Microsoft is splitting Copilot into everyday features covered by the normal per-user licence and advanced features billed by usage. Nothing is charged until an administrator sets a spending policy, but businesses should decide their position now.

• What it is: Advanced AI features will use Copilot Credits, billed on consumption. Everyday features stay on the standard licence. Usage-based billing rolls out during the final quarter of 2026.
• Who is affected: Administrators and any staff who use advanced Copilot features. Microsoft states the billing does not activate in a tenant until an admin creates a spending policy.
• Related changes: A redesigned Copilot app is rolling out, and PowerShell opt-outs for Copilot in SharePoint end on 1 November. Pay-as-you-go OneDrive storage also begins general rollout in early November, but only if you opt in.
• What to do: In the Microsoft 365 admin centre, review Copilot, then Cost management, and set a default spending policy.

We recommend confirming who in your business uses Copilot and setting a spending limit before the billing change reaches your tenant.

Source: ChangePilot