Microsoft shifts Copilot to usage-based pricing, boosting growth potential

A new billing model for advanced AI features could unlock revenue that Microsoft's traditional per-seat structure was leaving on the table Starting December 1, 2026, Microsoft will layer a consumption-based billing system on top of its existing Microsoft 365 Copilot subscriptions, charging for advanced AI features through a unit called Copilot Credits, priced at $0.01 each. How the new model works The shift is additive rather than a wholesale replacement. Basic, everyday AI tasks will continue to be covered under the existing fixed seat fee, which currently ranges from $18 to $32 per user per month for Microsoft 365 Copilot Business licenses. What changes is the billing for heavier workloads. Advanced capabilities, specifically Copilot Cowork, Code, and Autopilot, will move to consumption-based pricing billed through Copilot Credits. New Microsoft 365 Copilot Business subscriptions starting December 1 will carry a default spending limit of 4,000 credits per user per month. At the $0.01 per-credit list price, that represents approximately $40 in potential additional monthly cost for each power user. Stand-alone Copilot offerings will also become available starting December 1, 2026, ...