Microsoft splits Copilot billing into two tiers: what admins need to set up before usage takes off

Microsoft has split Copilot billing into two tiers. Everyday, routine tasks stay included in the per-user licence you already pay for. Agents that keep working on their own for a while, advanced SharePoint features and access to the newest models now fall under usage-based billing with Copilot Credits. For admins who have already rolled out Copilot, or plan to in the coming months, this changes what you need to set up before users even see the button.

The trigger is more than a new price structure on paper. Copilot in SharePoint and Copilot in OneDrive reached general availability on 30 September 2026, and they are the first major features to work under this split model. What happens there now is a preview of how the rest of Microsoft 365 will work in the coming months.

What stays included, and what does not

Everyday AI covers what most users do day to day: summarising a document, turning a meeting transcript into action items, asking a question about a file, or organising content in a library. That usage stays part of the Copilot licence you already have, with no separate bill attached.

Once the work counts as Advanced AI, that changes. Think of agents that keep working independently for a while without anyone steering them step by step, such as Cowork, Code and Autopilot, and the heavier SharePoint features: generating images, on-demand site analytics, or file properties that get filled in automatically. Those features consume Copilot Credits, and credits have to be switched on before anyone can use them.

For business customers, credits stay off by default

For organisations on a business Microsoft 365 plan, usage-based billing stays disabled until an admin creates a spending policy themselves. That happens in the Microsoft 365 admin center, under Copilot and then Cost Management. As long as that step has not been taken, no unexpected bill can appear, but users simply will not see the advanced features either.

That last part causes confusion in practice. An employee who tries to generate an image in a SharePoint library and sees nothing happen quickly assumes the feature is broken. In reality, it is waiting on a deliberate choice by the admin. Explain that difference to your users so these questions do not land on the IT desk unnecessarily.

What a spending policy actually controls

A spending policy sets a maximum number of credits, not an amount in euros. Those credits are pooled at tenant level: usage across all users adds up to one total, which is measured against the limit you set.

Once an organisation hits that limit, users covered by the policy lose access to the related agents and features until credits reset on the first of the following month. Policies can already be set per organisation or per service, and Microsoft is working on further breakdown by user group.

Why this goes beyond SharePoint

SharePoint and OneDrive are where this model becomes visible first, but not the only place. Microsoft is building the same split between everyday use and advanced consumption into agentic features elsewhere in Microsoft 365, such as an agent that triages email or an automation agent that takes over a fixed process. Setting up a spending policy and a way of monitoring now means you will not have to redo that for every separate feature a few months from now.

What this means for your own rollout

Whether you are about to roll out Copilot more broadly or have already done so, this is the moment to choose deliberately instead of leaving the default in place. Start with a limited policy for a small group, for example the team that needs the advanced SharePoint features most, and track usage for a few weeks through the Cost Management dashboard before expanding further.

Avoid the two extremes we often see in practice: turning everything on without a limit, after which nobody quite knows where the budget is going, or leaving everything switched off, so users miss features without understanding why. A phased rollout with a clear limit gives you control without throwing away the value of Advanced AI.

Want help setting up your Copilot licences, configuring a spending policy, or working out which teams actually need the advanced features? Zarioh can help shape a Microsoft 365 environment that fits your organisation. Get in touch for a no-obligation conversation.