Copilot Enterprise vs Business: differences in security

It is no secret that in recent years, artificial intelligence has become an increasingly essential tool for businesses, transforming the way they work and innovate while helping employees be more productive and focused on the most critical aspects of their jobs.

In the AI landscape, Microsoft Copilot has stood out not only for its impressive results but also for its wide range of available plans, enabling companies of all types and sizes to find the right option for their needs.

In this article, we will examine the differences in data protection features across the Copilot versions offered in Microsoft's key plans to determine which solution is best suited for your business.

Copilot Enterprise vs Business: an introduction

Microsoft is one of those giants that needs no introduction. It is well known for being a master in many areas of office software development and enterprise productivity, with organizations worldwide vouching for the quality of its products.

However, there is one thing that both supporters and critics can agree on: no matter how broad, diverse, and comprehensive Microsoft's offerings may be, they are equally confusing and complex to navigate—especially for those approaching the purchase of a Microsoft license for their organization for the first time.

Similar names hiding additional or missing features, policies of consolidating previously separate software under umbrella brands, sudden renamings, and more—there is no mistake Microsoft hasn’t made in this area.

And while one might be willing to forgive this in light of the quality of its software, it doesn’t solve the initial problem: What should I choose?

Even Copilot is not immune to this "family curse." Microsoft's AI-powered digital assistant also comes with a vast array of plans and offerings that are not particularly easy to navigate without some form of guidance.

In particular, there is growing concern over cybersecurity features, which have become one of the hottest and most sensitive topics for organizations worldwide. So why not take a closer look at this vast and complex landscape to better understand which of these solutions provides the strongest security posture?

Let’s explore it in the following sections.

What is Microsoft Copilot?

Before we begin, let's take a moment to get to know the star of this article—especially for those who may have missed some key developments in technology over the past few years and are unsure what we’re talking about.

Microsoft 365 Copilot is an AI-powered digital assistant designed to simplify users' daily tasks, boost productivity, and enhance creativity. Its main functions include code generation, writing assistance, and collaboration. Seamlessly integrated with popular Microsoft 365 applications such as Word, Excel, PowerPoint, Outlook, and Teams, Copilot provides contextual suggestions and helps users better understand information.

Powered by the cutting-edge GPT-4 language model, Microsoft Copilot boasts remarkable capabilities such as code autocomplete, documentation lookup, and collaborative writing. Microsoft is also continuously updating Copilot with new features, underscoring the company's heavy investment in generative AI for the future of its business-focused products.

Microsoft’s AI assistant is designed for a wide range of users and professionals, including developers, content creators, and workers seeking AI-powered support for their tasks.

The main ways to use Microsoft Copilot are the following:

• Adopting Copilot: Microsoft offers various Copilot assistants to enhance productivity and creativity. Integrated into multiple Microsoft products and platforms, Copilot transforms the digital workspace into a more interactive and efficient environment.
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• Extending Copilot: Developers can incorporate external data to streamline user workflows and minimize context switching. This not only improves productivity but also fosters greater collaboration. With Copilot, integrating external data into commonly used Microsoft products is simple and seamless.
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• Building a custom Copilot: Beyond adoption and extension, users can create a personalized Copilot for a unique conversational experience using Azure OpenAI, Cognitive Search, Microsoft Copilot Studio, and other Microsoft Cloud technologies. A custom Copilot can integrate company data, access real-time external data via APIs, and be embedded into business applications.

Microsoft Copilot is available in different versions, each with specific pricing tailored to different use cases.

• Copilot (Free): The free version of Copilot provides access to generative AI features for computer management (in Windows), online searches (in Edge), and general chatbot conversations on the web.
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• Copilot Pro: The version designed for individual users who want to fully leverage generative AI. For approximately $20 per user per month, this version grants access to Copilot across various tools such as Outlook, Word, Excel, PowerPoint, and OneNote.
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• Copilot for Microsoft 365: This version is intended for individuals and teams working with Microsoft apps. It provides access to Copilot Studio, enterprise-grade security, privacy, and compliance, along with advanced capabilities. It will be the focus of this article, as it is Microsoft’s primary AI assistant solution for business use.

In addition to the standard versions, Microsoft offers various Copilot solutions designed for specific Microsoft tools. For instance, there are Copilot solutions integrated into Microsoft Dynamics for sales and customer service teams, as well as security-focused Copilot solutions within Microsoft Purview.

Recently, Microsoft has also started launching and updating a series of "Agents" tailored to specific business sectors such as finance, customer service, and marketing, with specialized training and functionalities for these fields.

Although many Windows 11 users were initially skeptical when Microsoft began pushing Copilot, the service has grown significantly since its first preview release. Today, it is considered one of the best productivity tools in the era of artificial intelligence.

Copilot Business vs Enterprise: overview of available licenses

Before diving into the differences, let's take a moment to review the currently available licenses that provide access to the features of Copilot for Microsoft 365.

Microsoft's AI-powered digital assistant is available to business users through a range of licenses designed to meet various organizational needs, from basic productivity to advanced data management, security, and compliance solutions.

Below is a list of the main licenses that support integration with Copilot:

• Microsoft 365 E3: Designed for medium and large enterprises that require productivity tools such as Word, Excel, PowerPoint, and Teams. It includes features for managing and protecting corporate devices and digital identities. With this license, Copilot integrates to optimize content creation, automate repetitive tasks, and analyze business data.
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• Microsoft 365 E5: The most comprehensive solution, offering advanced security, threat management, business analytics, and compliance capabilities. Copilot in E5 provides a more in-depth experience, leveraging real-time data analytics and advanced AI functionalities for informed decision-making.
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• Microsoft 365 Business Standard: Ideal for teams that need core Microsoft 365 applications and collaboration tools like Teams. Copilot helps streamline document management, improve productivity, and accelerate workflows.
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• Microsoft 365 Business Premium: In addition to the features of Business Standard, this license includes advanced security tools and endpoint management. Copilot utilizes these features to ensure secure workflows and personalized automation.
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• Microsoft 365 Apps for Business & Apps for Enterprise: These licenses focus on productivity applications such as Word, Excel, and PowerPoint, with continuous updates and Copilot integration. They are ideal for organizations that do not require advanced IT functionalities.

The cost of the Copilot add-on ranges between €28 and €30 per user per month, depending on the base license.

Copilot Business vs Enterprise: introduction to security and compliance controls

As mentioned in the introduction, the main difference in adopting Copilot through different licensing plans lies in the security options and compliance with data protection regulations.

Let’s now take a look at the key security and compliance options available with different licenses, keeping in mind that the ones listed here and in the next section also apply to Microsoft Copilot.

For convenience, we will briefly describe them by dividing them into two categories: the first containing all features related to data protection and the second those related to access control.

Data protection

• ‍Sharing policies for SharePoint/OneDrive/Teams: allows the definition of internal and external sharing policies for documents in OneDrive, SharePoint sites, and Teams repositories. These policies help ensure that only authorized individuals can access sensitive data by setting limits such as who can share, which files can be shared, and with what level of permissions (e.g., view-only or edit).
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• ‍Site level privacy settings: enables the configuration of access levels for SharePoint sites and Teams channels to ensure they are classified as either public (accessible to all) or private (restricted to selected users). This ensures that sensitive content is accessible only to authorized groups, enhancing security and control.
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• ‍Audit Logs: provides tools to monitor and record all interactions with Microsoft Copilot within the organization. Administrators can conduct detailed log analysis to identify suspicious activities or verify compliance with corporate and legal regulations.

• ‍Information Protection Labels: allows the creation and application of protection labels to limit access to sensitive documents based on their sensitivity level. These labels can be configured to specify who can access the content and what actions are allowed (e.g., viewing, editing, or sharing).
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• ‍Default sensitivity labels for SharePoint Document Libraries: automates the application of sensitivity labels to all documents stored in a SharePoint library. This reduces the risk of human error, ensuring that content is classified correctly according to company policies.
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• ‍Auto-Labeling: uses artificial intelligence algorithms to automatically apply sensitivity labels to documents and content based on predefined or custom models. This is particularly useful for detecting and protecting sensitive data such as personally identifiable information (PII), credit card numbers, or other confidential data.
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• ‍Data Loss Prevention: provides tools to prevent the accidental or intentional sharing of sensitive data with unauthorized individuals. DLP policies monitor and block inappropriate actions, such as sending confidential documents via email or sharing them with unauthorized external users.
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• ‍Data Loss Prevention for Teams chat: extends DLP capabilities to Microsoft Teams conversations, preventing users from sharing sensitive information in chat messages. This includes blocking unauthorized attachments or messages containing confidential data that could be accidentally disclosed.

• ‍Retention policies: allows administrators to define retention and deletion policies for interactions with Copilot. These policies ensure that data is retained for periods required by regulations or company policies and deleted when no longer needed.
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• ‍Data classification: offers tools to create trainable classifiers that can detect, label, and organize sensitive data within the organization. This feature is particularly useful for identifying sensitive content stored in repositories such as SharePoint or OneDrive.
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• ‍Communication compliance: monitors Copilot interactions to detect communications that may contain inappropriate or confidential data. This feature helps ensure that Copilot usage complies with corporate policies and protects sensitive data from leaks or misuse.
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• ‍eDiscovery: allows administrators and legal teams to create cases for searching and managing content generated or used by Copilot. This includes the ability to place relevant data on legal hold, ensuring its availability for legal or compliance investigations.
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• ‍eDiscovery (Premium): provides advanced capabilities to search and delete user prompts and responses generated by Microsoft Copilot within supported applications. This premium version includes more sophisticated tools to manage and protect sensitive data during legal investigations or audits.

Access Controls

• Group management: allows IT administrators to centrally create, manage, and update user groups. Users can be manually added or removed from groups to ensure that only authorized individuals have access to specific resources, applications, and data. This functionality simplifies access control, ensuring that permissions reflect organizational changes such as role transfers or new hires.
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• ‍Dynamic Groups: automates user assignment to groups based on specific rules and attributes, such as job title, department, or location. For example, all employees in the IT department can be automatically added to an IT group with access to dedicated tools and resources. This feature eliminates the need for manual updates and reduces the risk of errors, ensuring that groups remain up to date at all times.

• Access reviews: provides tools for conducting periodic and systematic reviews of user access to groups, applications, and roles. Administrators can verify that users have only the necessary permissions to perform their job and revoke any access that is no longer required. This process helps maintain a high level of security by preventing unnecessary or unauthorized access.
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• ‍Privileged Identity Management: offers "just-in-time" access to privileged roles and resources, limiting the time users have such permissions. This functionality helps reduce the risk of security breaches by allowing users to obtain privileges only when strictly necessary. It also includes auditing and notifications to monitor and log the use of these permissions.
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• ‍Entitlement management: automates the entire lifecycle of access permissions, including requests, approvals, reviews, and expiration. It allows users to request access to specific resources through predefined workflows and ensures that such access is granted or removed based on operational needs and company policies.
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• Lifecycle workflows: automates the assignment and revocation of access to enterprise resources during key employee lifecycle events, such as onboarding (new hires), offboarding (resignations or terminations), and lateral transfers within the organization. For example, during onboarding, a new employee automatically receives access to the appropriate resources; during offboarding, all access is revoked to protect company data.

Copilot Business vs Enterprise: license comparison

And here we get to the core of this article: not all the options listed above are available in every license plan.

In fact, only the E5 license includes all the previously mentioned features, while the others provide different partial combinations of these features.

Let's break them down:

• Microsoft Business Standard: This entry-level package includes Sharing Policies, Site Level Privacy Settings, Audit Logs, and Group Management.
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• Microsoft Business Premium: This package offers all the features included in Business Standard, with the addition of Information Protection Labels, Data Loss Prevention, Retention Policies, Basic eDiscovery, and Dynamic Groups.
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• Microsoft 365 E3: The first Enterprise-level license plan includes all the features from Business Standard and Business Premium, along with Data Classification capabilities.

Does This Mean E5 Is the Only Valid Option? Absolutely not.

As seen above, when it comes to data protection features related to Copilot, Business Premium checks almost as many boxes as Microsoft 365 E3.

However, E3 includes one of the most critical features: Data Classification. This allows organizations to automatically detect and label data based on common types of sensitive information, such as personally identifiable information (PII), credit card numbers, and custom definitions.

There are also add-ons available for Business plans that can bridge the gap to E5 at a lower cost. For instance, Entra ID P2 and EMS + E5 can be added to Business Standard and Business Premium.

Combined, their total cost would still be lower than upgrading to E5. While these add-ons would fully cover the Access Control section, data protection capabilities would still be somewhat limited compared to the E5 plan. The most interesting feature would be Auto-labeling, available with EMS + E5.

Finally, there is an add-on called E5 Information Protection and Governance, which does not require an Enterprise license as a prerequisite. Although it provides only a subset of E5’s compliance features, it includes many options for data protection. It is available for an additional cost of approximately €8 per user per month and can be added to Business Premium.

Conclusion

Navigating through Microsoft licensing is never simple or quick, and this article has only scratched the surface of this vast landscape with its extensive range of options.

One thing is certain: There is a suitable option for every organization looking to implement Microsoft productivity software, including Copilot.

So, whether you are a small or medium-sized business or a large organization interested in purchasing a license plan to gain access to the advanced features of Copilot, but have concerns about data security and regulatory compliance, you can rest easy and choose the best option for you today.

So, why wait?

FAQ on Copilot Enterprise vs Business

What are the differences between Copilot Business and Copilot Enterprise?

The main differences lie in security and compliance. Copilot Enterprise, available with Microsoft 365 E3 and E5 licenses, offers advanced features for data protection, access control, and regulatory compliance. Copilot Business, available in Microsoft 365 Business Standard and Business Premium plans, includes only basic security options and lacks tools such as automatic data classification, auto-labeling, and advanced support for legal investigations.

Which Microsoft licenses support Copilot for businesses?

Copilot for Microsoft 365 is available with various licenses. Microsoft 365 E3 provides security and management tools for medium and large enterprises, while Microsoft 365 E5 offers the most comprehensive package with advanced data protection and compliance features. For small and medium-sized businesses, Microsoft 365 Business Standard and Business Premium provide an affordable option with a reduced set of features compared to Enterprise plans.

Does Copilot Business have the same security features as Copilot Enterprise?

No, Copilot Business only includes basic security and access management features, such as sharing policies for OneDrive, SharePoint, and Teams, site privacy settings, audit logs, and group management. Business Premium adds data protection with security labels, data loss prevention, and basic legal investigation tools with eDiscovery. Copilot Enterprise, however, offers more advanced tools for compliance management and sensitive data protection.

Which security tools are exclusive to Copilot Enterprise?

Copilot Enterprise, particularly with the Microsoft 365 E5 license, provides advanced capabilities such as automatic data classification, intelligent document labeling, advanced data loss prevention, compliance monitoring for communications, and sophisticated legal investigation tools. It also offers detailed access control with features like privileged access management and periodic access reviews.

What is the best solution for small and medium-sized businesses?

For SMBs, Microsoft 365 Business Premium is the best choice, as it includes more advanced data protection and access management tools compared to Business Standard. However, for a security level similar to an Enterprise environment, additional components like Entra ID P2 and EMS + E5 can be integrated, improving access management and information security without upgrading to Microsoft 365 E5.

How much does Copilot for Microsoft 365 cost?

Copilot for Microsoft 365 is available as an add-on, costing between €28 and €30 per user per month, depending on the base license it is activated on.

Can Copilot Business security be improved without upgrading to Enterprise?

Yes, additional security features can be integrated by purchasing add-ons like E5 Information Protection and Governance, Entra ID P2, and EMS + E5. These tools improve access control, compliance management, and data protection without requiring an upgrade to an Enterprise license.

Which companies should choose Copilot Enterprise instead of Copilot Business?

Copilot Enterprise is recommended for companies handling highly sensitive data, requiring strict compliance with regulations like GDPR and ISO 27001, needing advanced tools for data protection and management, and requiring detailed access control with security and compliance features.

Is Copilot Enterprise mandatory for ensuring business security?

No, but it is highly recommended for companies dealing with sensitive data or strict regulatory requirements. SMBs can achieve sufficient protection with Microsoft 365 Business Premium, enhanced by additional security components if necessary.

Which license provides the highest level of security with Copilot?

For maximum security and compliance, Microsoft 365 E5 is the best choice, as it includes all advanced features for data protection, compliance management, and access control.