MICROSOFT COPILOT LICENSING
As Microsoft continues to expand its AI-powered productivity suite, organizations can adopt specialized Copilot add-ons to enhance workflows in sales, customer service, and other business functions. This Copilot licensing guide provides a detailed overview of the licensing requirements and capabilites of not only Copilot for Microsoft 365, but also Copilot for Sales, Copilot for Service, Copilot Studio, and other related SKUs.
Table of Contents
- Microsoft Copilot Chat
- Microsoft 365 Copilot
- Copilot for Sales
- Copilot for Service
- Copilot Studio
- GitHub Copilot
Microsoft 365 Copilot Chat
Copilot Chat is a new, flexible AI chat experience designed to bring conversational AI and agent-based automation to every employee.
- Key Features:
- Web-grounded chat powered by GPT-4o
- File uploads for document summarization and analysis
- Copilot Pages for collaborative content creation
- Custom agents to automate business processes using natural language
FREE
Included with every Microsoft 365 subscription
Microsoft 365 Copilot
Microsoft 365 Copilot is a general-purpose AI assistant embedded across Word, Excel, PowerPoint, Outlook, and Teams.
Licensing Requirements
- Eligible Plans: Microsoft 365 E3/E5, Business Standard/Premium, Office 365 E1/E3/E5, and others
- Add-On SKU: Microsoft 365 Copilot is a paid add-on per user, not included by default in base plans
Microsoft 365 Copilot
Month to Month Commitment
N/A
only annual plans available
Annual Commitment
(pay monthly)
$31.50
per user/month
Annual Commitment
(pay upfront)
$30
per user/month
$360
per user/year
Microsoft Copilot for Sales
Copilot for Sales is an AI assistant designed to empower sellers by integrating Microsoft 365 productivity tools with CRM platforms like Dynamics 365 Sales.
Key Features
- AI-generated insights and summaries in Outlook and Teams
- CRM data integration for real-time sales context
- Role-based skills and productivity enhancements
- Teams intelligent recap and Microsoft 365 Copilot access
Licensing Requirements
- Base License: Microsoft 365 E3/E5, Business Standard/Premium, or Office 365 E1/E3/E5
- Dynamics 365 Sales Premium users only need to purchase Microsoft 365 Copilot to activate Copilot for Sales.
- Add-On SKU: Licensed per user as an add-on to the base Microsoft 365 subscription
Microsoft Copilot Sales
Month to Month Commitment
N/A
only annual plans available
Annual Commitment
(pay monthly)
$52.50
per user/month
Annual Commitment
(pay upfront)
$50
per user/month
$600
per user/year
Microsoft Copilot for Service
Copilot for Service is tailored for customer service agents, enhancing case resolution and customer interactions through AI-driven insights and automation.
Key Features
- AI-generated case summaries and suggested responses
- Integration with Dynamics 365 Customer Service
- Real-time knowledge surfacing and workflow automation
Licensing Requirements
- Base License: Microsoft 365 E3/E5, Business Standard/Premium, or Office 365 E1/E3/E5
- Customers who already have Microsoft 365 Copilot licenses can add the Microsoft 365 Copilot service agent for an additional $20 per user per month, billed annually (annual commitment)
- Add-On SKU: Licensed per user, similar to Copilot for Sales
Copilot for Service
Month to Month Commitment
N/A
only annual plans available
Annual Commitment
(pay monthly)
$31.50
per user/month
Annual Commitment
(pay upfront)
$30
per user/month
$360
per user/year
Copilot Studio
Copilot Studio is your creative partner for building, deploying, and managing AI-powered agents. Designed to empower both technical and non-technical users, these agents can automate tasks, assist with customer service, and integrate seamlessly with Microsoft 365 and Power Platform ecosystems.
Copilot Studio
Message Packs
Best for: Medium to large organizations with consistent usage, Teams that want predictable monthly billing and cost control
Month to Month Commitment
N/A
only annual plans available
Annual Commitment
(pay monthly)
$210
per tenant/month
25,000
messages/month
Annual Commitment
(pay upfront)
$200
per tenant/month
25,000
messages/month
Additional messages are billed at the pay-as-you-go rate if the pack is exceeded.
Copilot Studio
Pay-as-You-Go
Best for: Organizations with unpredictable/low-volume usage, businesses who want to scale gradually and pay for what they use
$0.01
per message
Requires an Azure License
Copilot Studio
in Microsoft 365 Copilot
Best for: Organizations already using Microsoft 365 Copilot, users who need conversational AI within familiar Microsoft environments.
Month to Month Commitment
N/A
only annual plans available
Annual Commitment
(pay monthly)
$31.50
per user/month
Annual Commitment
(pay upfront)
$30
per user/month
$360
per user/year
GitHub Copilot
GitHub Copilot is an AI-powered coding assistant that helps developers write code faster and more efficiently by suggesting code completions, generating functions, and even reviewing code. It integrates directly into popular IDEs (Integrated Development Environment) like Visual Studio Code, Visual Studio, and JetBrains IDEs, and is available in multiple tiers for individuals and organizations.
Key Features
- Copilot Chat: Available in all paid plans, with unlimited usage on base models
- Copilot Coding Agent: Available in Pro+ and Enterprise plans; automates multi-step coding tasks
- IDE Integration: Works in VS Code, Visual Studio, JetBrains, and GitHub.com
- Code Review: AI-assisted code review (e.g., “Review selection” in VS Code)
- Copilot Extensions: Extend functionality with custom plugins and integrations
Premium requests refer to interactions with more advanced AI models or features that go beyond the standard capabilities included in the base subscription. A premium request typically includes:
- Using more powerful AI models (like GPT-4 or GPT-4o) for code generation or chat
- Accessing Copilot Agents that perform multi-step tasks (e.g., refactoring a whole file, generating tests, or debugging)
- Running Copilot Chat with advanced reasoning or context awareness
- Using Copilot Extensions that integrate with external tools or services
Copilot Pro
Premium Requests
300
/month*
Month to Month Commitment
$10
/month
Annual Commitment
(pay upfront)
$8.33
/month
$100
/year
*Purchase additional premium requests at $0.04/request
Copilot Pro+
Premium Requests
1500
/month*
Month to Month Commitment
$39
/month
Annual Commitment
(pay upfront)
$32.50
/month
$390
/year
*Purchase additional premium requests at $0.04/request
Copilot Business
Premium Requests
300
per user/month*
Month to Month Commitment
$32.50
per user/month
*Purchase additional premium requests at $0.04/request
Copilot Enterprise
Premium Requests
1000
per user/month*
Month to Month Commitment
$39
per user/month
*Purchase additional premium requests at $0.04/request
A free plan is also available with 50 premium requests per month.
Work with xMonthly to Choose the Best Copilot
Choosing the right Copilot product and licensing model be difficult, especially when balancing development, deployment, and scalability needs. That’s where xMonthly comes in.
We can help your organization…
- Evaluate their current and projected Copilot usage.
- Understand the cost implications of different licensing models.
- Set up Azure subscriptions and Power Platform environments.
- Optimize licensing to align with business goals and budget.
Whether you’re just getting started or scaling enterprise-wide, xMonthly can guide you through the process and ensure you’re getting the most value from your investment in Copilot.