Cowork in Frontier: New Value + Usage-based Billing [MC1393468]

Message ID: MC1393468

[What and Why]
Starting June 16, 2026, Microsoft 365 Copilot Cowork will move to general availability (GA) worldwide (Tier 1 languages), while Frontier remains the early access channel for new capabilities.  

This post is specific to managing the experience for Frontier users of Cowork.

Frontier-specific updates for June 16, 2026: This update introduces usage-based billing, enabling organizations to scale responsibly and align costs with actual usage, while maintaining enterprise-grade controls and governance. Frontier users will continue to receive early access innovations, including a new model (OpenAI GPT 5.5).

[Rollout Schedule]

• June 16, 2026 – GA begins; usage-based billing becomes available
• June 16–June 30, 2026 – Grace period for existing Cowork users in Frontier
• July 1, 2026 – Usage-based billing required for continued access for Cowork users in Frontier

[Impact on Your Organization]

Who is affected:

• Admins managing Copilot and billing configurations
• Existing Frontier Cowork users
• New Frontier users accessing Cowork after June 16

Platforms/Services:

• Microsoft 365 Copilot
• Cowork (Frontier and GA experiences)
• Microsoft 365 Admin Center (billing and contriols)

What will happen:

• Grace period (June 16–June 30):
• Existing Cowork users (installed before June 16):
  • Continue to use Cowork through June 30 (no billing setup required)
  • Receive end-user in-app notifications (June 23–June 30) notifying the expiration date
• Admins:
  • Can onboard additional Frontier users to Cowork at no cost during the grace period (tenant must already have at least one active user)
  • Notifications in the M365 Admin Center to configure billing

• Experience changes starting June 16, 2026:
  • Cowork experience shifts from an “agent” model to a toggle-based entry point
  • Frontier continues to provide early access to new capabilities, including updated model access
• After July 1, 2026:
  • If usage-based billing is enabled:
    • Users continue without interruption
  • If usage-based billing is not enabled:
    • End users will lose access starting 7/1
    • Existing chat history and artifacts are retained and accessible when access is restored

[Action Required / Recommendations]

• Configure usage-based billing: Set Up and Manage Pay-as-you-go Billing
• Determine visibility strategy:
  • Enable usage-based billing in the Microsoft 365 Admin Center by 6/30 

Recommended:

• Enable spending policies early to establish visibility on credit consumption and ensure a seamless transition
• No charges will apply in June – no matter when you set up your spending policies, billing will only begin from July 1
• Review cost management and monitoring tools:
  • Usage-based billing overview
• Plan for your Spending Policy: To do this, we have provided you with two tools below. The current usage dashboard will help you identify current usage patterns and specific user behavior. The estimator will allow you to model your credit consumption going forward.
  • Cowork Usage Dashboard
  • Customer Cowork Cost Estimator

Additional resources

• Cowork GA blog
• Cowork documentation
• Copilot Credit Licensing guide
• Usage-based Billing and Cost Management for Copilot Credits | MS Learn
• Managing AI experiences enabled by usage-based billing | MS Learn
• Discovery setting for AI experiences enabled by usage-based billing | MS Learn

[Compliance considerations]

Compliance area	Explanation
Does the change alter how existing customer data is processed, stored, or accessed?	Cowork continues to process organizational data within Microsoft 365 using updated models and service capabilities, which may affect how data is accessed and analyzed within Copilot experiences.
Does the change introduce or significantly modify AI/ML or agent capabilities that interact with customer data?	This update introduces expanded AI capabilities, including access to an updated model (OpenAI GPT 5.5), which interacts with organizational data within Copilot experiences.
Does the change provide end users any new way of interacting with generative AI?	The experience changes from an agent-based interaction model to a toggle-based entry point, modifying how users engage with generative AI in Cowork.
Does the change include an admin control and can it be controlled through Entra ID group membership?	Admins can control access via usage-based billing configuration and a discoverability toggle. Integration with Entra ID group-based targeting may be used depending on tenant configuration.
Does the change allow a user to enable and disable the feature themselves?	Users may request access when discoverability is enabled, introducing a user-driven access flow in environments where billing is not configured.

Source: Microsoft

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