497417 – Microsoft 365 admin center: M365 Copilot Billing and usage – Budget limits

Product:

Copilot, Microsoft 365 admin center, SharePoint

Platform:

Web, World tenant

Status:

Launched

Change type:

Links:

MC1122160

Details:

Admins can set up budget limits for Copilot Pay-as-you-go by defining billing policies scoped to departments or groups. These policies can be assigned to specific Copilot services, such as M365 Copilot Chat or SharePoint-based agents, and configured with budget thresholds and alerting rules. Email notification alerts (soft alerts) are supported, enabling proactive cost control. #copilotcontrolsystem

Change Category:
XXXXXXX ... free basic plan only

Scope:
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Release Phase:
General Availability

Created:
2025-06-27

updated:
2025-09-11

Docu to Check

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MS workload name

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summary for non-techies**

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Direct effects for Operations**

Please, look at the most relevant linked item for details

explanation for non-techies**

In the Microsoft 365 admin center, there's a new feature that allows administrators to manage and control costs associated with using M365 Copilot services. Think of it like setting a spending limit on a company credit card. Just as you might set a budget for different departments or projects to ensure spending doesn't get out of hand, the admin center lets you set budget limits for different Copilot services.

Admins can create billing policies that apply to specific departments or groups within the organization. These policies can be tailored to different Copilot services, such as M365 Copilot Chat or SharePoint-based agents. It's similar to how a company might allocate a specific budget for marketing and a different one for research and development. Each department or group can have its own spending limit, which helps in managing the overall budget more effectively.

Additionally, these policies can include budget thresholds and alerting rules. This is akin to setting up notifications on your bank account that alert you when your balance drops below a certain amount. In this case, email notifications, known as soft alerts, can be set up to inform administrators when spending is approaching the defined limits. This proactive approach helps in keeping costs under control and prevents unexpected expenses.

Overall, this feature provides a structured way to manage and monitor the usage of Copilot services, ensuring that spending aligns with the organization's financial goals.