticipates limited revenue from Copilot for Microsoft 365. Like Correia, he sees it as an engagement vehicle. MSPs that haven’t yet discussed the product with clients should be scheduling roadmap appointments, he said. “AI is a fast-adopting technology, and most clients will be excited to learn more about it.”
Correia believes AI will drive growth for Sagacent. “But I doubt Copilot will put all that much money in my pocket. Still, as it develops and matures, I think AI, built into our applications, will be seen as a new normal in the not-too-distant future.”
Building Excitement For SMBs
Microsoft first introduced Copilot in February 2023 and released it to the enterprise in November. It is now available to commercial customers with Microsoft 365 E3/E5, Office 365 E3/E5, and Microsoft 365 Business Standard/Business Premium across all sales channels and online.
The Jan. 16 announcement generated some excitement among customers, according to MSPs. “When we saw the announcement, we started posting this [on] our social media immediately. We have provisioned at least 100 licenses for customers,” says Michael Goldstein president of LAN Infotech, an MSP in Fort Lauderdale, Florida.
Customers have asked for the product since Microsoft introduced it, he says, but the yearly price of $360 per user will limit the number of users.
But do users even know what to do with Copilot for Microsoft 365? Not necessarily, says Correia. “For the typical small and medium-sized business, this is just window dressing and hype. They don’t really know how to use it or what it could do for them yet.”
Educate Clients On The Opportunity
To change that, MSPs will have to serve as educators. “While many clients have heard of ChatGPT, they probably don’t know of Copilot,” says Seibert. “It’s important for partners to educate clients on the opportunity.”
Demand for the tool will grow as clients learn about its capabilities, he adds. “Any client considering ChatGPT will be an ideal target prospect to use Copilot. This is a great opportunity to help clients become AI-powered organizations.”
Before rolling out AI tools across a company, Correia recommends that the company’s thought leaders first test the products to determine their utility to the business. “Initially, products like this will necessitate a lot of handholding and maybe some consulting [from MSPs] on how best to use them,” he says.
Babinchak stresses the importance of helping clients make purposeful investments in Copilot. “If there aren’t professional services and project work attached to it, then the client will be disappointed, either in their MSP or AI itself.”
