M365 Copilot Cowork is GA

One of this week’s major announcements is that Copilot Cowork, previously in preview for the past few months as a Frontier capability, is now generally available for all tenants.

What is Copilot Cowork

If you are not familiar with Copilot Cowork, it moves users beyond simple prompts and responses by enabling them to delegate long-running, multi-step work that progresses over time. It uses Microsoft Work IQ to understand organizational context across email, meetings, chats, files, and other sources, then creates a plan, reasons across tools, and executes tasks with visible progress. Users remain in control and can review, pause, stop, or redirect actions at any point. Unlike traditional chat-based AI, Cowork is designed for agentic execution, allowing Copilot to coordinate work across multiple applications. Cowork also supports a multi-model design, enabling the best model to be used for the work at hand. Today, Copilot Cowork can leverage Opus 4.8, Sonnet 4.6, and GPT 5.5, with Cowork 1 coming soon.

One important point to note is that Cowork has a different pricing model. Customers must first have a Microsoft 365 Copilot license, and Cowork usage is then billed based on the tasks users run. In other words, Cowork can add costs beyond the per-user monthly Microsoft 365 Copilot license. Billing is usage-based, denominated in Copilot Credits, and task pricing is calculated from four inputs: model use, context retrieval, tool calls, and runtime.

If that seems a little confusing, here are some good examples of how to put that in context.  Below are three of the most common patterns that have been observed.

Copilot Cowork Pricing

Customers can use built-in controls to manage Copilot Credit usage. They can define who has access to Cowork, set spending limits at the tenant, group, or user level, and allocate more credits to users who are expected to use Cowork heavily. Cowork is off by default, and administrators can configure usage alerts, approve requests for additional credits, and use reporting to monitor consumption and adjust policies over time.

There are two payment options for Copilot Credits. Pay-as-you-go pricing is $0.01 per Copilot Credit, while P3 lets customers purchase credits in volume at a discounted rate.

Reference: https://www.microsoft.com/en-us/microsoft-365/blog/2026/06/16/copilot-cowork-is-now-generally-available/