Summary
Microsoft 365 Copilot Business will include default usage-based billing for eligible AI experiences starting October 19, 2026, simplifying access and billing. Charges apply only when used, with spending policies managed by administrators. Existing subscriptions and policies remain unchanged. Adjust controls via the Microsoft 365 admin center.
Message ID: MC1476200
Services: Microsoft Copilot (Microsoft 365), Microsoft 365 Copilot Chat
Category: Plan for change
Tags: Major change, New feature, User impact, Admin impact
Rollout: October 2026, November 2026
Microsoft Message
We are making it easier to access eligible usage-based AI experiences, including Copilot Cowork and other long-running, autonomous agentic capabilities, when you purchase Microsoft 365 Copilot Business. Usage-based billing will be included by default with eligible new Microsoft 365 Copilot Business purchases, reducing billing complexity while giving your organization flexibility to expand usage over time based on business needs.
You have been identified as a customer who may be affected by this change.
What is changing
- With eligible new Microsoft 365 Copilot Business purchases, pay-as-you-go usage-based billing will be configured by default to provide access to eligible usage-based experiences with less billing setup. Microsoft will automatically create the required Azure resources and apply a spending policy that enables usage-based billing including default spending limits and future eligible services.
- Charges apply only when these experiences are used, subject to the usage controls and spending limits established by your administrator.
What is not changing
- Your existing Microsoft 365 Copilot Business subscription benefits and payment terms do not change.
- Capabilities already included with your license remain included; this change adds a spending policy for eligible usage-based experiences.
- If your organization already has a spending policy configured, the existing spending policy remains in place.
Rollout schedule
- Starting October 19, 2026: The change applies to eligible new purchases made directly from Microsoft, including through Microsoft web and the Microsoft 365 admin center.
- Starting November 2, 2026: The change applies to eligible new purchases made through Cloud Solution Provider (CSP) channels.
How usage-based billing works
- If your organization does not already have the required pay-as-you-go Azure resource and/or spending policy, it will be created as part of the eligible purchase and product setup.
- Administrators can review and manage usage controls and spending policy in Cost Management in the Microsoft 365 admin center.
- Your organization can adjust its spending policies and controls to align with its needs. Disabling usage-based billing prevents access to experiences that require it.
Action required / Recommendations
- Review which eligible usage-based experiences—including Copilot Cowork and other long-running, autonomous agentic capabilities—may support your organization’s needs.
- Review your organization’s usage-based billing, governance, and cost-management requirements.
- On or after the applicable date, confirm or adjust usage controls and spending policies in the Microsoft 365 admin center.
Learn more
- Cost Management in the Microsoft 365 admin center: https://admin.cloud.microsoft/#/copilot/costmanagement/overview
- Usage-based billing and cost management for Copilot Credits: https://learn.microsoft.com/en-us/microsoft-365/copilot/usage-based-billing-overview-copilot-credits
- Cloud Based Billing: What is a cloud subscription? – Microsoft Cost Management | Microsoft Learn