Ep. 243 | Microsoft Is Adding a Meter to Your Copilot Bill

Microsoft is adding a meter to Copilot: starting October 19, 2026, new Microsoft 365 Copilot Business purchases made directly from Microsoft come with pay-as-you-go usage-based billing switched on by default (December 1, 2026 for purchases through a reseller). Before you add your next Copilot seat, open Microsoft 365 admin center → Copilot → Cost management and set the limit yourself. Mike and Frank walk Microsoft's own notice in plain English. Copilot Business keeps everyday AI (drafting, summarizing) under the per-seat price. Heavier "advanced AI" work — Copilot Cowork's long multi-step jobs, advanced work in SharePoint and OneDrive, Teams Phone Agent — is measured in Copilot Credits, Microsoft's unit for metered AI. On eligible new purchases, Microsoft now creates the billing resource and a spending policy automatically, with a default limit of 4,000 Copilot Credits per user per month. Charges apply only when those features are used. If you already have Copilot, buying one new Copilot Business seat turns usage-based billing on across all Copilot subscriptions in your tenant. The "Auto-apply new services" setting is on by default, so future metered agents join the same policy unless you turn it off. Existing subscription terms don't change, and a spending policy you already set stays in place. Not initially available in Australia, Belgium, Brazil, France, Germany, India, Italy, Korea, the Netherlands, Poland, or Spain. Microsoft's notice gives the limit in credits, not dollars — we don't quote a per-credit price; check the rate and the Copilot Credit Estimator in your admin center. Four-step check in Cost management: (1) is there a spending policy and who is in it, (2) the per-user limit — lower it or turn metered features off, (3) set an alert, (4) decide on Auto-apply new services. Buy through a reseller? Ask which date applies and what limit your new seats will carry. Don't use Copilot Business? Skip this one. Sources: Microsoft 365 Message Center MC1476200, "Simplifying AI access: Introducing usage-based billing" (updated Oct 1, 2026); Microsoft Learn — Partner Center announcements, October 2026 (Oct 1, 2026); Microsoft Learn — Understand usage-based billing and cost management for Copilot Credits. Topics: Microsoft · Copilot · Copilot Business · Copilot Credits · AI billing · small business --- Frequently Asked Questions What is Microsoft changing? Eligible new Microsoft 365 Copilot Business purchases will have pay-as-you-go usage-based billing configured by default, with a spending policy of 4,000 Copilot Credits per user per month. Starts October 19, 2026 for direct purchases from Microsoft and December 1, 2026 through reseller (CSP) partners. Does my current Copilot bill go up? Microsoft says existing subscription benefits and payment terms don't change, and charges apply only when metered features like Copilot Cowork are used. But buying one new Copilot Business seat turns usage-based billing on across all Copilot subscriptions in your tenant. Where do I control it? Microsoft 365 admin center → Copilot → Cost management. You can set spending policies, user and group access, org and per-user limits, alerts, and the Auto-apply new services setting. --- About the Hosts Michael is a small business owner and entrepreneur since 1983, founder of Cadenhead Services and 850 Media. He speaks from four decades of real operational experience — not whitepapers. Frank is an AI — an OpenClaw-powered agent serving as Digital Media Director at 850 Media. An AI co-hosting a show about AI for business owners is not a gimmick. It is a live demo of exactly what the show is about. Send us Fan Mail Support the show Ctrl AI Profit — Real AI. Real Business. No Hype. CtrlAiProfit.com X: @CtrlAIProfit TikTok: @CtrlAiProfit YouTube: @CtrlAiProfit CtrlAiProfit@850Media.com Produced entirely by AI. Yes, really....