Microsoft introduces usage-based billing for AI workplace assistant

microsoft ai workplace assistant, microsoft, microsoft copilot, microsoft ai assistant

Microsoft has introduced a usage-based billing policy for its AI workplace assistant.

The company has announced this major change after unveiling the Copilot Cowork AI agent.

The new method will follow a pay-as-you-go model for the latest Microsoft artificial intelligence (AI) workplace assistant.

Copilot Coword AI agent is designed to carry out office tasks independently, including drafting documents, creating spreadsheets and managing emails.

Unlike traditional Microsoft software subscriptions, customers will now be billed according to how much computing power the AI agent uses when performing tasks.

Users will still require a Microsoft 365 Copilot subscription, but each AI-driven task will incur an additional charge.

The company says the change reflects the growing cost of running advanced AI systems, which require significantly more computing resources than conventional software services.

Copilot Cowork is part of a new generation of so-called “agentic AI” tools, which can complete assignments on behalf of users with minimal supervision.

Microsoft says the assistant is capable of analysing large volumes of information, preparing meeting briefings and carrying out complex administrative work over extended periods.

One customer reportedly used the tool to compare nearly 4,000 documents within a few hours, while others have used it to compile information from emails, calendars and internal records.

Charles Lamanna, Microsoft’s executive vice-president for Copilot and agents, compared the new pricing approach to paying for fuel at a petrol station.

He said a single fixed licence no longer reflected the wide variation in computing resources consumed by different users and tasks.

The change marks a significant departure from Microsoft’s long-standing subscription model, which has largely remained unchanged for around two decades.

To prevent unexpected costs, the company says the AI service will be disabled by default, and organisations will be able to set spending limits for individual employees, teams or departments.

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