Microsoft is shifting from fixed usage limits to a capacity-based model for certain Copilot Chat features, such as image generation and file uploads. This change applies to all users in your organization, but primarily impacts those without a Microsoft 365 Copilot license.
Timeline
The new capacity model will be enabled by the end of August 2025.
How does this affect your users?
Microsoft already began tightening access back in April, when the AI image generation limit was changed for users without a Microsoft 365 Copilot license.
Starting in August, Microsoft will begin throttling features like image generation and file uploads in Microsoft 365 Copilot Chat, based on internal service capacity. Access to these capabilities may fluctuate throughout the day, depending on overall system load. The maximum upload size remains 512 MB per file for all users.
- Users with a Microsoft 365 Copilot license receive priority access to features in Microsoft 365 Copilot Chat, ensuring a more consistent experience even during high-demand periods.
- Users without a Microsoft 365 Copilot license receive standard access, which may be limited based on available service capacity. When limits are reached, in-product notifications will inform users that service capacity is currently not available. Any in-progress tasks will continue uninterrupted.
- If access is restricted due to capacity, users can consider switching to alternative AI platforms, such as ChatGPT, as a productive workaround.
This capacity throttling is the next move in Microsoft’s marketing strategy to sell more Microsoft 365 Copilot licenses.
