Outlier vs Microsoft Copilot: local Mac AI vs Microsoft's cloud

Fair warning: I built Outlier, so I'm an interested party. I've tried to write the Copilot half the way I'd want a competitor to write about me: every number below comes from Microsoft's own pages, linked at the bottom, and anything I couldn't confirm I left out rather than guessed.

What Microsoft Copilot actually is

Copilot is two different products sharing one name.

The first is the consumer app: free on the web, Windows, macOS, iOS and Android; the Mac App Store lists it as "Free · In-App Purchases," with upgrades to Microsoft 365 Personal and Premium offered inside. It's a capable chat assistant, but Microsoft is blunt about the ceiling: the free version can't access your documents or email and doesn't work inside Word, Excel or Outlook. Only subscribers get "deep integration with documents, emails, spreadsheets, calendars and more." The Mac build lags a little too. Copilot Pages and Deep Research aren't available in it.

The second is Microsoft 365 Copilot, the paid per-seat add-on for organisations, the thing that makes Copilot different from every other chatbot. Before answering, it grounds your prompt against Microsoft Graph (mail, chats, files, calendar, meetings), scoped to what your Entra ID account can already see, then "sends the grounded prompt to the LLM" in Microsoft's datacentres. As of 2026-10-19 that model can be one of OpenAI's, supplied through Microsoft rather than chosen by you: Microsoft's own model documentation names no specific version, so neither will I. Anthropic's Claude models are available too, with Anthropic onboarded as a Microsoft subprocessor.

Worth knowing if you're budgeting: Copilot Pro, the standalone consumer plan, no longer appears on Microsoft's plans-for-individuals page; the advanced Copilot features now sit in Microsoft 365 Premium and Pro.

What Outlier is

Outlier is a native Mac app for Apple Silicon (M1 or later, macOS 15+). You download it, it downloads a model, and everything after that runs on your machine: no account, no caps, no prompt uploaded, works with Wi-Fi off.

Six tiers, from Nano (4B, 2.37 GB, needs 6 GB RAM) through Core 27B to a 397B-a17b Plus tier that streams experts from SSD. On an M1 Ultra Nano runs about 71.7 tok/s and Core 27B about 20.7. Nano and Lite are free forever, no account. Pro is a one-time purchase for all six tiers, the Outlier Lifetime Licence at $49. Core 27B measured 46% on a blind slice of SWE-bench Verified, and we published a 54-prompt side-by-side with Claude Opus so you can compare the answers yourself. Cloud models like Claude and ChatGPT are still faster and stronger on the hardest work.

Three things that matter for the comparison below, because the page is about privacy and I'd rather state them than let you find them later. Outlier does have web search: a 🌐 toggle in the composer that queries DuckDuckGo, Mojeek and Wikipedia, plus a Deep Research mode that adds Crossref, OpenAlex, StackExchange and Hacker News and answers with inline citations. When it's on, the query leaves your Mac (not your chat history, your files or the model's context), and in agent mode the same switch covers the web pages the agent opens and the web-connected tools it uses; the app's Privacy Ledger lists every destination search can reach. Second, Vision 3.8 27B accepts image input, so screenshots, diagrams and reading text out of a picture all work; scanned PDFs still need an OCR pass the app does not ship yet. Third, there's dictation into the composer and a read-aloud button on replies. Web research, Deep Research, vision and dictation are all Pro features; the free tiers are Nano and Lite text chat.

What Copilot actually costs per year

Consumer pricing as of 2026-10-19: Microsoft 365 Personal is $9.99/month or $99.99/year for one person. Family is $12.99/month or $129.99/year for up to six. Premium is $19.99/month or $199.99/year for up to six, and includes Office with Copilot built in, 2 TB of shared storage, and agentic AI for advanced research and analytics (Researcher and Analyst).

Two catches. Personal only gets "higher usage than free" on Copilot chat, visual assistance, audio and image creation, so you're still metered. And on Family and Premium the AI features go to the subscription owner only; the other five people don't get them.

On the work side, Microsoft 365 Copilot is $30.00 per user per month paid yearly, or $31.50 on monthly billing with an annual commitment. That's $360 a seat a year, and it's an add-on, not a replacement: "a separate license for a qualifying Microsoft 365 plan is required": E3/E5, Business Standard/Premium, Office 365 E1/E3/E5 or similar. Copilot Business, the small-business SKU, lists at $21.00/user/month, promotionally $18.00 on annual commitment between 1 July and 31 December 2026, first year only; $25.20 on monthly commitment.

One free path many people already have: Copilot Chat, the web-grounded version, is included with an eligible Microsoft 365 commercial subscription. Work-grounded chat, anything reading your tenant's data, needs the paid licence.

Where Microsoft Copilot genuinely wins

Plenty, and I'd be lying if I softened this.

• It reads your actual work. Graph grounding across Exchange mail, Teams chats and meetings, SharePoint, OneDrive and your calendar is something a local Mac app can't replicate. Outlier can't see any of it.
• Frontier models, no hardware bill. Frontier OpenAI models and Claude run in Microsoft's datacentres, so an old laptop gets the same answers as a Mac Studio. Outlier's quality is bounded by your RAM, Plus needs 64 GB.
• Web grounding at Bing scale, and grounded in your tenant too. Copilot Chat answers off Microsoft's own search index: always on, no toggle, and in Microsoft 365 Copilot the same answer can braid a live web result together with a document from your SharePoint. Outlier does have web search (a 🌐 toggle over DuckDuckGo, Mojeek and Wikipedia, plus a Deep Research mode with citations) but it's public search APIs rather than a first-party index, it's a Pro feature rather than something the free tiers get, and nothing it retrieves knows anything about your organisation.
• Everywhere you are. Windows, Mac, iOS, Android and browser, conversations following you between them. Outlier is Apple Silicon Mac only: no Windows, no Linux, no mobile app, no sync.
• Spoken conversation, and images out. Copilot holds a real back-and-forth voice conversation, and Microsoft's hosted model list includes Black Forest Labs' FLUX image model. Outlier takes text and images in (Vision 3.8 27B, on the Pro tier) and it has dictation plus a read-aloud button, but that's a microphone and a speaker bolted to a text app, not a conversation. It generates no images at all.
• Enterprise governance. Purview eDiscovery, retention and DLP over Copilot interactions, Conditional Access, MFA, per-group control over which AI providers users reach, plus GDPR, ISO 27001, HIPAA and ISO 42001 coverage and EU Data Boundary status. I'm one person in Grand Rapids; I can't offer that.
• Legal indemnity. The Copilot Copyright Commitment means Microsoft defends a commercial customer sued over Copilot output and pays resulting judgments, provided the guardrails were used. Outlier gives you no such backstop.

If your work lives in Microsoft 365 and the answer depends on last Tuesday's Teams thread, Copilot is the right tool and nothing local competes.

What happens to your data

Commercially, Microsoft's written position is strong: "Prompts, responses, and data accessed through Microsoft Graph aren't used to train foundation LLMs," stored interaction data is encrypted and also excluded from training, and Copilot has opted out of Azure OpenAI abuse monitoring, which includes human review of content. That's a better contractual floor than most cloud vendors put in writing.

The consumer side is weaker, and it's opt-out. Microsoft's privacy statement says it may use your data "to develop, train, and fine-tune our AI models, including large language models," and that "in some markets, this data can help train our AI models in Microsoft Copilot unless you opt out." The switches sit under Settings → Privacy. Opting out excludes your future conversations from training, but it doesn't exclude them from use for "advertising, digital safety, security, and compliance purposes." History is kept 18 months by default. Those consumer controls don't apply to Microsoft 365 Copilot on a work or school account, which falls under Enterprise Data Protection instead.

Your queries may also not stay in your country. Microsoft says LLM calls route to nearby datacentres "but also can call into other regions where capacity is available during high utilization periods," and customers outside the EU "may have their queries processed in the US, EU, or other regions." Anthropic's models in Copilot are excluded from the EU Data Boundary, so EU/EFTA and UK tenants have them off by default.

Outlier's half is shorter, and it should be held to the same standard. The model runs on your Mac, so for inference there is no prompt to route, no region and no retention period. There's nothing on the wire to have a policy about. There are two ways out, and you open both yourself. The first is the 🌐 web switch. Turn it on and the query (not your chat history) goes to DuckDuckGo, Mojeek and Wikipedia, and in Deep Research also to Crossref, OpenAlex, StackExchange and Hacker News; in agent mode the same switch lets the agent open web pages and use the web-connected tools you added. The app doesn't hide that: the badge in the header changes while web is on, and clicking it opens a Privacy Ledger that lists the destinations search can reach, what it sends and when. The second is a command the agent wants to run: with web off, one that downloads or installs from the internet asks you first, every time, and if you say yes it gets the internet and nothing else on your Mac. So: one switch, one question per download, disclosed in the product, not "nothing ever leaves", which would be the same kind of overclaim I'm criticising above.

Copilot's three SKUs against Outlier's two

Microsoft shop or not: how to decide

Pick Microsoft Copilot if your organisation runs on Microsoft 365 and you want answers grounded in your real mail, files and meetings; if you need compliance certifications, eDiscovery and admin control; if you need Windows, Android or a phone in your pocket; if you want voice conversations or generated images; or if your hardware couldn't load a 27B model.

Pick Outlier if the material genuinely can't leave the machine (client files, source code under NDA, medical or legal drafts) and a contractual promise isn't the same as data never moving. Or if you work offline, or you're tired of metering, against $360/seat/year plus a base licence changes the maths. It's Apple Silicon Mac only, there's no mobile app and no sync, and it writes text back even though it can read images, and I'd rather you know that before you download than after.

One deployment note before you buy seats. Copilot surfaces whatever a user technically has permission to see, which in most tenants is more than they were meant to find. Microsoft's stopgap, Restricted SharePoint Search, is capped at 100 sites, is explicitly "not a security boundary," and is being retired: new enablement is blocked from 31 July 2026. Fix permissions first. Microsoft also notes responses "aren't guaranteed to be 100% factual."

Plenty of people run both, which is the sane answer for most Microsoft shops: Copilot for anything needing tenant data or Microsoft's own web index, Outlier for the confidential work and the plane rides.