New Microsoft 365 Copilot Business licences come with pay-as-you-go billing on from 2 November

From 2 November, Copilot Business licences bought through a Microsoft partner will have usage-based billing switched on by default. Here is what that covers and where the spending limits live.

Microsoft has told its partners that from 2 November 2026, new Microsoft 365 Copilot Business licences bought through its Cloud Solution Provider program will have usage-based billing on by default. That includes Copilot Business on its own and in bundles. This is the route you use when you buy Microsoft 365 through a reseller or IT provider.

Usage-based billing is how Microsoft charges for some of its newer AI features. They are paid in Copilot Credits rather than covered by the licence fee. According to Microsoft, the services billed this way include Copilot Cowork, the apps people build with Cowork, and the Work IQ API, and more agents and services will be added over time. Microsoft says the change removes billing setup so customers can reach these features sooner, and that new licences will come with a preset monthly limit.

For a business, this means a new Copilot licence can create charges on top of the licence fee without anyone setting up billing first. That is fine if you plan to use Cowork, but it should be a decision rather than a surprise on an invoice.

Controls live in the Microsoft 365 admin center under Copilot, then Cost management. Admins can set spending limits for the whole organisation and for each user, choose which people can use the paid services, and get alerts as limits get close. One setting to check is 'Auto-apply new services', which is on by default and adds future Copilot services to your existing spending policies automatically. If you buy through a partner, ask them what the preset limit will be before 2 November.

If you are adding Copilot seats before the end of the year, ask about the billing setup along with the licence price.