AI tools are everywhere—and if you’re a small business leader, you’ve probably been asked (or asked yourself):
“Should we be using Copilot or ChatGPT?”
It’s a great question. But the answer depends on what you’re trying to do, how your team works, and what kind of experience you want to create.
This article breaks down the differences between Microsoft Copilot and ChatGPT, including their versions, customization capabilities, memory behavior, and what to consider when choosing between them. Note – this article was written with the help of AI as a thought partner.
What’s the Difference?
- Microsoft Copilot is designed to work inside Microsoft 365 tools like Word, Excel, Outlook, and Teams. It’s context-aware—meaning it uses the document or email you’re working on to help you in real time.
- ChatGPT is a standalone AI assistant that you can use for writing, brainstorming, summarizing, and more. It’s flexible, creative, and highly customizable—especially in its paid versions.
Comparison Table: Versions, Features, and Memory
| Feature / Version | Microsoft Copilot (Free) | Copilot Pro | Copilot for Microsoft 365 | ChatGPT Free | ChatGPT Plus | ChatGPT Team | ChatGPT Enterprise |
|---|---|---|---|---|---|---|---|
| Platform | Web, Edge, Windows | Web, Word, Excel, Outlook (personal) | Word, Excel, Outlook, Teams (business) | Web, mobile app | Web, mobile app | Web, mobile app | Web, mobile app |
| Model Used | GPT-4 Turbo (web only) | GPT-4 Turbo | GPT-4 Turbo | GPT-3.5 | GPT-4 Turbo | GPT-4 Turbo | GPT-4 Turbo |
| Best For | General AI chat | Personal productivity | Enterprise productivity | Casual use | Power users | Small teams | Large organizations |
| Context Awareness | No document context | Yes (in Microsoft 365 apps) | Yes (deep integration with 365 data) | No | No | No | No |
| Customization (Tone, Style) | None | Limited (adapts to current doc/email tone) | Limited (based on content/context) | None | Moderate (via custom instructions) | High (custom GPTs, shared settings) | Very high (admin-level control) |
| Memory / Personalization | None | None | Contextual only (no persistent memory) | None | Yes (remembers preferences, facts) | Yes (team memory, shared GPTs) | Yes (enterprise-grade memory) |
| What Happens If You Cancel? | Nothing to retain | No memory to lose | Data stays in your Microsoft 365 tenant | Nothing to retain | Memory is paused, not deleted | Memory retained, inaccessible until resumed | Data retained per enterprise policy |
| Security & Compliance | Microsoft account-level | Microsoft account-level | Enterprise-grade (Microsoft 365 compliance) | OpenAI account-level | OpenAI account-level | Team-level controls | SSO, encryption, admin console |
How Customization and Memory Work
Microsoft Copilot
- Customization: You can set preferences in some apps (like Outlook or Word) for tone, length, or style—but these are session-based or app-specific.
- Memory: Copilot does not have persistent memory. It adapts to the content you’re working on in real time, but it doesn’t remember your preferences across sessions or apps.
- Context Awareness: Copilot is highly effective when you give it the right context. For example, if you attach a tone-of-voice guide, branding document, or creative brief from OneDrive or SharePoint, Copilot can use that to shape its responses—without needing to “remember” anything long-term.
If you have multiple Microsoft apps open, Copilot only accesses the one you’re actively working in. It doesn’t pull context from other open apps or documents.
This makes Copilot especially powerful for secure, compliant brainstorming and content creation—because you can guide it with documents you control, without exposing your data to external systems or persistent memory.
ChatGPT
- Customization: You can set custom instructions (e.g., “speak in a friendly tone” or “write like a consultant”) and build custom GPTs with specific behaviors.
- Memory: In Plus, Team, and Enterprise plans, ChatGPT can remember your tone, preferences, and even facts you’ve shared. You can view, edit, or delete this memory at any time.
- Cross-Session Continuity: Memory persists across sessions, so it can feel like you’re working with a consistent assistant who knows your style.
Risks and Considerations of ChatGPT’s Memory
While memory in ChatGPT can be incredibly helpful, it’s important to understand the trade-offs:
| Risk / Consideration | What It Means |
|---|---|
| Misremembering | ChatGPT might remember something incorrectly or apply a tone you no longer want. |
| Overfitting | If your tone or audience changes, ChatGPT might keep writing in your old style unless you update it. |
| Data Sensitivity | In Free and Plus plans, your data may be used to improve the model unless you turn off chat history. |
| Team Oversight | If multiple people use the same account or workspace, memory could reflect one person’s preferences over others. |
| Privacy Awareness | Users may not always realize what’s being remembered or how it’s being used unless they check settings. |
If you’re using ChatGPT for business, consider Team or Enterprise plans to ensure your data isn’t used for training and you have full control over memory.
Data Privacy and Governance
| Topic | Microsoft Copilot | ChatGPT (OpenAI) |
|---|---|---|
| Data used to train model? | No. Your data is not used to train Microsoft models. | Free & Plus: Yes, unless chat history is off. Team & Enterprise: No. |
| Where is memory stored? | Not applicable (no memory). | On OpenAI’s servers (encrypted, user-manageable). |
| Who governs usage? | Microsoft 365 privacy and compliance policies. | OpenAI’s usage policies and privacy terms. |
| Can you delete memory? | Not applicable. | Yes, at any time via settings. |
Which One Should You Use?
| If you want to… | Use… |
|---|---|
| Work inside Word, Excel, Outlook, or Teams | Microsoft Copilot |
| Get help writing emails or documents in your voice | ChatGPT Plus or Team, or Copilot with attached tone/branding docs |
| Summarize meetings or search internal files | Copilot for Microsoft 365 |
| Brainstorm ideas or write social media posts | ChatGPT, or Copilot with attached creative briefs or brand docs |
| Build a custom AI assistant for your team | ChatGPT Team or Copilot Studio |
| Ensure enterprise-grade security and compliance | Copilot for Microsoft 365 or ChatGPT Enterprise |
Final Thoughts
Both Copilot and ChatGPT are powerful—but they serve different purposes.
- Copilot is ideal for secure, real-time assistance inside Microsoft 365. It doesn’t need to remember you—it just needs the right context, which you can provide through the documents you already use.
- ChatGPT is better if you want a persistent assistant that learns your style and preferences over time, especially for creative or exploratory work.
And if you’re not sure which one is right for you? That’s okay too. We’re here to help you
Addition Note: What guarantee is there that ChatGPT data will be deleted?
Can You Trust That ChatGPT Memory Won’t Be Used or Transferred?
- OpenAI’s Current Policy (as stated)
OpenAI has publicly committed that:
- ChatGPT Team and Enterprise data is not used to train their models.
- ChatGPT Plus and Free users’ data may be used to improve models unless chat history is turned off.
- Users can view, manage, and delete memory entries.
However, these policies are not contractual guarantees. They are governed by OpenAI’s Terms of Use and Privacy Policy, which OpenAI can update at any time.
- Recent Legal Developments (May 2025)
A U.S. federal court has issued a data preservation order requiring OpenAI to retain all ChatGPT user conversations indefinitely—including those users believed they had deleted
This order was issued in the context of ongoing litigation, including a lawsuit from The New York Times alleging copyright infringement. The implications are significant:
- Deleted conversations are not actually deleted under this order.
- All user-generated content is being retained, regardless of user settings.
- This raises serious concerns about data privacy, ownership, and future use.
- What This Means for You
Even if OpenAI’s current policy says your data won’t be used to train models:
- There is no legal guarantee that this won’t change in the future.
- Court orders can override privacy settings, as we’re seeing now.
- Data stored on OpenAI’s servers could be subject to future use, transfer, or exposure, especially if OpenAI is acquired, restructured, or compelled by law.
Summary: Microsoft vs. OpenAI on Legal Exposure
| Topic | Microsoft Copilot | ChatGPT (OpenAI) |
|---|---|---|
| Data used to train model? | No | Free & Plus: Yes (unless chat history is off); Team & Enterprise: No |
| Legal orders affecting data | None reported | Yes – court-ordered data preservation for all chats |
| Memory behavior | No persistent memory | Persistent memory in paid plans |
| Data governance | Microsoft 365 compliance framework | OpenAI’s evolving privacy policy |
| Ownership of content | You own the content Copilot helps generate | You own your content, but OpenAI retains broad rights under its terms |
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