The news
Microsoft told its partners in October 2026 that two changes to Microsoft 365 Copilot take effect on 1 December 2026. From that date, businesses can buy Microsoft 365 Copilot and Microsoft 365 Copilot Business without a qualifying Microsoft 365 plan. The new offers cost the same as the current ones, which have carried "(add-on)" in their names since 16 October and which they replace for new purchases. Existing subscriptions can still be renewed and their seats changed.
Microsoft says this changes how Copilot is bought, not what it can do, and that Copilot still depends on the Microsoft 365 apps and services a customer is licensed for.
Also from 1 December, new Copilot Business licences bought through Microsoft's reseller programme, known as CSP, come with usage-based billing switched on. It pays for newer features that are charged per use in Copilot Credits, such as Copilot Cowork and the Work IQ API. The default limit is 4,000 Copilot Credits per user per month, and customers pay only for what they use. Admins can change the limit in the Microsoft 365 admin center. Microsoft had first planned this for 2 November.
The billing change will not be available at first in Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland and Spain. Microsoft says it will share more as it reaches those markets.
What it means for you
- You no longer need a Microsoft 365 plan to buy Copilot, but it only works with the Microsoft 365 apps and services you are licensed for.
- If you buy new Copilot Business licences through a reseller after 1 December, each user can spend up to 4,000 credits a month on per-use features unless an admin lowers the limit.
- The price of a Copilot seat does not change.
What to do now
- Before buying new Copilot Business seats, ask your Microsoft reseller whether usage-based billing will be on and what the credits will cost you.
- In the Microsoft 365 admin center, under Copilot and then Cost management, set spending limits per user and for the whole company.
- Decide which staff need per-use features such as Copilot Cowork, and give access only to them.
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