Microsoft bills for AI agents and Copilot Studio workloads based on usage. To do this, Microsoft uses so-called Copilot Credits. Organizations can choose from various purchasing models, depending on factors such as scale, usage predictability, and budget management.

Because AI usage can vary significantly, Microsoft offers a Copilot Credit Usage Estimator to provide an indication of expected usage. This calculation serves as a guideline and does not guarantee the final costs.

In this article, we discuss the different models for Microsoft Copilot Credits and when they can be relevant in practice.

1. Pay-as-you-Go (PAYG)

The pay-as-you-go model is intended for organizations that want maximum flexibility and do not wish to purchase fixed capacity in advance. Within this model, only the actually used Copilot Credits are invoiced via Azure billing.

Because no prior commitment is required, PAYG is often used for pilots, proof-of-concepts, and workloads whose usage is difficult to predict in advance. Organizations that deploy AI agents temporarily also frequently opt for this structure.

An additional advantage is that the model remains easily scalable when usage temporarily increases.

When is PAYG interesting?

PAYG is primarily applied when:

  • the expected AI consumption is still unknown;
  • organizations want to test first before capacity is committed;
  • usage fluctuates significantly throughout the year.

Practical example

A marketing team is temporarily using an AI agent during a product campaign. Because the expected usage is difficult to estimate in advance, the organization opts for a flexible PAYG model.

2. Copilot Credit Capacity Packs

For organizations with a more stable usage pattern, Microsoft offers monthly prepaid capacity via Copilot Credit Capacity Packs.

With this, a fixed amount of Copilot Credits is purchased in advance per month. This makes the costs more predictable than with a fully consumption-based model.

Microsoft currently offers capacity packages of 25.000 Copilot Credits per month at a fixed monthly price. Unused credits expire at the end of the month.

Capacity Packs are primarily deployed by organizations that use AI agents structurally and need more control over operational costs.

When are Capacity Packs interesting?

This model may be relevant for organizations that:

  • use AI agents daily;
  • have relatively stable workloads;
  • want to keep monthly AI costs predictable.

Practical example

An HR department uses internal AI assistants for onboarding, HR support, and knowledge queries. Purchasing monthly capacity in advance creates greater predictability in the budget.

3. Copilot Credit Pre-Purchase Plan (P3 / CCCU)

For larger organizations or higher AI volumes, Microsoft offers the Copilot Credit Pre-Purchase Plan (P3). Under this model, Copilot Credit Commit Units (CCCUs) are purchased annually in advance.

Microsoft applies the following ratio in this regard:

  • 1 CCCU = USD 1 retail value
  • 1 CCCU = 100 Copilot Credits

The P3 model is intended for organizations that want to better plan their AI usage in advance while simultaneously taking advantage of volume discounts.

The pre-purchased credits remain flexibly usable throughout the term. If usage exceeds expectations, additional use can usually be settled via pay-as-you-go.

However, it is important to take the validity period into account: unused CCCUs expire after twelve months.

When is P3 interesting?

The P3 model is primarily applied by organizations that:

  • have predictable AI volumes;
  • deploy multiple AI agents simultaneously;
  • looking for lower effective costs per credit.

Practical example

A financial institution uses AI agents for compliance, document analysis, and fraud detection, and therefore purchases a fixed amount of credits in advance annually.

4. Microsoft Agent Pre-Purchase Plan (ACU)

In addition to Copilot-specific models, Microsoft also offers a broader enterprise model through the Microsoft Agent Pre-Purchase Plan. This works with Agent Commit Units (ACUs).

Within this model, the following applies:

  • 1 ACU = USD 1 retail value
  • 1 ACU = 100 credits equivalent

The ACU model is primarily aimed at larger enterprise environments that combine multiple Microsoft AI platforms within a single central AI budget.

Depending on the contract, ACUs can be used for various Microsoft AI services, including:

  • Microsoft Copilot Studio;
  • Azure AI services;
  • Microsoft Fabric;
  • Microsoft Foundry;
  • selected AI platform services within the Microsoft ecosystem.

Under this model as well, unused capacity expires after twelve months.

When is ACU interesting?

The ACU model may be relevant for organizations that:

  • wanting to centrally budget AI;
  • combining multiple Microsoft AI platforms;
  • rolling out enterprise-wide AI strategies.

Practical example

An international organization uses AI agents for both internal processes and customer interaction and opts for a single central annual AI budget via ACU capacity.

Microsoft 365 Copilot and Copilot Credits

Within Microsoft 365 Copilot, partially different licensing terms apply than within Copilot Studio and Azure AI services.

Users with a Microsoft 365 Copilot license have included capabilities for certain agent functionalities within the Microsoft 365 ecosystem. However, this does not automatically mean that all AI agent workloads can be used without additional cost.

Especially with:

  • advanced Copilot Studio scenarios;
  • higher volumes;
  • extensive automation;
  • external AI integrations;

Additional Copilot Credits may still be required.

For organizations, it is therefore important to distinguish between standard Microsoft 365 Copilot functionality and more extensive AI agent implementations.

Tips for managing Copilot Credits costs

A good estimate of expected usage remains important to avoid unexpected costs. To this end, Microsoft offers the Copilot Credit Usage Estimator, which allows organizations to get an indication of expected monthly usage.

In addition, it is wise to carefully consider the balance between flexibility and predictability in advance:

  • PAYG offers maximum flexibility;
  • Capacity Packs ensure more stable monthly costs;
  • P3 and ACU models offer economies of scale at larger volumes.

The expiration dates also deserve attention. Unused credits expire:

  • monthly with Capacity Packs;
  • annually for CCCU and ACU models.

Correct sizing of the expected use therefore remains essential.

Frequently asked questions about Microsoft Copilot Credits

What are Microsoft Copilot Credits?

Copilot Credits are the consumable unit used by Microsoft to bill AI agents and Copilot Studio workloads.

What is the difference between PAYG and prepaid models?

With PAYG, organizations pay exclusively for actual usage. With prepaid models, capacity is purchased in advance at more predictable costs.

Expired unused Copilot Credits?

Yes. With monthly Capacity Packs, credits expire at the end of the month. With CCCU and ACU models, unused credits expire after twelve months.

Are Copilot Credits included with Microsoft 365 Copilot?

Certain functionalities within Microsoft 365 Copilot are included, but additional Copilot Credits may be required for extensive Copilot Studio or AI agent workloads.

Ready to see how Snowflake works?

Microsoft offers multiple models for purchasing Copilot Credits and AI capacity. Which option is most suitable depends on factors such as expected usage, scale, flexibility, and budget predictability.

By gaining insight into expected AI usage in advance, organizations can better determine which model aligns with their technical and financial requirements.

➡️ Would you like insight into the most suitable licensing and consumption models for Microsoft Copilot and AI agents? Contact us for an independent consultation and an analysis of your Microsoft licensing and AI consumption scenario.