MC1222980 – Microsoft 365 Copilot: Pay-as-you-go consumption for the Copilot Retrieval API

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check before: 2026-01-01

Product:

Copilot, Copilot Chat, Entra, Microsoft 365 admin center, Microsoft 365 Copilot, OneDrive, SharePoint

Platform:

Online, World tenant

Status:

Change type:

New feature, User impact, Admin impact

Links:

Details:

Summary:
Microsoft 365 Copilot introduces pay-as-you-go (PAYG) for the Retrieval API, allowing non-Copilot licensed users tenant-level access to SharePoint and connectors under admin control. Rolling out from January to March 2026, it requires at least one Copilot license and explicit admin enablement. User-level data remains restricted.

Details:
[Introduction]
We're adding support for pay-as-you-go (PAYG) consumption for the Microsoft 365 Copilot Retrieval API. This update gives organizations a flexible way to extend Retrieval API access to users without Microsoft 365 Copilot licenses, while keeping admin control over data access and billing. Users with Copilot licenses will continue to be able to access the Retrieval API at no additional cost.
[When this will happen]
Public Preview Release (Worldwide): We will begin rolling out in Preview in late January 2026 and expect to complete by early February 2026.
General Availability (Worldwide): We will begin rolling out in GA in late February 2026 and expect to complete by early March 2026.

Change Category:
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Scope:
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Release Phase:

Created:
2026-01-28

updated:
2026-01-28

Task Type

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Docu to Check

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MS How does it affect me

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MS Preperations

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MS Urgency

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MS workload name

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summary for non-techies**

Microsoft 365 is introducing a "pay-as-you-go" option for its Copilot Retrieval API, allowing organizations to pay based on actual usage rather than a flat fee, enabling non-licensed users to access certain data under admin control while maintaining data security.

Direct effects for Operations**

Access Control Issues
If the PAYG feature is enabled without proper preparation, non-Copilot licensed users may gain unintended access to tenant-level data, leading to potential data breaches or misuse.
   - roles: Admins, Compliance Officers
   - references: https://learn.microsoft.com/microsoft-365-copilot/extensibility/api/ai-services/retrieval/overview, https://learn.microsoft.com/microsoft-365-copilot/extensibility/api/ai-services/retrieval/paygo-retrieval

Increased Support Requests
Without prior communication and training, users may face confusion regarding the new PAYG feature, leading to an increase in helpdesk support requests and user frustration.
   - roles: Helpdesk Staff, End Users
   - references: https://learn.microsoft.com/microsoft-365-copilot/extensibility/api/ai-services/retrieval/overview, https://learn.microsoft.com/microsoft-365-copilot/extensibility/api/ai-services/retrieval/paygo-retrieval

Billing Confusion
Enabling PAYG without clear guidelines may lead to unexpected billing for organizations, as non-Copilot licensed users start consuming resources without prior awareness.
   - roles: Finance Teams, Admins
   - references: https://learn.microsoft.com/microsoft-365-copilot/extensibility/api/ai-services/retrieval/overview, https://learn.microsoft.com/microsoft-365-copilot/extensibility/api/ai-services/retrieval/paygo-retrieval

Configutation Options**

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Opportunities**

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Potentional Risks**

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IT Security**

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explanation for non-techies**

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** AI generated content. This information must be reviewed before use.

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Last updated 1 month ago ago

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