Microsoft Delays Default Usage-Based Billing for Copilot Subscriptions

Microsoft has delayed its plan to implement default usage-based billing (UBB) for new Microsoft 365 Copilot Business subscriptions purchased through the Cloud Solution Provider (CSP) program.

The delay is from November 2nd to December 1st, giving partners more time to become technically ready and test UBB. On November 2nd, Microsoft will release Partner Center sandbox environments so that solution providers can become familiar with UBB.

Under the delayed plan, Copilot Business licenses will have an adjustable default spending limit of 4,000 Copilot Credits per user per month, which is approximately $40. This cap can be adjusted to zero to turn off usage-based billing.

Microsoft aims for a license-plus-consumption pricing model for Copilot and AI tools, where users receive a certain amount of compute under the license and Microsoft charges based on consumption for more advanced AI usage.