đź“° IT News: Usage-Based Billing Expands in Microsoft 365 Copilot
Microsoft has announced usage-based billing (UBB)Â for Microsoft 365 Copilot, a new commercial model which expands the offerings within the broader Microsoft 365 Copilot service.
The new model separates Copilot capabilities into “Everyday AI” and “Advanced AI” categories. Everyday AI consists of the foundational capabilities currently available through the Microsoft 365 Copilot subscription, while Advanced AI includes capabilities such as:
Agentic AI, such as Cowork and Code.
Frontier AI models, as they become available.
Additional usage when Copilot subscription limits are reached (coming soon).
For Advanced AI, usage is charged on a pay-per-use basis, while Everyday AI capabilities remain included in the Copilot subscription.
While there are many implications, a key takeaway for organisations is the growing importance of governing both AI usage and cost.
Although technical controls for AI management are still evolving, organisations can take practical steps today to improve visibility and establish appropriate usage and spending controls. For Microsoft 365 Copilot, these controls include spending limits, feature access controls, cost alerts and usage monitoring.
Another important reminder is that organisations must align AI initiatives with clear business requirements, defined objectives, and measurable value. As commercial models continue to change across the broader AI industry, organisations will need to be deliberate about their AI investments, now more than ever.
