The October 19 start date for usage-based billing (UBB) being switched on by default with Copilot Business purchases has changed. And with this revision of MC1476200, will it be that third time is a charm for everyone understanding what is going on?
On September 21, Microsoft announced that from October 19, new Copilot Business purchases would automatically create a default spending policy for UBB in tenants, and it was later confirmed that this would set a 4,000 Copilot Credit per user per month limit. The October 19 date has now been updated to the later, but less specific, "mid-November", but the scoping of the update has also been radically altered.
Now, whether a new default spending policy gets created will depend not only on a Copilot Business purchases but also whether you have Microsoft 365 Business Premium licenses in your tenant. This combination of licensing will initiate the default spending policy set up from sometime in mid-November, and it appears the original arrangement for CSP purchases will roll out December 1. Tenants only with Business Basic or Standard will follow some time later.
This update also removed the line that was added on October 1, "For existing Microsoft 365 Copilot customers, purchasing a new Copilot Business seat will deploy usage-based billing across all Microsoft 365 Copilot subscriptions in your tenant." This was not in the September 21 version either. For me this is a very important factor as the only way to scope a spending policy is with a group so, unless Microsoft is going to start adding users to new groups in our tenants when we purchase Copilot Business licenses, is there a technical capability that follows this line being edited out? My read is that a Copilot Business purchase will initiate the default spending policy being created and that applying to all users is simply an unstated technical consequence of that update, but more information is needed for clarity.
I'm pleased that this issue is clearly being looked at leading to revisions and timeline changes. However, this type of confusion swirling around what will be a consequential budget change for the SMB segment Copilot users who are probably the most price conscious, feels like a misstep by Microsoft. Many in this category are still asking the question, "Does Copilot deliver value?" rather than "How can we buy more AI?", and while I help SMB leaders navigate these issues every day, there are many others who are struggling to find good answers.
How are you preparing for this update? And how did the conversation go with the IT budget holder when you explained what's changing?
First posted on Linkedin on 10/17/2026 → View Linkedin Post Here