← Field Notes
·6 May 2026·4 min read

Two-Thirds of Copilot Licences Go Unused. Check Your AI Spend.

Microsoft Copilot data shows 64% of paid seats sit idle and 44% of lapsed users cite distrust. Before buying AI tools, start with the workflow.

Microsoft sells Copilot at $30 per user per month. The pitch: 14 minutes saved per employee per day, embedded directly in Word, Excel, Outlook, and Teams. For a 15-person accounting firm, that’s $5,400 per year. Sounds reasonable — until you look at who actually opens it.

According to data tracked by Recon Analytics through January 2026, 64% of Microsoft 365 Copilot seats are dormant. Not occasionally idle. Dormant. Two in three employees with paid access don’t use it in a given month. At $30 per seat, that’s roughly $3,456 per year in dead spend for that 15-person firm — money spent on a tool that sits in the toolbar like an unused gym membership.

The activation gap is only part of the story. Recon Analytics tracked Copilot’s accuracy Net Promoter Score across three points: -3.5 in July 2025, crashing to -24.1 in September, and recovering slightly to -19.8 in January 2026. A negative NPS means more detractors than promoters. Among users who stopped using Copilot entirely, 44.2% cited distrust of its answers as the primary reason.

The preference data is more telling. When employees have access to both Copilot and ChatGPT, 76% choose ChatGPT. When all three major platforms — ChatGPT, Gemini, and Copilot — are available with equal friction, Copilot’s share falls to 8%. But when Copilot is the only tool available, adoption reaches 68%. That gap reveals something important: most Copilot usage is driven by employer mandate, not employee choice.

64%

Of paid Copilot seats sit idle

Recon Analytics, Jan 2026

-19.8

Accuracy NPS score

Down from -3.5 in Jul 2025

44%

Of lapsed users cite distrust

Primary reason for stopping

Copilot is a capable tool used badly by most organisations. The pattern repeats across every AI purchase: a business buys seats for the whole team, sends a “Copilot is now available” email, and waits for productivity to appear. It doesn’t.

Business.com’s 2026 Small Business AI Outlook found that while 57% of US small businesses now invest in AI, only 30% of employees use it daily. Seven percent of businesses publicly endorse AI without implementing it at all. We’ve written before about the gap between AI adoption and AI value among Australian SMEs — only 5% report getting real value from their tools, per Deloitte. The pattern is the same: buying is easy, embedding is hard.

The businesses getting value — the ones reporting 5.6 hours saved per employee per week, per Business.com — share one trait. They started with a specific workflow, not a general tool. They identified that document drafting was taking three hours, or that data entry consumed every Monday morning, or that client follow-up emails were falling through the cracks. Then they matched a tool to that workflow, trained the people doing it, and measured whether it stuck.

AI tool preference when all platforms available

Source: Recon Analytics, January 2026

ChatGPT
65%
Gemini
20%
Microsoft Copilot
8%

Accounting firms and law practices are the primary target market for Microsoft 365 Copilot. They’re heavy Microsoft 365 users, their work is document-intensive, and the AI integration sounds like a natural fit. Many are already being pitched Copilot by their IT providers or Microsoft partners.

Before signing up, ask one question: what specific task will each person use this for? If the answer is vague — “it’ll help with emails” or “it should speed things up generally” — the data says you’ll join the 64%. The firms seeing returns are more specific. A tax team using Copilot to draft client correspondence from working papers. A paralegal using it to summarise long contracts. A bookkeeper using it to reconcile data across spreadsheets. Each use case is narrow, trainable, and measurable. The rest of the firm doesn’t need a licence.

This is fundamentally a cost intelligence question. The cost of AI isn’t the subscription. It’s the subscription multiplied by the gap between how many seats you bought and how many actually work.

Audit what you’re already paying for. Check your Microsoft 365 admin centre for Copilot usage reports — they’re built in. Check ChatGPT Team or Claude for Business dashboards if you have those. For any tool with less than 40% active usage, you have three options: train the non-users on a specific workflow, reassign the licences to people who will use them, or cancel.

Then apply the same test before buying anything new. Name the task. Name the person. Set a 30-day check. If you can’t do all three, you’re buying a gym membership.

Key takeaways

64% of Microsoft 365 Copilot seats are dormant in a given month, according to Recon Analytics data through January 2026 — meaning most businesses are paying for AI licences nobody uses.
When employees can choose between ChatGPT, Gemini, and Copilot, only 8% pick Copilot. Adoption reaches 68% only when it’s the sole option — suggesting most usage is mandate-driven, not value-driven.
Businesses reporting real AI time savings (5.6 hours per employee per week) share a common approach: they started with a specific workflow to automate, not a general tool to deploy.
Before buying AI seats for your team, name the task, name the person who’ll use it, and set a 30-day usage check. If you can’t, the seat will likely go unused.

Sources

Redress Compliance — Microsoft Copilot Adoption Reality 2026

Business.com — 2026 Small Business AI Outlook Report

Stackmatix — Microsoft Copilot Adoption Statistics & Trends (2026)

Assumptions & methodology
  1. The 64% dormant seat figure is from Recon Analytics data as reported by Redress Compliance and Stackmatix, measured through January 2026. ‘Dormant’ means the user did not actively use Copilot in the measurement month. Some seats may see occasional use in other periods.
  2. The $3,456 annual waste estimate for a 15-person firm assumes all 15 employees have Copilot licences at $30/user/month × 12 months × 64% dormant rate = $3,456. Actual waste depends on how many seats are purchased and specific usage patterns.
  3. The 5.6 hours/week saved figure is a US average from Business.com’s 2026 Small Business AI Outlook, surveying employees who actively use AI tools. This represents time saved among active users, not across all employees. The figure is not Australian-specific.
  4. User preference data (ChatGPT 65%, Gemini 20%, Copilot 8% in equal-friction scenarios) is from Recon Analytics via Stackmatix. These figures reflect scenarios where all three platforms are equally available to employees without additional friction.

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Field Notes are general commentary on AI trends for Australian businesses. They don’t constitute professional advice. Talk to your accountant, lawyer, or IT adviser before acting on anything specific to your situation — or talk to us if you want help working out where AI fits.

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