Microsoft Unifies Copilot and Charges Agents by Usage

Microsoft is rolling out a unique Copilot application for individuals and businesses, clearly steering the tool towards Microsoft 365 usage. Agent functions, including Code and Autopilot, will shift to usage-based billing, accompanied by new cost management tools. The app also introduces new features like Office in Copilot and a managed execution platform for AI-created applications.

Hybrid Pricing and Default Expense Controls

The new version of Copilot combines two pricing approaches. A user subscription allows access to chat features, Office integrations, and template selection for a fixed monthly fee. In contrast, all agent-related features will transition to usage-based billing. Cowork, Code, and Autopilot, as well as long-term agents, will require this pricing model. To prevent overspending, usage-based billing is disabled by default, and administrators will be able to set policies and spending caps during deployment. Additionally, Microsoft is grouping Agent 365 tools under the FinOps umbrella for AI: detailed reports will be provided to administrators, and end users will be able to track credit usage and view remaining credits directly within Copilot. Microsoft indicates that pricing will evolve, but the overall cost and return on investment remain unknown, including for Copilot.

Enterprise Targeting and Secure Access to Microsoft 365 Data

The new Copilot environment is primarily designed for enterprise customers already engaged with Microsoft 365, with a focus on Outlook, Teams, and Word, Excel, and PowerPoint documents. Targeted organizations want AI to operate on their data within a secure and controlled framework, without relying on third-party clouds. The interface is the same regardless of account type, but a professional account opens secure and compliant access via the Work IQ APIs to data hosted in Outlook, SharePoint, OneDrive for Business, Dynamics 365, and other Microsoft cloud repositories. During a launch, Jacob Andreou reminded attendees of the existence of a paying consumer base—approximately 90 million—who desire full capabilities in a personal context, while also highlighting recent improvements in Copilot's speed, consistency, and unification.

Unified Features: Home, Office in Copilot, and Today View

The application, now unified for individuals and businesses, receives a major update and continues a rollout that began last month from mobile to desktop. It organizes its capabilities into three tabs: Home, Code, and Autopilot. Home merges the former Chat and Cowork spaces: the first is used for dialogue for drafts and research, while the second manages end-to-end tasks. Jared Spataro emphasizes Office in Copilot, which directly generates editable and collaborative documents, spreadsheets, or presentations within the application. A Today view, described as a proactive command center covering email, calendar, Teams feeds, meetings, and tasks, will not arrive immediately: it will enter private preview in October within Copilot and will also be accessible in Outlook and Teams.

Code in Copilot: Managed Execution and Planned Third-Party Options

Microsoft states that the Code feature relies on the same technology as GitHub Copilot and operates in a secure environment. It is designed to create applications, dashboards, and automations from prompts. The resulting applications run directly in Copilot thanks to Microsoft Copilot Managed Runtime, a tenant-managed platform within Microsoft 365. The company plans to open access to third-party tools and allow usage by professional developers. The launch will soon begin with select customers, with general availability expected in the coming weeks, while Microsoft 365 Premium and Pro subscribers will gain access later this year. In contrast, Anthropic's Claude Code runs on-premises in isolated environments such as containers or virtual machines, while Microsoft favors a cloud infrastructure aimed at regulated sectors that place particular importance on compliance and governance.

Autopilot and Agents: An IT-Manageable "Teammate"

The Autopilot tab accompanies the introduction of agents, a feature that Microsoft previously referred to as Scout. Jacob Andreou considers these agents powerful but "absolutely terrifying" for an IT administrator responsible for the company's posture. The proposed solution is an agent designed as a digital teammate equipped with its memory, computer, and dedicated Outlook and Teams accounts, all managed by IT with permissions and an audit trail, similar to an employee. The highlighted difference is that this agent never sleeps.