We’re improving how administrators manage Microsoft Copilot Chat policies by moving policy administration in the Microsoft 365 admin center from “Copilot > Billing & Usage” to “Copilot > Cost management”. This change unifies Copilot Chat usage and cost controls under a single pane with Cowork and Work IQ APIs.
Microsoft 365 Message Center ID: MC1463507
Last Modified: August 29, 2026
Category: Message Center
Tags: New feature, Feature update, Admin impact
Status: Launched
Products & Platforms: Microsoft Copilot (Microsoft 365), Microsoft 365 Copilot Chat
Rollout schedule
We will begin rolling out in late September 2026 and expect to complete by mid-October 2026.
Impact on your organization
As part of this update, existing Copilot Chat Declarative Agen policies configured through “Copilot > Billing & Usage” will be automatically migrated to “Copilot > Cost Management” in the Microsoft 365 admin center. These policies govern how users without an assigned Microsoft 365 Copilot user license access declarative agents–such as agents built through Agent Builder. No changes will be made to your existing policy configurations during the migration.
After the rollout:
- Administrators will manage Copilot Chat policies through the Cost Management experience.
- Existing policies will continue to function as configured. Administrators have the flexibility
- No end-user impact is expected.
- Generally, no administrative action is required to preserve current policy settings. If there are exceptions to this admins will be able to see what actions they need to take to complete the migration within the admin center.
Once migration is complete, references and entry points for policy management will direct administrators to Cost Management rather than the classic billing experience.
The following capabilities will not be available in the initial Cost Management experience:
- Multiple alert thresholds
- Limits and budgets in dollars
Important: Copilot Chat billing policies are currently resolved at a detailed Azure Region level. The new Cost Management experience operates at a poader Geo level. As a result, some existing billing policies may be migrated from a specific Azure Region to an equivalent Geo-level scope. Policy functionality will continue to be supported, but administrators should review migrated policies if they currently rely on Region-specific billing configurations
Action required / Recommendations
No action is required before rollout.
We recommend that administrators:
- Familiarize themselves with the Cost Management experience.
- Update any internal documentation, training materials, or administrative runbooks that reference the classic billing experience.
- Notify relevant administrators of the upcoming management experience change.
Additional documentation will be available prior to rollout.
Compliance considerations
Customer data is not expected to be moved or processed differently as part of this change. However, billing policies currently scoped to specific Azure Regions may be mapped to broader Geo-level scopes during migration, changing how administrators configure and manage billing controls.
Administrative controls are moving to a different management surface. Depending on final implementation, reporting and policy visibility may be presented through Cost Management experiences rather than classic billing.