AI Free Tier Capability Comparison

Enterprise Context - 300-400 Users - Mixed M365 E3 + E5 Licenses
Current as of March 2026 Cybersecurity and advisory use focus SMB / Midmarket perspective
Key Framing: Microsoft Copilot's "free" experience (Copilot Chat with commercial data protection) is already bundled into E3/E5 licenses -- it is not a public free tier but an entitlement you're already paying for. The other three platforms offer public free tiers with no M365 dependency.
Usage Limits and Availability
Dimension Claude Sonnet 4.5 (Free) ChatGPT GPT-5.3 (Free) Gemini 2.5 Flash (Free) Copilot Chat E3/E5 Bundled
Message Limit
DynamicRolling 5-hr window; no fixed daily quota.
10 / 5 hrsFalls back to GPT-5.3 Mini after cap.
100-250/dayAPI: 5-10 RPM. Consumer app more generous.
Not publishedPriority to licensed paid users during high demand.
Model QualityFree tier vs. flagship
Same modelFree users get Sonnet 4.5 -- same as paid. No degraded fallback.
PartialGPT-5.3 free, falls back to Mini. No reasoning model access.
PartialFlash 2.5 free; Gemini 3 Pro requires paid.
Copilot ChatFull web-grounded chat. No M365 app integration.
Data PrivacyTraining / tenant boundaries
Data may trainFree conversations may be used for training. Opt-out available. No BAA.
Data may trainFree tier data may improve models. No enterprise controls.
Data may trainConsumer free: data used for product improvement.
Commercial Data Protection E3/E5Prompts NOT used to train models. Data stays within tenant boundary.
Uptime SLA NoneNoneNone
Best-effortLicensed users get priority. No formal SLA on bundled chat.
Core Capability Comparison (Free Tier)
Capability Claude Free ChatGPT Free Gemini Free Copilot Chat (E3/E5)
Content and Reasoning
Long-form writing / analysisExcellentGoodGoodGood
Context WindowFree tier 200K tokens 128K tokens 1M tokens Largest
~32KWeb-grounded; no long document upload.
Advanced Reasoning
LimitedExtended thinking = Pro+ only
Not availableThinking requires Plus+
LimitedThinking features paid-only
ModerateGood for structured tasks
Coding assistance
StrongNo agentic Claude Code (paid only)
GoodCodex agent = paid only
Good
ModerateNo GitHub Copilot integration
Multimodal and File Handling
Image input (vision)YesYesYesYes
File / document upload
YesPDFs, text, code files
LimitedStricter rate limits on free
LimitedComplex docs may hit limits
NoWeb-only chat; paid Copilot M365 supports upload
Image generation No
LimitedDALL-E, 2-3 images/day on free
YesUp to 100 images/day via Gemini app
YesImage Creator via Designer included with E3/E5
Web search / grounding
YesIncluded on free tier
YesLive web search on free
YesGrounded in Google Search
Yes (primary)Web-grounded by default via Bing
Productivity and Workflow Integration
Microsoft 365 integrationWord, Excel, Outlook, Teams NoneNone
NoneRequires paid Workspace Gemini license
No (paid add-on)In-app M365 Copilot requires $18-30/user/mo add-on
Projects / workspacesPersistent context
YesProjects available on free as of Feb 2026
LimitedShared projects = Business+; memory limited on free
LimitedNo persistent workspace on free
LimitedNo cross-session memory in chat
Memory / personalization
YesPersistent memory across sessions on free
LimitedMemory available but limited; no team memory
No
LimitedNo cross-session memory in bundled Chat
Security and Compliance (Critical for Enterprise)
Data used for training Yes (opt-out)Yes (opt-out)Yes (opt-out)
No Key AdvantagePrompts stay within tenant boundary per Microsoft's contractual commitment
Tenant data isolation NoNoNo
YesTied to your M365 tenant; enterprise compliance commitments apply
Admin / policy controls NoneNoneNone
PartialM365 admin can enable/disable Copilot Chat via tenant settings
Compliance certificationsSOC 2, HIPAA, GDPR Free tier: NoneFree tier: NoneFree tier: None
Inherited from M365SOC 2, ISO 27001, GDPR. HIPAA BAA for eligible E5 customers.
DLP / sensitivity labels NoNoNo
Partial (E5 only)Purview DLP can restrict data into paid Copilot. Basic chat has no DLP.
Cost Structure (For Your 300-400 User Org)
Free tier cost $0$0$0
Already paidBundled in existing E3/E5. No incremental cost.
Paid upgrade (per user/mo)
$20 Pro / $30 TeamTeam plan: 5-seat min, better for org use
$20 Plus / $30 BusinessBusiness plan for teams; includes admin controls
$20-30 Google One AI / Workspace Gemini
+$18-30/user/mo add-onTo unlock in-app M365 Copilot. At 300 users = $65K-108K/yr
Executive Summary by Platform
Claude Free
Enterprise Risk
High -- no org controls, data may train models
ChatGPT Free
Enterprise Risk
High -- most restrictive free tier for daily use
Gemini Free
Enterprise Risk
High -- no org controls; limit stability uncertain
Copilot Chat (E3/E5)
Enterprise Risk
Lowest of the four -- data stays in your tenant
* Sources: Anthropic support docs, OpenAI Help Center (Mar 2026), Google AI Studio docs, Microsoft Learn Copilot licensing docs. Data changes frequently -- verify limits before policy decisions. Copilot pricing: E3 ~$36/user/mo, E5 ~$57/user/mo; Copilot add-on $18/user/mo (annual). Prices increasing July 2026 per Microsoft announcement.

* "Free tier" for Claude/ChatGPT/Gemini = consumer public free accounts with no enterprise data protection, admin controls, or compliance commitments. Use of these platforms with client or confidential data warrants a formal acceptable use / BYOAI policy.