Is Microsoft 365 Copilot worth the money?

Gartner published the report “The State of M365 Copilot” in the fall of 2024. The survey is based on 165 responses, primarily from CIOs responsible for evaluating and rolling out M365 Copilot. It focuses on topics such as value realization, information maturity/security, and adoption.

At Twoday Cloud Platforms & Security, we have worked with more than 30 customers across segments and industries in just the past six months. A discussion we always have with our customers is whether M365 Copilot is worth the investment. In this article, we combine Gartner’s findings with our own experiences, contributing to the debate on whether M365 Copilot delivers value for the money. We also provide a perspective on how one can even measure the value of M365 Copilot.

At Twoday we believe that a value realization approach that focuses solely on time saved is too narrow. Not only is it difficult to measure accurately, but more importantly: organizations risk losing sight of how M365 Copilot can elevate individual employees to new heights if they only look at the number of minutes saved during a workday.

How do you measure the value of M365 Copilot?

M365 Copilot costs $30 per user per month (at the time of writing). Only 3% of respondents believe it delivers significant value, and therefore we must assume that only 16% of the surveyed organizations have proceeded with a full rollout of M365 Copilot. Paradoxically, Gartner’s survey shows that 97% of users save time by using M365 Copilot, and 46% of users report time savings of up to 14 minutes per day.

Most organizations we speak with ask us for advice on how to calculate ROI. To measure ROI, you typically look at the license cost in relation to time savings. If you keep it that simple, our assessment is that the business case will almost always be positive. As mentioned, Gartner’s study shows that nearly 46% of respondents report saving up to 14 minutes per day. Thus, we can set up the calculation relatively easily.

What does an employee cost per hour? And does the investment pay off? The calculation might look like this:

• An employee with a gross salary of €4,500 per month costs €30 per hour
  

• 14 minutes saved per day equals 280 minutes or 4.6 hours per month

• €30 (hourly rate) × 4.6 (monthly saved time) = €138

• The monthly license price is €30
  

• €138 (value of saved time) – €30 (license price) = €108 net gain per month

So, based on this simple ROI calculation, the investment in M365 Copilot would result in an estimated €108 net monthly benefit per employee.

But…

Since only 16% of the surveyed organizations have moved forward with a full rollout of M365 Copilot, we can conclude that the method used to calculate ROI must still be lacking and/or that other factors come into play.

Gartner points out that one should distinguish between Return on Employee (ROE) and Return on Investment (ROI) – and emphasizes that ROE is not necessarily the same as ROI, as M365 Copilot offers more benefits than simply helping users save time.

This can quickly turn into an academic discussion about words and definitions. Nevertheless, we believe there are several issues with focusing solely on classic ROI calculations when assessing whether M365 Copilot truly creates value:

1. The first obvious problem is the lack of insight into how much time the respective tasks took before M365 Copilot was implemented. At best, it becomes an educated guess, typically based on a small number of employees and processes. This can easily end up as a debate over conflicting claims about how time usage is measured in one direction or another.
2. Another problem, also highlighted by Gartner, is that the time each employee saves does not necessarily provide an accurate picture of ROI. The reason is that the saved time is not always reinvested in new projects or more answered emails. Instead, it might be spent at the coffee machine with colleagues. This also has value, but it is difficult to measure.
3. In our view, M365 Copilot is not just about saving time, but largely about improving the quality of work and processes. Users can save time on the heavy lifting and instead focus on refining details, making the final product stronger. This can potentially lead to better ROI (for example, faster decision-making, improved marketing materials, more thorough documentation, etc.), even if it cannot necessarily be proven that significant time was saved.
4. Finally, it is also worth considering that employees are not always completely honest about the value M365 Copilot actually creates. We have found that many use the tool in areas where they lack competence, even though they should theoretically be able to handle the task. For example, an employee who struggles with writing may spend disproportionately long on such tasks. But because employees rarely want to admit challenges with skills they are expected to master, the value of M365 Copilot is never officially measured. This does not change the fact that the tool plays an important role in elevating employees to a new level and enabling them to leverage other skills more effectively.
   
   

What’s in it for me?

An excessive focus on ROI can also distract from what truly motivates individual users to adopt the product. Increased productivity is undoubtedly positive for any organization, but what does it mean for the individual employee who still works the same number of hours as before? We know of examples where employees have asked to work fewer hours per week because they can document that they work more efficiently – but the answer was a resounding no. Therefore, when aiming to motivate employees to use M365 Copilot, one must have a more nuanced focus than just time savings.

Want to know more? Download our whitepaper: Microsoft 365 Copilot: Security risks you need to address before deployment

Summary

Overall, we believe that a value realization approach that focuses solely on time saved is too simplistic. Partly because it is difficult to measure accurately, but more importantly because organizations risk losing sight of how M365 Copilot can elevate individual employees to new heights if they only look at the number of minutes saved during a workday.

Instead, we recommend distributing responsibility more broadly across the organization. IT departments must ensure that the product can be fully utilized without compromising security, while the business side must play a critical role in identifying the users and processes where the product can deliver the most value. They must also ensure relevant end-user training and measure value—not just in minutes saved, but in how it improves employees’ work and efficiency.

M365 Copilot creates value for most organizations

Overall, Twoday’s assessment is that if a solid foundation has been laid in terms of security and information maturity, combined with the right adoption activities, M365 Copilot will create value for most organizations. This applies both when evaluating value from a classic ROI perspective, but even more so when considering Return on Employee (ROE). However, it is necessary to invest in information maturity, security, and adoption activities. This requires both time and money, which can immediately impact the business case negatively. But again—it depends on how nuanced the business case is designed.

Information maturity and security are not only relevant in connection with M365 Copilot but should be considered a must-do for all organizations, whether they plan to adopt M365 Copilot or not.