When businesses think about adopting AI in 2026, two names come up immediately: Microsoft Copilot and ChatGPT. Both promise increased productivity, both cost around $30 per user, and both have blind spots that rarely get discussed.
In this article, we compare both tools in detail: features, pricing, data protection, and the often-hidden adoption challenges. We also show why a third option, one that is neither tied to Microsoft nor carries GDPR risks, is the better choice for many businesses.
1. Microsoft Copilot Overview
Microsoft Copilot is the AI extension for the Microsoft 365 ecosystem. It uses GPT-4o from OpenAI and is directly integrated into Word, Excel, PowerPoint, Outlook, and Teams. The idea: deploy AI where employees already work.
Strengths
- Deep Office Integration: Copilot can summarize texts in Word, create formulas in Excel, and generate presentations in PowerPoint, directly within the document.
- Meeting Summaries: In Teams, Copilot automatically summarizes meetings, identifies decisions, and creates task lists.
- Enterprise Data Access: Through Microsoft Graph, Copilot can access emails, documents, and Teams channels to provide contextual answers.
Weaknesses
- License Dependency: Copilot requires an existing Microsoft 365 Business or Enterprise license ($12–37/user/month). The AI feature then costs an additional $30/user/month.
- One Model, No Choice: Users are limited to GPT-4o. There's no option to switch between different AI models or use open-source alternatives.
- Product Fragmentation: Microsoft offers five different Copilot versions (M365, GitHub, Windows, Edge, Standalone), causing confusion in enterprises.
- Over-Permissioning: Copilot inherits the company's existing file permissions. Studies show over 15% of business-critical files are at risk due to faulty permissions.
2. ChatGPT Overview
ChatGPT by OpenAI is the world's most well-known AI chatbot. With over 64% market share, it dominates the market. For businesses, OpenAI offers the Business plan ($30/user) and the Enterprise plan (custom pricing).
Strengths
- Versatility: ChatGPT can write, code, analyze, research, and create creative content. A true all-in-one tool.
- Latest Models: Access to GPT-4o, GPT-5.2, and the reasoning model o3 for complex tasks.
- No License Dependency: ChatGPT works standalone without existing software subscriptions.
- Large Community: Thousands of Custom GPTs and a broad ecosystem of plugins and integrations.
Weaknesses
- GDPR Risks: OpenAI is a US company subject to the CLOUD Act. Data is primarily processed in the US. For a detailed analysis, read our article ChatGPT in Business: GDPR Risks.
- No EU Hosting: There's no guarantee that business data is processed exclusively in the EU.
- Only OpenAI Models: No access to Claude, Gemini, Llama, or other models. You're locked into one provider.
- Cost for Teams: At $30/user/month, a 20-person team pays $600/month, or $7,200/year. Details in our ChatGPT Price Comparison.
3. The Big Feature Comparison
How do the three tools compare feature by feature? This table shows the most important capabilities at a glance.
| Feature | Copilot | ChatGPT | Lurus |
|---|---|---|---|
| AI Models | GPT-4o (OpenAI only) | GPT-4o, GPT-5.2, o3 | 15+ models (GLM 4.7, Kimi K2, DeepSeek, Qwen & more) |
| Model Selection | No switching | Manual selection | Manual + intelligent auto-routing |
| Office Integration | Word, Excel, PowerPoint, Outlook, Teams | No native integration | 100+ tool actions |
| Web Search | Bing-based | Yes, integrated | Yes, integrated |
| Document Analysis | Only within M365 | Upload (PDF, Docs) | Upload (PDF, Docs, Images) |
| Team Management | Via Microsoft Admin Center | Admin Console | Built-in team management with roles & policies |
| Image Generation | DALL-E 3 | DALL-E 3 | FLUX.1, Stable Diffusion XL |
| Voice Input | Yes (in Teams) | Yes | Yes (Whisper-based) |
| Local Chat Storage | No | No | Yes, chats stored locally in browser |
| Open Source Models | No | No | Yes (Llama, Mistral, Qwen & more) |
The result: Copilot scores on Office integration, ChatGPT on versatility. Lurus offers the widest model selection, exclusive features like local chat storage, and the only complete EU hosting.
4. What Does a Team Really Pay?
The price comparison becomes especially interesting with Copilot because the required M365 license is often overlooked. The real cost per user is significantly higher than the advertised $30.
Copilot: The Hidden Total Cost
Copilot license ($30) + M365 license ($12–37) = actual cost
M365 Basic + Copilot
$42
/user/month
M365 Standard + Copilot
$43
/user/month
M365 Premium + Copilot
$67
/user/month
| Team Size | Copilot (incl. M365) | ChatGPT Business | Lurus | Savings |
|---|---|---|---|---|
| 1 User | $30 + M365 | $20–30 | 12€ | up to 82% |
| 5 Users | $210–335 | $100–150 | 29€ | up to 91% |
| 20 Users | $840–1.340 | $400–600 | 69€ | up to 95% |
| 50 Users | $2.100–3.350 | $1.000–1.500 | 149€ | up to 96% |
For 20 users, a company pays up to $1,340/month for Copilot, $600/month for ChatGPT Business, but only €69/month for Lurus Agency. That's savings of up to 95%. More details on our pricing page.
Up to 95% cheaper than Copilot & ChatGPT
15+ AI models, GDPR-compliant, EU hosting. From €12/month.
Try Lurus for free5. GDPR & Data Protection: A Critical Look
For European businesses, data protection isn't optional, it's mandatory. How do the three tools compare on GDPR compliance?
| Criteria | Copilot | ChatGPT | Lurus |
|---|---|---|---|
| Company HQ | USA (Redmond) | USA (San Francisco) | Germany |
| CLOUD Act | Yes, subject to CLOUD Act | Yes, subject to CLOUD Act | No, German company |
| Data Processing | EU data centers (Microsoft Azure) | Primarily USA | Exclusively EU (OVH & IONOS) |
| Hosting Provider | Microsoft Azure (US corporation) | OpenAI/Microsoft infrastructure | OVHcloud (FR) & IONOS (DE) |
| AI Training with Data | No (Business plans) | Opt-out possible (Business) | No, never |
| Local Chat Storage | No | No | Yes, chats stay local |
The data protection verdict: Copilot has an edge over ChatGPT through EU data centers but remains subject to the US CLOUD Act. Only Lurus, as a German company with purely European hosting partners, offers complete GDPR compliance without legal gray areas. Learn more on our security page.
6. The Adoption Problem: Why Copilot Fails in Practice
Despite billions in investment, reality is sobering: only 3.3% of Microsoft 365 users pay for Copilot. That's about 15 million out of 450 million users. And the numbers are getting worse, not better.
The Numbers Speak for Themselves
- Market Share Loss: Copilot's market share among paying AI users dropped from 18.8% to 11.5%, while Google's Gemini rose to 15.7%.
- Only 6% in Production: Just 6% of enterprises have moved generative AI projects beyond the pilot phase.
- 10% Seat Utilization: Some companies actively use only 10% of purchased Copilot licenses after rollout.
The Main Reasons
- Data Governance: Before a Copilot rollout, companies must audit and clean their entire file structure, which often takes months.
- Unclear ROI: CIOs cannot quantify productivity gains and struggle to justify the $30/user budget.
- Confusion: Five different Copilot versions, different features, no unified vision.
What does this mean for you? If you're evaluating Microsoft Copilot, factor in not just the license costs but also a months-long preparation project for data governance. Or choose a solution that's ready to use immediately.
7. The Third Option: Why Lurus Outperforms Both
Neither Copilot nor ChatGPT solve all the requirements European businesses have. Copilot offers deep Office integration but at the highest price with governance risks. ChatGPT is versatile but without GDPR guarantees. Lurus combines the strengths of both tools, without their weaknesses.
What Makes Lurus Different
- 15+ AI Models Instead of One: Instead of being locked to GPT-4o, choose from Llama, Qwen, Mistral, GPT-OSS, and many more, or let the intelligent auto-routing select the best model for each task.
- 100% GDPR Compliant: German company, EU hosting with OVHcloud (France) and IONOS (Germany), no CLOUD Act, no AI training with your data.
- Ready Immediately: No months-long data governance project. Create an account, invite your team, start working.
- Up to 95% Cheaper: From €12/month for individual users, from €3.45/user in the Agency plan.
- 100+ Tool Actions: Not locked to Microsoft. Connect the tools you already use. More on our integrations page.
- Local Chat Storage: Unique: Chats are stored locally in the browser. Your data never leaves the device.
8. Conclusion: Which Tool Fits Your Business?
The choice between Microsoft Copilot, ChatGPT, and Lurus depends on your priorities:
Choose Copilot if you already work deeply in the Microsoft 365 ecosystem, have the budget for $42–67/user/month, and are prepared to conduct a data governance project.
Choose ChatGPT if you need the latest OpenAI models and GDPR compliance isn't a critical requirement for you.
Choose Lurus if you need GDPR compliance, want to use more than one AI model, don't want to be tied to Microsoft, and expect fair value for money. For most European businesses, this is the smartest choice.
Still unsure? Read our related articles:
9. Frequently Asked Questions
Which is better: Microsoft Copilot or ChatGPT?
It depends on your use case. Copilot excels at Microsoft 365 integration (Word, Excel, PowerPoint) but requires an M365 license and costs $30/user/month on top. ChatGPT is more versatile and cheaper to start with but has GDPR concerns. Lurus offers ChatGPT-like flexibility with more models and GDPR compliance, starting from €12/month.
How much does Microsoft Copilot cost per user?
Microsoft 365 Copilot costs $30 per user/month (annual billing). A Microsoft 365 Business or Enterprise license is required. Total costs are $42–67 per user depending on the M365 plan. Lurus offers comparable AI features from €3.45 per user.
Is Microsoft Copilot GDPR compliant?
Microsoft promotes data protection features and processes data in EU data centers. However, as a US company, Microsoft is subject to the CLOUD Act, potentially enabling US government data access. Additionally, Copilot's Microsoft Graph access poses over-permissioning risks. Lurus hosts all data exclusively in the EU with European providers.
Why do only 3% of Microsoft 365 users use Copilot?
According to recent studies, Copilot adoption is only 3.3%. Main reasons: high costs ($30/user on top), data governance issues (over-permissioning), difficult-to-measure ROI, and confusion from five different Copilot versions. Many companies pause rollouts for months-long data cleanup audits.
What AI models does Microsoft Copilot use?
Microsoft Copilot primarily uses GPT-4o and GPT-4 Turbo from OpenAI but can only access models provided by Microsoft. ChatGPT also only offers OpenAI models. Lurus provides access to over 15 open-source models (Llama, Qwen, Mistral, GPT OSS) and offers premium models like GPT 5.x, Claude Opus 4.x, and Gemini Pro on request. All EU-hosted.
Is there an alternative to both Copilot and ChatGPT for businesses?
Yes, Lurus is a GDPR-compliant alternative that combines the strengths of both tools: versatile AI chat capabilities like ChatGPT, team management for enterprises, and complete EU hosting. From €12/month for individual users or €3.45/user in teams, without Microsoft license dependency.