Pricing and Licensing Options

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Microsoft’s Copilot ecosystem offers various pricing tiers and licensing models to accommodate different user types and organizational needs. Here’s a comprehensive breakdown of all available options:

Microsoft 365 Copilot (Business/Enterprise)

Core Pricing

The license fees are $30 per user, per month for Copilot for Microsoft 365 and $20 per user, per month for Copilot Pro. The price is $30 per user per month, regardless of your industry, size, and Enterprise Agreement discount level.

Licensing Requirements

A separate license for a qualifying Microsoft 365 plan is required to purchase Microsoft 365 Copilot. At the time of Copilot’s initial release, users needed active Microsoft 365 licenses — either E3 or E5.

Business vs Enterprise Plans

This plan is built for companies with more than 300 employees. Essentially, this is the only difference between the Business and Enterprise plan since both have: The same pricing ($30 per user per month or $31.50 if billed monthly). The exact same feature suite.

Billing Flexibility

The monthly billing option for annual term subscriptions of Copilot will be priced 5% higher than the annual billing option and will be available across Buy Online, CSP, and MCA-E.

Seat Requirements

The 300-seat minimum was removed on January 16, 2024, making it accessible to smaller organizations.

Microsoft Copilot Pro (Consumer)

Pricing and Features

  • Cost: $20 per user per month
  • Target Audience: Individual consumers and small businesses
  • Features: Unlock priority access to premium AI features and the latest models for quick answers and high-quality image creation. Then, pair Copilot Pro with your Microsoft 365 Personal or Family subscription to draft documents, emails and presentations

Copilot Chat (Free Tier)

Copilot Chat is available at no additional cost for all Entra account users with a Microsoft 365 subscription. This provides basic AI assistance without the full Copilot integration.

GitHub Copilot Pricing

Individual Plans

  • Free Tier: Available for verified students, teachers, and open-source maintainers
  • GitHub Copilot Pro: $20 per month with 300 monthly premium requests beginning on May 5
  • GitHub Copilot Pro+: offers the highest level of access for individual developers. In addition to everything in Copilot Pro, this plan includes Copilot coding agent, a larger allowance of premium requests, and full access to all available models in Copilot Chat

Business Plans

  • GitHub Copilot Business: $19/month with 300 monthly premium requests
  • GitHub Copilot Enterprise: $39/month with 1,000 monthly premium requests

Premium Request Pricing

GitHub Copilot’s Pro+ tier, currently in limited rollout, offers 1,500 premium requests with $0.04 per additional request. In pro plan you will get 725 premium request at additional 29 usd and you are also paying 10 usd per month for plan but with same cost, in 39 usd you will get 1500 premium request, which is 2x more and 5x more as compare to pro plan default premium requests.

Copilot Studio Licensing

License Types

There are three different Copilot Studio license plans:

  • Copilot Studio in Microsoft 365 Copilot: agents built in Copilot Studio for Microsoft Teams, SharePoint, and Microsoft 365 Copilot, are included at no extra charge
  • Pay-as-you-go: With the pay-as-you-go meter, at the end of each month, you’re billed for usage
  • Prepaid capacity packs: Prepaid Microsoft Copilot Studio capacity packs are also available

Azure Requirements

An Azure subscription is required to use agents in Copilot Studio.

Additional Copilot Services

Microsoft Security Copilot

  • Typically priced separately for enterprise security teams
  • Requires specific Microsoft security subscriptions

Copilot for Sales & Service

  • Priced separately from Microsoft 365 Copilot
  • Designed for specialized sales and customer service workflows

Cost Considerations

Hidden Costs

The total cost of ownership includes:

  • Base Microsoft 365 licensing requirements
  • Potential infrastructure upgrades
  • Training and change management
  • Ongoing support and administration

ROI Factors

Organizations should consider:

  • Productivity gains from AI assistance
  • Reduced time spent on routine tasks
  • Improved document quality and consistency
  • Enhanced collaboration capabilities

Negotiation Challenges

Enterprise Agreement clients are struggling to negotiate any discounts on Copilot licensing, as Microsoft maintains consistent pricing across agreements.

Free Options

Several free tiers are available:

  • Basic Copilot Chat with Microsoft 365 subscriptions
  • GitHub Copilot for students, teachers, and open-source maintainers
  • Limited-time promotional trials

The pricing landscape for Microsoft Copilot continues to evolve, with Microsoft regularly introducing new features and adjusting pricing models based on market demand and competitive pressures. Organizations should evaluate their specific needs and user base to determine the most cost-effective licensing approach.

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