👉 Thinking of building your first Copilot? Drop us a message with your use case. We’ll tell you if one license is enough to unlock it. Let’s get started.
About four months ago, we published a blog post recommending that companies take their first steps into Microsoft Copilot Studio with a Pay-as-you-go plan. It was a great starting point — low risk, low commitment, and perfect for experimentation.
Today, we’re refining that advice.
Yes, start with Pay-as-you-go, but combine it with just one Microsoft 365 Copilot license. Why? Because that one license unlocks powerful features that fundamentally change what you can build and how well it performs.
It might sound like a small step, but the impact is big — and here’s why.
One License, Many Doors Open
When your AI agent shares a tenant with just one Microsoft 365 Copilot license, you suddenly gain access to capabilities that are otherwise restricted or significantly limited. Think of it as the key that unlocks Microsoft’s most advanced AI features, including:
Access Larger Files — Up to 200MB via SharePoint
Without a Copilot license, generative AI can only process PDF, DOCX, and PPTX files up to 7MB from SharePoint. That’s barely enough for a decent PowerPoint deck or an annual report. But with Copilot in place — even one license in your tenant — you unlock file processing up to 200MB, making it feasible to work with real-world documents like product catalogs, whitepapers, or detailed financial reports.
File ≤ 200MB vs File > 200MB: What’s the Impact?
Files larger then 200MB (with a maximum of 512MB) can be stored in SharePoint and are returned by a Microsoft Graph search, but aren’t processed by generative answers. As an alternative, you can upload your own files, which can be up to 512 MB in size.
| Feature | File ≤ 200MB | File > 200MB |
|---|---|---|
| ✅ Processed by Generative Answers | Yes | ❌ No |
| ✅ Used in Enhanced Search / Semantic Indexing | Yes (if Copilot license is present) | ❌ Not processed |
| âś… Queried through SharePoint / Microsoft Graph | Yes | Partially (metadata indexed, content ignored) |
| ✅ Supports real-time Q&A over file contents | Yes | ❌ Not available |
| ⚠️ Workaround needed | No | Yes — see below |
If files relevant for your conversational AI experience exceed the size limitation, Microsoft recommends three workarounds:
1. Split the File
Break large files into smaller parts (e.g., “Part 1”, “Part 2”), each below 200MB. This is the easiest method.
2. Upload Directly in Copilot Studio
Copilot Studio lets you upload files up to 512MB directly (instead of referencing them via SharePoint). These files can be chunked and processed for Q&A. But this works best for static content rather than dynamic libraries.
3. Use Azure OpenAI
Connect large documents to a custom RAG pipeline using Azure OpenAI, where you control the chunking and retrieval yourself. This is the most scalable and powerful — but also the most complex — approach.
Turn on Enhanced Search with Semantic Indexing
One of the biggest leaps forward is the ability to turn on Enhanced Search Results. This means your AI agent can tap into Microsoft’s semantic indexing engine, also known as vector indexing.
What does that mean in practical terms?
âś… Smarter, context-aware responses
âś… Relevance ranking across long documents
âś… Better handling of internal SharePoint content
âś… Faster and more accurate knowledge retrieval
This is especially powerful if you’re building AI copilots for knowledge workers — think HR assistants, policy bots, or legal Q&A tools.
You Stay in Control
You don’t need to license every user (yet). By starting with a single license in your tenant — and assigning it to the “maker” (the person creating or configuring your AI solutions) — you get the full feature set for building, testing, and running proof-of-concepts or pilots. You can scale later if needed, but there’s no reason to hold back now.
AI Isn’t Slowed Down by Limits — If You Have the Key
Many organizations trying out Microsoft Copilot Studio hit a wall quickly: “Why is this file not working?” “Why is search not finding the right stuff?” The answer often boils down to: no Copilot license = feature restrictions.
But the good news is: one license is enough to get started the right way.
Summary: What You Unlock with Just One Copilot License
| Feature | Without Copilot | With One Copilot License |
|---|---|---|
| Max SharePoint File Size | 7 MB | 200 MB |
| Enhanced Search / Semantic Indexing | ❌ | ✅ |
| Vector Indexing | ❌ | ✅ |
| Support for PDF, DOCX, PPTX (up to 512 MB) | Limited | âś… |
| Generative Answers from SharePoint | Limited | Fully enabled |
Thinking of Building a Copilot?
If you’re serious about leveraging AI in your organization, don’t let artificial limits hold you back. Get a single Microsoft 365 Copilot license, and you’ll open up a world of opportunity for search, document processing, and knowledge-based copilots.
Reality Check: Not sure if you need this for your use case?
Send us a message with what you’re working on — we’ll tell you if one license is enough to unlock it.
