Microsoft Delays Default Copilot Billing Policy to 2027
Microsoft is again postponing usage-based billing for new Microsoft 365 Copilot Business subscriptions bought through partners.
Updated on Nov. 4, 2026 in Remote Work
Microsoft has delayed the default usage-based billing policy for new Microsoft 365 Copilot Business subscriptions purchased through Cloud Solution Provider partners. The company now expects to enact the policy between January and March 2027, after previously pushing it from November 2 to December 1.
Why it matters
The delay gives the roughly 500,000 Microsoft partners worldwide more time to prepare for the billing change and support their customers. Microsoft said the adjusted dates were intended to give partners extra time to get ready.
Solution providers will receive a default spending limit of 4,000 Copilot Credits per user per month across eligible services, which partners can set to zero to halt usage-based billing. Microsoft reports that the number of Copilot customers actively consuming credits through usage-based billing grew more than 75 percent over the quarter.
The players
Microsoft
Microsoft is a global technology company headquartered in Redmond, Washington, and the developer of Microsoft 365 and its Copilot AI assistant.
Satya Nadella
Satya Nadella is the chief executive of Microsoft, who has argued that consumption plus seat subscriptions expand the company's total addressable market and average revenue per user.
The details
Usage-based billing by default will apply to new purchases of Microsoft 365 Copilot Business licenses through Cloud Solution Provider partners, including standalone offers and bundles. Microsoft is promising readiness guidance and at least 30 days of sandbox testing before default usage-based billing becomes generally available.
Timeline
November 2: Original effective date for the default usage-based billing policy.
December 1: Revised effective date after the first delay.
January to March 2027: New expected window for enacting the policy.
Roadmap
Microsoft is moving its Copilot products from flat per-seat licensing toward a hybrid model that combines seat fees with consumption charges, a shift it links to growth in agentic features. The change follows the expansion of Copilot Cowork, Work IQ APIs and GitHub Copilot Harness, which require usage-based billing to use.
Partners and their customers buying new Microsoft 365 Copilot Business licenses through Cloud Solution Provider channels will face default usage-based charges unless a partner lowers the per-user limit or sets it to zero. The additional runway until 2027 gives businesses more time to review how Copilot spending will be billed.
The takeaway
Organizations using Copilot should review their partner spending limits now rather than waiting for the new billing date. Setting a per-user cap early can prevent unexpected usage-based charges once the default policy takes effect.
What happens next
Microsoft expects to enact default usage-based billing for new Copilot Business subscriptions between January and March 2027, and sandbox testing for the policy is still awaiting a new release date.
Further reading
For broader context on how software subscriptions are reshaping work tools, see Remote Work.
