MC1476200: Microsoft 365 Copilot Business Adds Default Usage-Based Billing for New Tenant Purchases

📢 Official Microsoft Message Center Announcement

Updated November 9, 2026: We have updated the rollout scope and timeline. Thank you for your patience. 

The new Microsoft 365 Copilot Business combines everyday AI through a user subscription license with Advanced AI through usage-based billing. Beginning in mid-November, 2026, usage-based billing will be included by default with eligible new Microsoft 365 Copilot Business purchases made by new tenants. This phased approach makes it easier for new customers to access eligible usage-based AI experiences, including Copilot Cowork and other long-running, autonomous agentic capabilities, while reducing billing complexity and preserving flexibility to expand usage over time based on business needs. 

This change will not apply to your existing Microsoft 365 tenant as part of the November rollout. We will share additional information before making usage-based billing easier to enable for existing tenants. If you’d like to get started sooner, you can enable usage-based billing at any time through Cost Management in the Microsoft 365 admin center. 

What is changing 

• Eligible purchases made by new tenants: Beginning in mid-November, pay-as-you-go usage-based billing will be configured by default with eligible new Microsoft 365 Copilot Business and Microsoft 365 Business with Copilot purchases made by new tenants. 
• If the new tenant does not already have the required pay-as-you-go Azure resource and spending policy, they will be created as part of the eligible purchase and product setup. 
• The resulting spending policy will have a spending limit of 4,000 Copilot credits per user per month, with charges based on actual usage. 
• Charges apply only when these experiences are used, subject to the usage controls and spending limits established by the administrator. 
• We will begin rolling out this change to eligible customers in supported markets. The change will not initially be available in Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland, or Spain. We plan to include these markets in the next phase of the rollout in early 2027, with additional details and timing to be shared closer to launch. 

What is not changing 

• Your existing Microsoft 365 Copilot Business subscription benefits and payment terms do not change.
• Usage-based billing will not be configured by default for your existing tenant as part of the November rollout. 
• If your organization already has a spending policy configured, the existing spending policy remains in place. 

When this will happen 

• Mid-November 2026: Usage-based billing default-on will begin for eligible new Microsoft 365 Copilot Business purchases made by new tenants directly from Microsoft, including through Microsoft web. 
• Existing tenants: We plan to make usage-based billing easier to enable for existing tenants across all markets beginning in early 2027. We’ll share more details, including specific timing and what to expect, closer to launch. 
• Optional action: Existing tenants can turn on usage-based billing at any time through Cost Management in the Microsoft 365 admin center. 
• Starting in early 2027: The change applies to eligible new Microsoft 365 Copilot Business purchases made through Cloud Solution Provider (CSP) channels, with specific timing to be shared closer to launch. 

How usage-based billing works 

• When usage-based billing is configured, the required pay-as-you-go Azure resource and spending policy support access to eligible usage-based experiences. 
• If you want to turn on usage-based billing for your existing tenant, you can create and manage a spending policy through 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. 

What you can do to prepare 

• 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. 
• If you choose to turn on usage-based billing ahead of this update, you can create or adjust usage controls and spending policies in Cost Management 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: learn.microsoft.com/microsoft-365/copilot/usage-based-billing-overview-copilot-credits 
• Cloud Based Billing: What is a cloud subscription? – Microsoft Cost Management | Microsoft Learn

Source: Microsoft Message Center • Analysed by MWPro

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