With a Microsoft 365 subscription but no Copilot license, Microsoft 365 Copilot Chat utilizes internet search data and the prompt context/current conversation to generate answers. It does not automatically access your organization's data [Not B], such as Microsoft Teams chats, emails, or OneDrive files. You can only use company data if you explicitly upload files into the chat, while retaining enterprise-grade security.
Here is a breakdown of capabilities without a Copilot license:
[E] Internet Search Data: Yes. Copilot uses Bing to fetch up-to-date information.
[Not A] Chat Data in Microsoft Teams: No. It cannot access your Teams chats, emails, or files in SharePoint/OneDrive by default.
[C] Prompt Context: Yes. It uses the immediate context of your prompt to generate a response.
[F] Conversation History: Yes. Your current session's prompts and responses are used, and with enterprise data protection, these conversations are protected.
Reference:
https://teaching.utoronto.ca/tool-guides/microsoft-copilot/