Microsoft introduced the new Copilot with Home, Code, and Autopilot. Alongside these updates, Microsoft is also changing how it prices Copilot Premium as Copilot takes on longer, more complex work. Do not confuse this Autopilot with Autopilot in Intune. It’s Copilot Autopilot. ⚠️
Over the next few months, Microsoft will introduce per-user pricing for daily tasks and usage-based pricing for advanced AI tasks.
1) Per-user pricing with Microsoft 365 Copilot
Everyday Copilot Premium use remains included in the Microsoft 365 Copilot license (USL), billed per user per month. This includes choosing a model and using the Auto option, which picks the best-suited model and level of reasoning for each request by weighing accuracy, speed, and cost.
2) Advanced AI features with usage-based billing
Advanced AI features (such as Cowork, Code, Autopilot), and more capable models (such as frontier models like Fable and Astra), will be charged based on actual use through Copilot Credits rather than being included in the regular Copilot Premium user license.
Advanced AI can include agents that run for hours, unsupervised workflows, and business processes rebuilt with agents doing much of the work, such as a multi-step financial model running all afternoon.
When users need the best possible quality or the best model for a task, that work runs on usage-based billing (UBB) with Copilot Credits. Usage-based billing builds on the Microsoft 365 Copilot license, which is required to access these capabilities. Users need both.
3) Usage limits with Copilot Premium
Additionally, users may encounter a usage limit on their Microsoft 365 Copilot license, at which point Copilot offers the option to continue with Copilot Credits. One potential example is the Interpreter agent in Teams, which is currently capped at 20 hours per month per user account.
4) Copilot in SharePoint with usage-based billing
Some advanced capabilities in Copilot in SharePoint will also work with usage-based billing, such as image generation and editing directly in document libraries and sites, AI-generated site analytics reports, and near real-time metadata autofill columns.
Read more at Understanding the user subscription license (USL) and usage-based billing (UBB) for more information.
Release plans for the updates:
- Advanced AI features will be visible in Copilot to all users. However, they only work for users whose organization has enabled credit-based use. For everyone else, the options appear in Copilot but cannot be used, and no credits are consumed. Credit-based use of advanced AI features should begin rolling out in Copilot between October and December 2026. Read more at Evolution of the Copilot pricing model.
- In Copilot Cowork, users can see how many credits they have used, how many remain, and their credit history. Banners notify them when they approach their limit. The credit overview in Copilot Cowork should be GA in September 2026. Read more at Usage-Based Billing and Cost Management for Copilot Credits.
- Copilot in SharePoint with usage-based billing starts on 30 September 2026, when Copilot in SharePoint reaches general availability. Read more at SharePoint AI innovations hit GA, powering new Copilot app and agents.
