Microsoft is taking the next step in how you pay for AI. From November 2, 2026, new Microsoft 365 Copilot Business licenses bought through a CSP partner include usage-based billing by default. Pay-as-you-go with Copilot Credits is switched on from day one. That sounds like a small administrative change, but it reverses an important threshold. Until now you had to deliberately switch on Copilot Cowork. Soon the door is open by default, and a variable bill can quietly build up next to your fixed license. Cost management is no longer optional, it's a necessity. In this article you'll read what changes, what it costs and what to arrange before November.
What changes on November 2?
Microsoft announced the change in Partner Center on September 16, 2026. The key points:
- Who: new purchases of Microsoft 365 Copilot Business through CSP, both standalone and in bundles.
- What: usage-based billing is on by default, with pay-as-you-go as the default billing method.
- Included: the Azure subscription needed for usage-based billing is set up right away, with a preset monthly limit.
- For: services billed by usage, such as Copilot Cowork, Work IQ APIs and GitHub Copilot Harness.
From switching on deliberately to on by default: where the surprise comes from
This is the change you really need to pay attention to.
Until now, nobody could use Copilot Cowork before an administrator had deliberately set it up: link an Azure subscription, activate a spending policy and choose a limit. If that hadn't happened yet, a user opening Cowork landed on a page to request access. Those steps felt like a hassle, but they were also a natural brake. Whoever switched Cowork on had to think about who could use it and what it could cost.
From November 2, that brake is gone for new licenses. Pay-as-you-go is on, the Azure subscription is linked and a monthly limit applies that you didn't choose. And in the agent settings, Cowork is available to all users by default: anyone with a Copilot license can find and install it themselves from the Agent Store, or via "Get agents" in Teams and Outlook. A realistic scenario:
- An employee finds Cowork in the Agent Store, installs it and has it carry out a few large tasks, such as a market analysis, a series of reports or a mailbox clean-up.
- Every task consumes credits, depending on how long and complex it is. A colleague does the same, and another.
- Nobody in IT or finance deliberately switched this on, and without alerts configured, nobody gets a heads-up either.
- The cost shows up afterwards on the monthly invoice.
On top of that, the Auto-apply new services setting is on by default. New agents and services that Microsoft adds later can then also consume credits straight away under the same policy.
That doesn't mean you should avoid Cowork: used well, it delivers a lot. But the choice of who uses it and how much it may cost is now something you have to make actively yourself, instead of the setup forcing you to make it.
What are Copilot Credits?
Copilot Credits are the common currency for AI services billed by usage. Your fixed Copilot license covers the familiar features in Word, Excel, Outlook and Teams. For heavier, autonomous work, such as a multi-step task in Copilot Cowork, you pay in credits on top of that.
According to Microsoft, the number of credits a task uses depends on four components:
- Models: which AI model carries out the task
- Runtime: how long the agent is working
- Context: how much information is retrieved from email, files and meetings
- Tools: the actions taken, such as sending an email or updating a document
Credits are pooled at tenant level. Your total cost is the sum of all credits consumed across your organization.
What does it cost?
There are two ways to buy credits:
| Option | Price | Suitable for |
|---|---|---|
| Pay-as-you-go | $0.01 per credit, billed monthly in arrears | Getting started, variable usage |
| Pre-Purchase Plan (P3) | Paid up front for one year, 5% to 20% discount from 300,000 credits | Predictable, high usage |
With P3, unused credits expire at the end of the year. Usage beyond your prepaid credits automatically continues on pay-as-you-go. Prepaid credits are always used first.
An example: a monthly limit of 20,000 credits for the whole organization comes to at most $200 per month. A limit of 2,000 credits per user is $20 per user per month. For more on weighing cost against value, read Copilot Cowork: an extra colleague, not an extra cost.
Cost management: what to arrange before November 2
You manage usage-based billing in the Microsoft 365 admin center under Copilot, Cost management. Don't assume the default settings fit your budget. Go through these points, or let us do it for you:
- Organization monthly limit: check the preset limit and adjust it to what you want to spend. When a policy reaches its limit, users lose access to credit-consuming services until the first of the next month.
- Per-user limit: optional, but sensible. It prevents a single user from using up the entire budget.
- Who can install Cowork: go to Copilot, Agents, All agents and open Copilot Cowork. By default it is available to all users. Choose specific users or groups if you want to start with a pilot group, or block it until you're ready.
- Who can consume credits: a spending policy also applies to all users by default. Limit it to the same security groups, so access and budget line up.
- Auto-apply new services: this setting is on by default. New services and agents that Microsoft adds then automatically fall under your policy and can consume credits. Turn it off if you want to review new services first.
- Alerts: set a threshold (in credits or as a percentage) at which administrators receive an email, and optionally a notification for users approaching their own limit.
- User requests: users can request extra credits. Decide who reviews them; requests can also be redirected to your own ITSM portal.
- Roles: give finance or management a reader role (such as AI Reader or Global Reader), so they can follow consumption without being able to change settings.
Users can also see what a task costs: in Copilot Cowork, the `/cost` command shows the estimated credit usage of the current task.
Note: Cowork and Anthropic in Europe
Cowork runs on multiple AI models, including Claude from Anthropic. Microsoft's Copilot Credits Guide (September 2026) lists Anthropic enabled in the tenant as a prerequisite for Cowork. For Dutch and other European tenants, Anthropic is off by default because processing takes place outside the EU Data Boundary, which means Cowork is also off by default in the EU. Microsoft indicates that alternative models within the EU Data Boundary may become available, but don't count on that yet.
Two things to know:
- Having pay-as-you-go switched on is not enough: you also need to make a deliberate choice about Anthropic.
- Anthropic is switched on or off tenant-wide. Restricting it per group or user isn't possible yet; it's on Microsoft's roadmap. If you want Cowork for a pilot group only, handle that through agent availability and your spending policy. How that works and where to find the setting is explained in Anthropic Claude in Microsoft 365 Copilot.
Does this also apply to the regular Microsoft 365 Copilot license?
No. The announcement only covers Microsoft 365 Copilot Business, the edition for organizations with up to 300 users, and only new purchases through CSP. This is how the licenses compare after November 2:
| Copilot Business (new via CSP) | Microsoft 365 Copilot | |
|---|---|---|
| For whom | Up to 300 users, on top of Business Basic, Standard or Premium | Unlimited users, e.g. on top of E3 or E5 |
| Copilot in Word, Excel, Outlook and Teams | Included in the fixed license | Included in the fixed license |
| Cowork and other credit-based services | Consumption in Copilot Credits | Consumption in Copilot Credits |
| Pay-as-you-go from November 2 | On by default, with a preset limit | Not announced: an administrator activates it |
So for Microsoft 365 Copilot the threshold stays in place: Cowork only works after an administrator has activated usage-based billing in Cost management. That doesn't mean costs need no attention there. Once it is switched on, exactly the same risks and the same checklist apply.
Running a mix, for example a few new Copilot Business licenses next to existing licenses? Then take a close look at what has been set up in Cost management after the purchase, because credits are consumed at tenant level.
For all the differences between the two licenses, from price to governance, see Copilot Business vs Microsoft 365 Copilot. Want to know what Copilot Business includes first? Read what is Microsoft 365 Copilot Business?.
What about existing licenses?
The announcement covers new purchases from November 2, 2026. Microsoft does not mention an automatic change for existing Copilot Business licenses. If you want to use Cowork there, you set up usage-based billing yourself. Our knowledge base article on Copilot Cowork cost management and billing explains the steps.
Universal Cloud sets it up for you
A variable AI bill should be a deliberate choice, not a surprise. As a CSP partner, we set up cost management for you, with limits and alerts that match your budget. We help you choose which teams use Cowork first, make a deliberate decision about Anthropic and monitor consumption proactively. Get in touch if you want to know where you stand before November 2.
