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On October 14, 2026, Microsoft announced a strategic shift in its enterprise artificial intelligence licensing model by removing the base--subscription prerequisite for Microsoft 365 Copilot. Beginning December 1, 2026, standalone Microsoft 365 Copilot and Microsoft 365 Copilot Business SKUs will be available across all commercial sales channels, including Cloud Solution Provider (CSP) partners, without requiring qualifying prerequisite Microsoft 365 seat licenses. Furthermore, starting December 1, 2026, pay--as--you--go usage--based billing will become the default configuration for new Copilot Business CSP subscriptions to facilitate consumption of modular AI capabilities such as Copilot Cowork and Work IQ APIs. In preparation for the rollout, Microsoft will publish new product and SKU identifiers in its price list preview on November 1, 2026.

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