If you're planning to build your own AI assistants (called copilots) using Microsoft 365 Copilot Studio, it's important to understand how the licensing and pricing work. Here's a simple guide to help you get started.
🔑 Types of Licenses
1. Trial License
- Free to use
- Good for testing and learning
- You can’t publish your copilots with this license
2. User License
- Also free, but you need to buy Copilot Credits for it to work
- You can build and publish copilots
- Must be assigned to users through the Microsoft 365 Admin Center
3. Microsoft 365 Copilot License
- Comes with your Microsoft 365 Copilot subscription
- Some copilots (like those used in Teams or SharePoint) don’t use credits
💳 How Pricing Works: Copilot Credits
Copilot Studio uses something called Copilot Credits to measure how much you use the service. Every time your copilot answers a question or performs a task, it uses some credits.
Two Ways to Pay:
1. Prepaid Credit Pack
- $200 per month for 25,000 credits
- Best if you know how much you’ll use
2. Pay-As-You-Go (PAYG)
- $0.01 per credit
- Billed through your Azure account
- Good for unexpected or extra usage
💡 Example:
If your copilots use 30,000 credits in a month:
- First 25,000 credits = covered by the $200 pack
- Extra 5,000 credits = $50 via PAYG
- Total = $250
🛠️ How to Manage It
- Assign licenses in the Microsoft 365 Admin Center
- Track usage and billing in the Power Platform Admin Center
- PAYG billing is handled through Azure
✅ Quick Summary
| License Type | Cost | Can Publish? | Needs Credits? |
|---|---|---|---|
| Trial | Free | ❌ | No |
| User License | Free | ✅ | Yes |
| Microsoft 365 Copilot | Included | ✅ | Sometimes |
comparison between Microsoft 365 Copilot and Copilot Studio to help you decide which one suits your needs better:
| Feature | Microsoft 365 Copilot | Copilot Studio |
|---|---|---|
| Purpose | AI assistant inside Microsoft apps (Word, Excel, Outlook, Teams, etc.) | Build custom AI agents for business processes |
| License Cost | $30/user/month (add-on to M365 E3/E5/Business) | Free user license, but requires Copilot Credits |
| Who Uses It | End users (employees, knowledge workers) | Developers, business analysts, automation teams |
| Use Cases | - Drafting emails - Summarizing meetings - Creating documents - Analyzing data | - Automating workflows - Answering internal queries - Integrating with APIs and data sources |
| Customizability | Limited to Microsoft apps | Highly customizable (flows, plugins, connectors) |
| Data Sources | Microsoft Graph (emails, docs, chats) | Internal systems, SharePoint, Dataverse, APIs |
| Deployment | Built into Microsoft 365 apps | Publish to Teams, websites, Power Apps, etc. |
| Billing Model | Per-user subscription | Credit-based (e.g., $200 for 25,000 credits/month) |
| Best For | Enhancing productivity in daily apps | Building tailored AI solutions for business processes |
🧠 Which One Should You Choose?
-
Choose Microsoft 365 Copilot if you want:
- AI help inside Word, Excel, Outlook, Teams
- A productivity boost for everyday tasks
-
Choose Copilot Studio if you want:
- To build your own AI agents
- To automate specific business processes
- To integrate with custom data sources
Choose Microsoft 365 Copilot if you want:
- AI help inside Word, Excel, Outlook, Teams
- A productivity boost for everyday tasks
Choose Copilot Studio if you want:
- To build your own AI agents
- To automate specific business processes
- To integrate with custom data sources
🚀 Final Thoughts
Microsoft 365 Copilot Studio gives you the tools to build smart AI assistants for your business. With flexible licensing and credit options, you can start small and scale as needed.
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