How Copilot Notebooks works: AI that reads only what you give it

Microsoft has a feature in Microsoft 365 called Copilot Notebooks. It is a kind of AI workspace where you collect documents and other sources in one place and then ask Copilot questions about them.

How it works

You create a notebook, add files and references from Microsoft 365, and then ask questions. According to Microsoft's own help page, the answers are based only on the content you have added yourself. Copilot does not have access to all of OneDrive, email, Teams chats or the web.

The supported references are Word, PowerPoint, Excel and PDF files, Copilot pages, Loop files, OneNote pages and web addresses. Copilot can summarize and analyze the documents, write drafts based on the material and answer questions about the content. The tool can be used via the Copilot app and OneNote.

A description from the IT consultancy eGroup mentions a three-column view: references, chat and pages. There is also automatic summarization on an overview page and quick creation of drafts, audio overviews and flashcards (small study cards).

Licensing and limitations

According to Microsoft, the tool is available to users with a Copilot Chat license and to subscribers to Microsoft 365 Personal, Family, Premium and Pro. The account must also have a SharePoint or OneDrive license in order to create notebooks.

There are several known limitations. Copilot cannot create images or data visualizations, and a maximum of 300 files can be used as a basis. If you delete a notebook, it is gone for good, since a recycle bin is still under development.

The consultant's assessment

eGroup compares the tool with Google's NotebookLM. According to the consultancy, Copilot Notebooks runs within Microsoft 365's security framework with enforced permissions and policies, while NotebookLM runs outside companies' governance structures. eGroup's assessment is that this is a fundamental difference for regulated industries.

eGroup also highlights that the notebooks have live references to SharePoint documents, which are updated automatically. According to the consultancy, this prevents multiple versions of the same truth from emerging.

eGroup believes the tool suits longer-term collaboration such as strategic planning, client deliverables and regulatory analysis, but not one-off questions. The consultancy recommends it for companies that already use Microsoft 365 Copilot. If you are evaluating solutions from scratch, you should follow upcoming releases, because the experience is less polished than NotebookLM's, which eGroup describes as a strong personal research tool.

The comparison is based on one consultant's assessment and not on tests. Licensing terms may also have changed, so it is worth checking what your own account gives you access to.