Comparing AI tools: a business decision

Tags AI

Audience: Chief Business Officers (CBOs), Department Chairs, Deans, Directors, Business Managers

Responsible Group: IT Training and Outreach

Overview

Business leaders at the University of Arkansas are responsible for ensuring staff and faculty have the right tools to work effectively, while also protecting institutional data. This article explains why investing in licensed AI tools (Copilot for Microsoft 365 and OpenAI ChatGPT Edu) benefits your unit and safeguards the university against compliance risks.

Why It Matters

  • Productivity Gains – Licensed AI tools reduce time spent on reports, data analysis, presentations, curriculum planning, and grant writing. Studies show staff save hours each week when AI is embedded in their daily tools.
  • Data Protection – Free or consumer-level AI tools do not meet FERPA or institutional compliance standards. Licensed tools ensure university data is not shared or used for model training.
  • Risk Reduction – Purchasing secure AI tools prevents shadow IT (unapproved personal accounts), which increases legal, financial, and reputational risk.
  • Institutional Competitiveness – AI literacy is a Forward 150 priority. Investing in compliant AI helps your staff stay ahead in research, instruction, and administration.
Tip: Think of AI licenses as both a productivity tool and an insurance policy. You enable your team to work smarter while protecting sensitive university data.

Key Benefits of Licensed AI Tools

Copilot for Microsoft 365

  • Integrated in Word, Excel, PowerPoint, Outlook, and Teams.
  • Leverages Microsoft Graph to securely access email, OneDrive, SharePoint, and calendar data.
  • Enterprise compliance posture – data stays in your M365 tenant.
  • Cost: $240 per user per year.
Why does Copilot for Microsoft 365 matter?

Microsoft 365 Copilot combines AI productivity with enterprise-grade privacy and compliance, making it a secure choice for higher education. It operates entirely within the Microsoft 365 boundary, inheriting existing user permissions through Microsoft Graph so it never exposes data users can’t already access. Prompts, files, and responses are not used to train large language models, and all activity is encrypted and logged for auditing. Copilot meets standards such as GDPR, ISO/IEC 27018, and the Microsoft Data Protection Addendum, with EU data residency controls where required. Features like Enterprise Data Protection (green shield icon) and administrator settings—including the ability to disable web searches—ensure sensitive institutional data stays protected. Licensing Copilot is both a productivity investment and a risk-management strategy: it enables staff to work more efficiently inside familiar tools like Word, Excel, Outlook, and Teams while safeguarding FERPA-protected and institutional data from the risks associated with consumer AI. Source:  Data, Privacy, and Security for Microsoft 365 Copilot

OpenAI ChatGPT Edu

  • FERPA-aligned platform for teaching, research, and administrative use.
  • Enterprise controls: SSO, admin dashboards, role-based policies.
  • Supports curriculum design, grant writing, data analysis, coding help, and policy drafting.
  • Cost: $120 per user per year (Standard) or $240 per user per year (Power User with Deep Research).
What security and privacy controls does ChatGPT Edu offer?

You own and control your business data in ChatGPT Enterprise. We do not train on your business data or conversations, and our models don’t learn from your usage. ChatGPT Enterprise is also SOC2 compliant and all conversations are encrypted in transit and at rest. Our new admin console lets you manage team members easily and offers domain verification, SSO, and usage insights, allowing for large-scale deployment into enterprise. See our privacy page and our Trust Portal for more details on how we treat your enterprise data. - Source: OpenAI

Return on Investment (ROI)

AI License ROI Snapshot
Factor Without License With License
Staff Efficiency Manual reporting, slower analysis, more admin burden Hours saved each week via drafting, analysis, automation
Data Security Risk of staff using personal/consumer AI tools Institutional compliance and FERPA alignment
Financial Risk Exposure to data breaches or policy violations Risk mitigation through licensed enterprise tools

Access

Licenses must be purchased through university procurement. Faculty and staff will access these tools using their @uark.edu credentials. Contact IT Procurement for guidance on purchasing for your department or unit.

Training

 AI Literacy & Data Responsibility Community of Practice

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Copilot chat comes with the Microsoft educational licenses that all @uark.edu account holders have. Learn about it, how to access, and training to get started.
About the AI tool Copilot for Microsoft 365 that is built directly into apps like Word, Excel, Outlook, and Teams and uses your work data for context, analysis, and answering prompts.
About the AI tool OpenAI ChatGPT Edu license that is available for departments, faculty, staff to purchase from IT Services.
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Comparing Copilot chat, Copilot for Microsoft 365, and OpenAI ChatGPT Edu licenses: uses and cost.

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