Deciphering Copilot Studio Licensing

• The licensing model for Copilot Studio has been in flux with changes arriving regularly throughout 2025.
• Agents built with Copilot Studio employ a pay-as-you-go pricing scheme, but other available licensing options could cut costs.
• Customers should understand agent behaviors, use the Microsoft estimator tool, and monitor agent usage to help contain costs.
• Some agent usage is included with Microsoft 365 Copilot licenses.

Copilot Studio is a component of the Power Platform set of services, which are a part of the Microsoft 365 (M365) ecosystem. These services, which also include Power Apps, Power Automate, Dataverse, and others, focus on simplifying line-of-business (LOB) processes that access and modify organizational data. Copilot Studio allows the creation of agents without requiring expensive developer resources.

Agents perform tasks within focused domains and knowledge sources, such as working with internal LOB apps and retrieving data from specific documents and databases.