Key takeaways
- Copilot combines language models with Bing search and, for work accounts, Microsoft Graph data.
- It relies mainly on OpenAI models hosted in Azure, plus Microsoft's own and other providers' models.
- Copilot in Excel needs a Copilot-enabled Microsoft 365 plan and well-structured tables.
- Use Researcher for cited research and Analyst for data; Agent Builder for simple agents, Copilot Studio for advanced ones.
- Copilot's data centres use energy and water, which Microsoft aims to offset with water-positive goals.
Microsoft Copilot uses large language models, mainly from OpenAI along with Microsoft's own models and, in some Microsoft 365 features, models from other providers, combined with Bing search and, for work accounts, your Microsoft Graph data. I build AI products across providers, so this page covers what Copilot uses, OpenAI's role, image generation, Copilot in Excel, using it without signing in, Researcher versus Analyst, Copilot Studio versus Agent Builder, sentence checking, water use and practical examples.
What does Copilot use?
Copilot uses large language models to generate answers, grounded with Bing web search for current information and, in Microsoft 365 Copilot, with your work data from email, files, chats and calendars through Microsoft Graph, respecting your permissions.
Also asked as: copilot examples of use
Microsoft orchestrates these pieces: it rewrites your request, retrieves relevant web or work content, sends it with your prompt to a model, and applies safety filters to the output. GitHub Copilot similarly uses language models with context from your open files and repository to suggest code. The exact models change as Microsoft updates its services, and some products let users or administrators choose among available models for particular tasks.
Does Copilot use OpenAI?
Yes, largely. Microsoft's Copilot products have been built mainly on OpenAI's GPT models through Microsoft's partnership with OpenAI. Microsoft has also introduced its own models and, in some Microsoft 365 features, added options from other providers such as Anthropic.
Microsoft hosts OpenAI models in Azure, so Copilot requests are processed within Microsoft's infrastructure under its privacy and compliance commitments rather than sent to OpenAI's consumer services. GitHub Copilot offers a model picker with options from several providers for chat. Model choices evolve frequently, so check Microsoft's current documentation if you need to know which model handles a specific feature, especially for compliance reviews or evaluating answer quality.
What does Copilot use for image generation?
Copilot's image creation has used OpenAI's image models, starting with DALL-E 3, and Microsoft has since added newer models, including its own MAI image model. The feature is available in the Copilot app and Microsoft Designer.
Images carry content credentials indicating AI generation, and safety filters block requests for harmful content, real public figures in misleading contexts, or copyrighted characters. Usage limits depend on your plan. For best results, describe subject, style, lighting and composition clearly, and iterate with follow-up edits. Check usage rights before commercial use, and label AI-generated images where appropriate. The underlying model may change as Microsoft updates the service, which can change the image style.
Can you use Copilot in Excel?
Yes, with a Microsoft 365 plan that includes Copilot. Select the Copilot button on the Home tab to analyse data, create formulas, add columns, highlight patterns, build charts and summaries, and ask questions about your table.
Also asked as: can i use copilot in excel
Copilot works best with data formatted as an Excel table with clear headers, saved to OneDrive or SharePoint. Make specific requests, such as calculate monthly growth in a new column or show the top five products by sales. Copilot can also use Python in Excel for advanced analysis. Always check generated formulas and results, since misread columns or ambiguous requests can produce wrong outputs, and keep a copy of the original data.
Can you use Copilot without signing in?
Yes, in limited form. The consumer Microsoft Copilot website and app allow some use without signing in, but signing in with a Microsoft account unlocks longer conversations, saved history, image creation and more features.
Also asked as: can i use copilot without signing in
Microsoft 365 Copilot, which works inside Word, Excel, Outlook and Teams with your work data, always requires signing in with a licensed account, since it accesses your organisation's content. Signed-out usage may have stricter limits on conversation length and features. For privacy, review what is stored when you sign in, and adjust settings such as personalisation and history in your Microsoft account. On shared computers, use private windows and sign out afterwards.
When should you use Copilot Researcher vs Analyst?
Use Researcher for multi-step research that combines web sources with your work content, producing a structured report with citations. Use Analyst for data analysis, where it reasons over spreadsheets and data files, often running Python, to find trends and build insights.
Also asked as: when to use copilot researcher vs analyst
Researcher suits questions like preparing a market overview or summarising everything about a client before a meeting; Analyst suits tasks like forecasting sales from a spreadsheet or explaining anomalies in survey data. Both take longer than normal chat because they plan and iterate. Verify citations and calculations, especially before sharing results. Availability depends on Microsoft 365 Copilot licensing, so check whether these agents appear in your Copilot app.
When should you use Copilot Studio vs Agent Builder?
Use Agent Builder, inside Microsoft 365 Copilot, for quick, lightweight agents grounded on specific files, sites or instructions for yourself or a team. Use Copilot Studio for advanced agents with custom workflows, connectors, actions, authentication and organisation-wide deployment.
Also asked as: when to use copilot studio vs agent builder
Agent Builder needs no development: describe the agent, add knowledge sources and share it. Copilot Studio is a low-code platform for makers and developers, supporting topics, triggers, Power Platform connectors, external APIs, multiple channels such as websites and Teams, analytics and governance. Many organisations prototype in Agent Builder and move to Copilot Studio when agents need integrations, approvals or broader rollout. Licensing and admin policies determine who can create and publish agents.
Does Copilot use water?
Indirectly, yes. Copilot runs in data centres that use electricity and, in many cases, water for cooling, as all large cloud services do. Each request contributes a small amount to that overall consumption.
Microsoft has published sustainability goals, including becoming water positive by 2030, and has announced data centre designs that avoid evaporative water use for cooling in new facilities. Actual water use per query varies by location, climate and cooling technology, and precise per-prompt figures are not routinely published. Individuals can reduce waste by avoiding unnecessary regenerations, while organisations can choose efficient models and track the environmental impact of AI workloads.
Can you use Copilot to check sentences?
Yes. Ask Copilot to check grammar, spelling, clarity or tone, for example: check this sentence for grammar and suggest a clearer version. It explains changes and offers alternatives, in Word, Outlook or the Copilot app.
Microsoft Editor and Word's built-in checks catch spelling and grammar as you type, while Copilot helps with rewriting, tone adjustment and explaining why a sentence is unclear. Give context, such as audience and formality, for better suggestions. Review edits rather than accepting them blindly, since AI can change meaning or introduce unnatural phrasing. For learners, asking Copilot to explain each correction helps you improve your writing instead of just fixing it.
What are some examples of using Copilot?
Common uses include summarising long email threads in Outlook, drafting documents in Word, creating slides in PowerPoint, analysing tables in Excel, recapping Teams meetings, writing code with GitHub Copilot, and answering questions with web search in the Copilot app.
Students use it to explain concepts, plan study schedules and get feedback on drafts. Professionals use it to prepare for meetings by asking what they need to know about a client, to turn notes into action items, and to draft replies. Developers use GitHub Copilot for boilerplate, tests and explanations of unfamiliar code. In every case, review outputs and keep sensitive information within approved accounts and policies.
Sources
GenAI engineer and AI product builder with 2+ years shipping production-grade AI systems: RAG pipelines, fine-tuned LLMs, hybrid retrieval and multi-modal apps across vision, speech and OCR, architected end to end from ingestion to deployment. Leads engineering for SCULT INDIA's 14-member team, founded the 500+ member TechVerse Enclave community and has mentored 200+ students. Three hackathon first prizes: Changethon 2025 (IIT Roorkee), Product Genesis at Vividhotsava 2025 (CSJMU) and BYTEBATTLE (MeetKats).
Open to GenAI roles, hackathon judging, mentorship sessions and guest talks at colleges. For campus sessions the inviting institution covers the visit end to end: travel (a First AC train ticket for journeys up to five hours, a flight for anything longer), accommodation, meals, and pickup and drop; the honorarium and workshop fees are negotiable on WhatsApp or on the call, and requests are welcome from institutions that can cover the visit this way. Email pranjulrathour41@gmail.com.
