Microsoft Revamps Copilot Pricing for Businesses
▼ Summary
– Microsoft is bundling its Copilot for Sales, Service, and Finance add-ons into the main Microsoft 365 Copilot subscription, reducing the combined cost from $50 to $30 per user per month.
– The company is consolidating its AI teams, with the Copilot, Agents, and Platform Ecosystem (CAPE) team joining the Business and Industry Copilot (BIC) group to align its business AI offerings.
– Microsoft is developing Agent 365, a set of tools for managing AI agents with security and compliance features, planned for announcement at the Ignite conference later this year.
– Copilot monetization will focus on three areas: Microsoft 365 Copilot, Copilot Studio for building custom agents, and Dynamics 365, with Copilot Studio shifting to a Copilot Credits pay-as-you-go model.
– Microsoft is tightening campus security by restricting building access and verifying employee badges, amid recent protests and ahead of an expected return-to-office mandate announcement.
Microsoft is shaking up its pricing strategy for Copilot, aiming to make its AI assistant more appealing to businesses. The tech giant has faced challenges convincing companies to adopt Copilot due to its premium cost, especially as competitors like OpenAI’s ChatGPT gain ground in the enterprise sector. In response, Microsoft is adopting a classic approach: bundling services to deliver greater value and simplify decision-making for potential customers.
Currently, businesses pay $30 per user each month for access to Copilot through Microsoft 365. Additional features, Copilot for Sales, Service, and Finance, have been available as a separate add-on for another $20 per user. According to sources familiar with Microsoft’s plans, the company is preparing to eliminate that standalone fee and integrate those specialized tools directly into the core Microsoft 365 Copilot subscription.
This shift means organizations can access most of Microsoft’s top-tier AI capabilities for a flat $30 per user monthly rate, a significant reduction from the previous combined total of $50. The move is framed as an effort to streamline subscription options and reduce complexity for buyers. By consolidating offerings, Microsoft’s sales teams can now promote a single, comprehensive license rather than navigating a confusing array of add-ons.
These pricing adjustments are part of a broader reorganization within Microsoft’s AI divisions. Earlier this year, Charles Lamanna’s Business and Industry Copilot (BIC) team, which focuses on embedding AI into business applications and industry-specific tools, moved closer to the Microsoft 365 Copilot unit. More recently, Lamanna announced that the Copilot, Agents, and Platform Ecosystem (CAPE) team will also merge with BIC, reinforcing efforts to align business-oriented AI development under a unified vision.
A growing emphasis across the tech industry is the development of AI agents, and Microsoft is no exception. Lamanna’s group is actively building out an initiative called Agent 365, led by long-time Microsoft veteran Nirav Shah. This platform is designed to provide tools for managing AI agents while ensuring they meet organizational security and compliance standards. The Microsoft Admin Center teams are now joining Shah’s Agent 365 effort, reflecting the company’s intent to make administrative tools a central hub for managing both human and AI resources.
Microsoft is expected to formally introduce Agent 365 at its Ignite conference later this year. With this launch and the revised Copilot pricing, the company is sharpening its focus on three key revenue streams: Microsoft 365 Copilot, Copilot Studio, and Dynamics 365.
Copilot Studio, a platform that enables businesses to create custom AI agents, will adopt a new payment model. Instead of a per-message fee, Microsoft will introduce Copilot Credits, which can be applied toward prebuilt agents in Dynamics 365, Power Apps, or Microsoft 365. This offers greater flexibility and predictability for organizations investing in tailored AI solutions.
Behind the scenes, these changes reflect a broader consolidation of Microsoft’s Copilot branding and strategy. Responsibility for Microsoft 365 Copilot and the company’s AI agent roadmap now reports directly to Rajesh Jha, who leads experiences and devices. This represents a significant shift from a year ago, when oversight of Copilot was fragmented across multiple leaders. Consumer-facing Copilot remains under Mustafa Suleyman, CEO of Microsoft AI.
Organizational changes often bring personnel shifts as well. Lili Cheng, who recently expanded her role as CTO of the BIC team, is now returning to Microsoft Research. A veteran who joined the company in 1995, Cheng will lead Microsoft Research labs in New York City, New England, and Montreal.
In other company news, Microsoft is enhancing security protocols at its Redmond campus following recent protests, including an incident where demonstrators entered an office occupied by Vice Chair Brad Smith. New measures restrict building access to prevent unauthorized entry, requiring employees to badge into facilities even if accompanying guests. These changes have led to longer entry lines and limited access to dining services in some buildings, complications that may intensify as Microsoft prepares to announce its return-to-office policy this month.
(Source: The Verge)
