Microsoft Copilot AI Pricing Adds Credits for Agents

A Microsoft Copilot subscription is no longer the whole answer to what an organization pays for Copilot work. Microsoft draws a billing line between everyday tasks covered by a user subscription license (USL) and advanced work charged through usage-based billing (UBB). The latter consumes Copilot Credits on top of the license.

Microsoft lists Cowork, Code and Autopilot among the credit-billed experiences. Before users can access experiences that require UBB, an administrator must configure a billing policy. A subscription alone does not authorize that work.

Microsoft set out the split in its USL and UBB guidance, updated September 25, 2026. Buyers and admins need to decide how many people need licenses, who may run advanced agents, whose budget will fund them and what spending limits should apply.

The User License Covers Everyday Copilot Work

Microsoft describes USL as the fixed-price foundation for routine AI work. In its September 25 Copilot announcement, the company places Chat and Copilot work across Word, Excel, PowerPoint, Outlook and Teams on that side of the divide. Its examples include drafting a document, summarizing a meeting and getting help with an analysis.

Fixed-price does not mean unlimited use of every model. Microsoft says model selection is part of USL, with some models subject to fair-use provisions and others to usage limits. Its default Auto mode selects a model and level of reasoning effort for a request, weighing factors including speed, accuracy and cost.

Someone asking Chat to summarize a meeting should not have to decide which model to buy for that ordinary task. Still, model choice within the subscription does not bring every frontier model or advanced capability into the fixed-price allowance. The boundary follows the work being done, even when Chat and Cowork appear alongside each other in Home.

Cowork, Code and Autopilot Sit on the Credit-Billed Side

UBB covers advanced, often longer-running work that calls for more time, computing resources or specialized models, Microsoft says. Its licensing guidance names Cowork, Code and Autopilot, new agentic experiences in SharePoint, and certain frontier models, including Astra and Fable. These UBB experiences consume Copilot Credits and require a USL for access. Credits are therefore not presented as a replacement for the user's subscription in this guidance.

The product descriptions show the range of work involved. Chat handles conversational requests and drafts. Cowork is designed for delegated, end-to-end tasks, such as assembling a customer briefing. Code is intended to build purpose-made apps, dashboards and workflows from a description. Microsoft describes Autopilot as a persistent agent that can continue assigned work without waiting for each new prompt.

Those descriptions do not give buyers a simple conversion from “one task” to a credit charge. A short request and a long-running agent assignment are not interchangeable budgeting units. Organizations need the relevant service's billing details and their own usage data to forecast spending.

The app where a task begins is not enough to identify its billing category, either. Everyday drafting and analysis sit under USL, while Microsoft identifies some advanced, agentic capabilities as credit-billed. Admins assessing a workflow should check the specific experience and model being used.

Credit Billing Changes the Procurement Question

An organization can start a conventional per-user license budget with the number of seats it plans to assign. Copilot adds a usage-sensitive decision: a team may license a broad group for everyday Chat and Office work while allowing only selected users or business units to consume credits for agents.

Copilot Credits are the billing unit for eligible usage-based services. Microsoft's Copilot Credits cost-management guidance describes several supported funding approaches, including a Copilot Credit pre-purchase plan, pay-as-you-go billing and prepaid capacity packs. Supported combinations depend on the service. The guidance does not establish one universal per-credit price or a flat charge for every Cowork, Code or Autopilot task.

Procurement teams therefore need to identify the services they intend to enable, how they will fund them and how much use they are prepared to support. A pilot can provide evidence for a larger budget; the number of licensed users alone cannot predict agent spending.

Access and consumption also need separate attention. A person may hold a USL without permission to use a credit-billed experience. Approving an agent for a group creates a route to usage charges, but it does not establish how much the group will consume.

Admins Must Configure a Billing Policy Before Access

Microsoft's instruction is explicit: admins must set up a billing policy before a user can use an AI experience that requires UBB. Assigning a Copilot license alone does not complete that setup.

Microsoft points admins to cost management in the Microsoft 365 admin center. Its documentation says spending policies can specify eligible users and groups, covered services, billing methods, and organization- or user-level spending limits. The dashboard supports monitoring consumption by dimensions such as policy, user, group, agent and service.

For an organization preparing to deploy an advanced agent, the sequence is:

1. Confirm that intended users have the required Copilot subscription license.
2. Identify the credit-billed experience and which users or groups should be allowed to use it.
3. Configure a billing policy, funding method and appropriate spending limits in cost management.
4. Monitor consumption after access is granted, then adjust the policy against actual use.

One setting deserves particular attention. Microsoft's cost-management guidance says auto-apply new services is enabled by default for spending policies, allowing future supported Copilot services and agents to inherit a policy. Admins who want to review each addition before it becomes eligible can turn that setting off for the relevant policy. A policy created for today's deployment should be revisited as the service list grows.

Policy coverage can also explain why a licensed employee cannot open a credit-billed experience. For an IT help desk, checking the policy may be more useful than assuming the employee lacks a subscription.

The Billing Rules Are Clearer Than the Rollout Calendar

The USL and UBB distinction does not mean every named product is available to every customer. In its September 25 announcement, Microsoft said Home and Code would begin rolling out through its Frontier program in the coming weeks, while Autopilot would expand to private preview at the end of the month. These were rollout plans, not a statement of universal availability.

Some billing-related user experiences have a separate timetable. Microsoft's September 25 licensing guidance describes notifications as users approach certain USL limits, and an option to continue with credits after reaching a limit, as coming soon. It also describes additional ways for users to see credit consumption or request credits as future improvements. Admins should not build a deployment plan around those options until they are available in the relevant environment.

Before granting access, check the particular agent or model's availability and licensing requirements, then put the necessary billing policy in place. The pricing model explains how advanced work will be funded; it does not accelerate a feature's rollout.

Final Thoughts

Microsoft's split lets organizations license routine Copilot work broadly without assuming every agent assignment is included in an unlimited seat price. Someone who uses Chat under a subscription may still need a separate policy decision before delegating a job to Cowork or another credit-billed agent.

The setting I would check first is the spending policy's scope, including whether it automatically covers future services. That choice determines whether agent access expands deliberately, with a budget attached, or inherits permissions intended for an earlier rollout.