Microsoft turns on usage billing by default for new Copilot Business seats
From December 1, new Copilot Business licenses bought through partners come with a pay-as-you-go meter already on. Finance sets the cap or inherits Microsoft's.
What happened
Microsoft posted a partner notice on October 1, 2026 and updated it on October 14. Usage-based billing will be on by default for new Microsoft 365 Copilot Business licenses bought through Cloud Solution Provider partners, starting December 1, 2026. Pay-as-you-go covers usage-based features including Copilot Cowork, Work IQ APIs, and GitHub Copilot Harness. The default spending limit is 4,000 Copilot Credits per user per month, and admins can change it. Microsoft’s own example says 100 users can consume up to 400,000 credits a month under the default. From December 1, new Copilot offers also no longer need a Microsoft 365 base subscription.
What it means
The seat license is no longer the whole bill. A per-user subscription now ships with a variable meter attached, and the meter starts on. The default cap is a number Microsoft picked, not one your budget picked. Microsoft frames the change as less billing setup for customers. It also means agent usage can grow without a purchase order.
Why it matters to you
For the controller, this is a new accrual. Usage-based AI spend arrives monthly and moves with how hard people push the agents. For FP&A, the forecast driver shifts from seat counts to consumption. For procurement, the approval point shifts from buying licenses to setting limits in an admin center.
What to watch
The date to watch is December 1, 2026, when usage billing turns on by default for new Copilot Business seats bought through partners. Watch whether Microsoft changes the default limit of 4,000 Copilot Credits per user per month. The first monthly invoices after December 1 will show how fast usage grows without a purchase order.