Microsoft's Copilot super app comes with a meter attached
Redmond calls its pricing model an 'evolution' as advanced AI racks up usage charges
Microsoft has introduced a new Copilot super app featuring an evolved pricing model. This model combines a User Subscription License (USL) paid per user per month with Usage-Based Billing (UBB) charged based on the work Copilot performs. The USL covers core features like Copilot Chat and Copilot in Office apps. The UBB is for more demanding tasks like code generation, agentic experiences, and frontier models.
Both billing methods are separate and not interchangeable. Microsoft has previously used consumption-based pricing for certain AI services, but this new pricing is more integrated. Organizations need to enable usage-based features through billing policies and set spending limits to avoid unexpected costs. The new pricing structure aims to support more powerful AI capabilities while giving administrators control over expenditure.
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