Microsoft Blends Per-Seat Pricing with AI Usage Charges

Microsoft is shifting its pricing model for AI services to include both user licenses and variable billing tied to usage. This hybrid approach combines recurring seat fees with charges based on consumption of AI capacity.

The company's financial results show that Dynamics 365 Customer Service credit consumption rose fourfold quarter over quarter, while GitHub Copilot generated 'significant consumption revenue' after its June billing change.

GitHub Copilot now uses token-based billing, where Business users pay $19 per user and Enterprise users pay $39, with equivalent base allowances of GitHub AI Credits. Additional use can be purchased at published rates once the shared organizational pool is exhausted.

Copilot Cowork also combines licensing and metered consumption, while selected Dynamics 365 agent capabilities use consumption billing with prepaid capacity and pay-as-you-go options.