MC1476200: Microsoft 365 Copilot Business Adds Default Usage-Based Billing for Easier AI Access

📢 Official Microsoft Message Center Announcement

Updated October 1, 2026: We have updated the content and timeline. Thank you for your patience. 

The new Microsoft 365 Copilot Business combines everyday AI via user subscription license with Advanced AI via usage-based billing. We are now 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. 
• For existing Microsoft 365 Copilot customers, purchasing a new Copilot Business seat will deploy usage-based billing across all Microsoft 365 Copilot subscriptions in your tenant. 
• 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 your 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, Netherlands, Poland, Spain. We will provide additional information about availability in these markets when available. 

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.

When this will happen

• 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 December 1, 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.

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.
• 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: 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

Source: Microsoft Message Center • Analysed by MWPro

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