Windows Terminal users can now use Terminal Chat with the GitHub Copilot Free plan. The update allows free users to access AI-driven command-line assistance, a feature previously available only to paid subscribers. However, free-tier users are limited to 50 chat messages per month, whereas Copilot Pro and Business subscribers have unrestricted usage.
Terminal Chat enables users to request command syntax explanations, troubleshoot errors, and convert commands between different shell environments. Unlike autocomplete tools, the AI assistant provides contextual responses tailored to the terminal session but does not execute commands automatically—users must manually copy and paste suggestions.
Windows Terminal Gains More AI Features
Microsoft first introduced Copilot support in Windows Terminal in October 2024, initially restricting it to paid users. This latest expansion now allows free users limited access to AI-powered assistance.
To enable Terminal Chat, users must log in with their GitHub credentials and activate Copilot within Windows Terminal’s settings. Currently, the feature is only available in Windows Terminal Canary, Microsoft’s testing version where new features are evaluated before public rollout.
GitHub Copilot’s Role in Microsoft’s AI Expansion
GitHub Copilot has evolved beyond simple code autocomplete, becoming an AI-powered development assistant integrated across Microsoft’s tools. In December 2024, GitHub introduced AI-powered code reviews, enabling automated pull request feedback. The same month, Code Referencing was added to Visual Studio, providing transparency when AI-generated suggestions match public repositories.
In February 2025, Microsoft launched Next Edit Suggestions in Visual Studio Code 1.97, helping developers predict upcoming code modifications. GitHub Copilot was recently also expanded to Apple’s Xcode, making AI-powered coding assistance available to Swift and Objective-C developers.
With integrations spanning IDEs, command-line interfaces, and debugging tools, Microsoft is positioning Copilot as a core element of AI-assisted software development. Its presence in Windows Terminal aligns with this strategy, embedding AI support into broader development workflows.
Microsoft Faces Competition from Google’s AI Coding Assistant
Microsoft’s expansion of Copilot Free’s capabilities comes amid intensifying competition in AI-driven development tools. In February 2025, Google introduced Gemini Code Assist Free, a direct competitor that offers a significantly more generous free-tier plan.
While Copilot Free limits users to 2,000 code completions and 50 AI chat messages per month, Google’s AI assistant provides up to 180,000 completions with fewer restrictions.
Unlike GitHub Copilot Free, which is primarily integrated within Microsoft’s ecosystem, Gemini Code Assist Free supports multiple development environments, including JetBrains, Visual Studio Code, and GitHub.
This flexibility gives Google’s tool an advantage among developers who work outside of Microsoft’s platforms. By introducing AI chat to Windows Terminal, Microsoft appears to be reinforcing Copilot’s value beyond just code editing, positioning it as an assistant for broader development workflows.
However, the strict message cap for free-tier users suggests that the company remains focused on driving paid subscriptions rather than matching Google’s free-tier offering.
Legal and Security Concerns with AI-Generated Code
While AI-powered coding tools are advancing rapidly, they also bring legal and security challenges. Microsoft, GitHub, and OpenAI have been facing legal scrutiny since 2022 over allegations that GitHub Copilot was trained on publicly available code without proper attribution.
The lawsuit argues that AI-generated code suggestions could incorporate copyrighted content, raising concerns for developers who rely on these tools.
To address these concerns, Microsoft introduced Code Referencing, which flags AI-generated suggestions that match existing open-source repositories. This feature aims to improve transparency and reduce the risk of unintentionally incorporating copyrighted code.
However, legal questions surrounding AI-generated software remain unresolved, particularly as AI tools become more advanced.
Security is another major challenge. AI-generated code can introduce vulnerabilities, especially when developers rely on automated suggestions without manual review. While Copilot includes security enhancements, AI assistants are not infallible.
To mitigate risks, Microsoft has introduced enterprise-level policies that allow organizations to configure Copilot usage via Group Policy, ensuring that AI-generated code aligns with company security policies.
AI development assistants are no longer just autocomplete tools—they are evolving into broader AI-driven programming companions that assist with debugging, command-line workflows, and even code reviews.
Microsoft’s continued investment in Copilot makes clear that it sees AI as a fundamental part of the developer experience. However, with competitors like Google offering more generous free-tier models, Microsoft may need to reconsider its approach if it wants to maintain Copilot’s dominance in the AI-assisted coding market.
