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Amount of data and amount of visualizations you need. Power BI more often than not has Excel files as a data input (and power BI is used to present & manipulate the data in an easier way).
Pretty much any time you want to share a report for others to see data without the need to input data. Power BI doesn't allow you to input data (at least without jumping into Power Apps) so it's best to display data. That being said it's leaps and bounds ahead of Excel for doing that. The ability for scheduled refreshes of data and the visualizations alone make Power BI the way to go. If you're just doing quick analysis or need others to input data, Excel is fine but you'll be ahead of the curve by being able to model and create reports on Power BI.
As others have said, any time you want to share or visualize, use PBI. Excel is great for data storage. PBI is great for visualizing.
Note that you SHOULD get your data moved into an RDBMS. But that’s not always possible. And if you have everything externalized to PBI it also isn’t a decision you have to make right away.
And data security. You can set up RLS in power bi
I wish my company didn’t get rid of power bi 😂