We only have a subset of our users who have Copilot licenses. It seems that just allowing Copilot in the Teams app permission policy causes it to appear at the top of the chat list. As mentioned above, any user without a license will get an error when trying to use it, causing confusing and extra work for us, not to mention questions from upper management. We have an AD group for those who have a license, but unfortunately app permission policies cannot be applied to groups. It is going to be very tedious to add and remove individual users to mirror the licensing group.
Is there a better way? This seems either not completely thought out or a way to sell more Copilot licenses. For us, it's just more confusion and frustration from Microsoft. We are contemplating just turning it off or blocking it in Teams until this works in a better fashion.