Microsoft Shakes Up Copilot Pricing Model with Usage-Based Billing for Advanced AI

Microsoft has made significant changes to its Copilot pricing model, splitting it into 'everyday AI' and 'advanced AI' for enterprise customers. The new structure separates tasks that can be handled by everyday AI, such as summarizing documents or meeting transcripts, from those requiring advanced AI capabilities like long-running agents and unsupervised workflows.

The 'everyday AI' tier will continue to use the per-user Copilot license (USL), priced at $0.01 per credit, with fair-use limits in place to prevent abuse. In contrast, the 'advanced AI' tier will be billed based on usage, with Copilot Credits being used for long-running agents and unsupervised workflows.

MICROSOFT HAS ALSO introduced new FinOps features, including cost management for Code and Managed Runtime alongside Cowork, group-level model access controls in Cowork, and end-user visibility into credit usage. The company has also stated that some capabilities will move from the USL to the UBB over time.