A report published October 1, 2026, says Microsoft plans to make usage-based billing (UBB) the default for new Microsoft 365 Copilot Business licenses purchased through the Cloud Solution Provider (CSP) channel starting November 2, 2026. CSP is Microsoft's partner sales channel. The reported change concerns new CSP purchases, while Microsoft's user subscription license (USL) remains the fixed-price basis for everyday AI.
The reported CSP billing schedule
The scheduled change applies to new Microsoft 365 Copilot Business licenses purchased through CSP, according to the October 1 report. It does not describe a change for every Copilot license.
Subscription billing and usage billing serve different roles
No: UBB does not replace the regular user subscription. Microsoft describes the USL as the fixed-price foundation for everyday AI, while UBB applies to selected advanced experiences and charges for usage through Copilot Credits. UBB experiences also require a USL.
| Billing model | Typical scope | Billing basis and requirements |
| User Subscription License (USL) | Everyday AI work | Fixed-price user subscription |
| Usage-Based Billing (UBB) | Selected advanced AI experiences | Copilot Credits consumed by eligible experiences; requires a USL and an administrator billing policy |
Microsoft lists Copilot Cowork, Code, Autopilots, some agentic SharePoint experiences, and newer frontier models as examples of experiences that can use UBB.
Administrators must set up a billing policy
Microsoft says an administrator must establish a billing policy before users can access experiences that require UBB. For CSP partners and customer administrators, the reported default for new licenses adds a billing setup to manage alongside the user subscription and the policy required for UBB access.
