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

📢 Official Microsoft Message Center Announcement

Updated October 16, 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. Beginning in mid-November, usage-based billing will be included by default with eligible new Microsoft 365 Copilot Business purchases for tenants that have Microsoft 365 Business Premium. For CSP customers, usage-based billing will be included by default with eligible new Microsoft 365 Copilot Business purchases starting December 1, 2026. This phased approach makes it easier 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.

You have been identified as a customer who may be affected by this phased rollout.

What is changing

• With eligible new Microsoft 365 Copilot Business purchases: Beginning in mid-November, pay-as-you-go usage-based billing will be configured by default with eligible new Microsoft 365 Copilot Business purchases for tenants that have Microsoft 365 Business Premium. Tenants without Microsoft 365 Business Premium will follow at a later date. 
  • For CSP customers, beginning December 1 pay-as-you-go usage-based billing will be configured by default with eligible new Microsoft 365 Copilot Business purchases.
• If your organization does not already have the required pay-as-you-go Azure resources and/or spending policy, it 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 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

• Mid-November 2026: Usage-based billing default-on will begin for eligible new Microsoft 365 Copilot Business purchases made directly from Microsoft, including through Microsoft web and the Microsoft 365 admin center, for tenants that have Microsoft 365 Copilot Business Premium.
• Future rollout: Tenants that do not have Microsoft 365 Business Premium, including tenants that only have Microsoft 365 Business Standard and/or Basic with Copilot, or only Microsoft 365 Copilot Business.
• Starting December 1, 2026: The change applies to eligible new Microsoft 365 Copilot Business 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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