Microsoft 365 Copilot Business shifts to usage-based billing by default on December 1

Starting December 1, 2026, any new Microsoft 365 Copilot Business subscription purchased through a Cloud Solution Provider will have pay-as-you-go billing switched on automatically. Microsoft moved the date from the previously announced November 2 after updating its Partner Center guidance in October.

The change affects new standalone Copilot Business licenses and bundles that include them. Everyday Copilot features inside Word, Excel, PowerPoint, Outlook, and Teams remain covered by the flat subscription fee. The usage-based charges apply only to more advanced AI workloads that draw on Copilot Credits — services such as Copilot Cowork, Work IQ APIs, and GitHub Copilot Harness. Microsoft sets the default spending limit at 4,000 Copilot Credits per user per month, which one analysis puts at roughly $40 per user per month in potential additional charges. Administrators can adjust that limit in the Microsoft 365 admin center under Copilot Cost Management. Existing subscriptions are unaffected until their first renewal on or after December 1.

Organizations buying new Copilot Business licenses between now and the end of November may want to confirm the billing structure with their CSP partner before purchasing. Those already on Copilot Business should review their renewal dates and decide whether to set a lower credit ceiling — or zero — before December 1 to avoid unexpected charges on their first post-change invoice.