Forum Discussion
Microsoft 365 Copilot licensing confusion
In the SharePoint Agent preview (ended in October 2025), Microsoft permitted unlicensed users to access SharePoint agents. I guess the reason for it was to enable organizations to evaluate agent functionality and provide feedback before licensing and billing requirements were applied (?).
After the preview period concluded, it now seems that all users are required to have a Microsoft 365 Copilot Add-On license to interact with SharePoint agents. Users with, for example, a Microsoft 365 E3 license can only access the free version of Copilot (Copilot Chat), but do not have interaction privileges with SharePoint agents.
A while ago, one of our CSP partners recommended us to buy a capacity pack and set up pay-as-you-go billing. In their opinion, this would replace the need for the Microsoft 365 Copilot Add-On license. However, we do not want to buy these expensive package unless we know for sure that this is the case.
Can anyone answer the question: Does using a capacity pack and pay-as-you-go billing override user license requirements?
Thank you ❤️
I was able to resolve this issue independently, and can confirm that enabling PAYGO and a capacity pack does allow unlicensed users to access SharePoint Agents.
I followed the guidance provided here: https://learn.microsoft.com/en-au/copilot/microsoft-365/pay-as-you-go/copilot-capacity-packs.
It would be helpful if Microsoft offered clearer information regarding licensing requirements for Copilot and other products. In this instance, while the tutorial enabled me to implement a working solution, some details were ambiguous. Notably, the referenced page states the following at the bottom:
"End-users using Microsoft 365 Copilot Chat or SharePoint agents must have a Microsoft 365 Copilot license to access Copilot features. The capacity pack and pay-as-you-go billing setup affects billing for credit usage, not the user license requirements. Make sure your users are licensed for Microsoft 365 Copilot; the capacity pack covers the extra agent credit costs, not the core Copilot access."
This clarification appears to contradict earlier guidance and may cause confusion for administrators.
4 Replies
I bought a product on Play Store (MS 365 Copilot). My account is registered in Country A, together with my primary payment method. My backup payment method is from Country B. When Google Play Store couldn't deducted my sub from my primary payment method, they used my backup paymnet method. The money was deducted and appears on my play store subs. However, my MS Account does not show any sub. What's frustrating is I'm now being tossed around the two companies. Play store says I should contact MS team (devs of MS 365 Copilot) while MS team doesn't reply to my emails on theire app page on Play Store. I'm now left with no money and no service that I've paid for. Anyone who knows how I can resolve this. I tried Play Store refund and they said my purchase does not qual
I was able to resolve this issue independently, and can confirm that enabling PAYGO and a capacity pack does allow unlicensed users to access SharePoint Agents.
I followed the guidance provided here: https://learn.microsoft.com/en-au/copilot/microsoft-365/pay-as-you-go/copilot-capacity-packs.
It would be helpful if Microsoft offered clearer information regarding licensing requirements for Copilot and other products. In this instance, while the tutorial enabled me to implement a working solution, some details were ambiguous. Notably, the referenced page states the following at the bottom:
"End-users using Microsoft 365 Copilot Chat or SharePoint agents must have a Microsoft 365 Copilot license to access Copilot features. The capacity pack and pay-as-you-go billing setup affects billing for credit usage, not the user license requirements. Make sure your users are licensed for Microsoft 365 Copilot; the capacity pack covers the extra agent credit costs, not the core Copilot access."
This clarification appears to contradict earlier guidance and may cause confusion for administrators.
Thank you for this response. I'm not that technical but I don't think this addresses my challenge. My product is for individuals not business. Also, does it mean that with my current product, I can't use apps like word and excel until I buy the additional license for Copilot capacity pack (whatever that is)? Could it be that I bought the wrong product because all I wanted was an office suite: word, ppt, excel etc.?
This is a great question, many organizations are facing the same confusion after the SharePoint Agent preview ended. From what we’ve seen, capacity packs and pay-as-you-go billing don’t replace the Microsoft 365 Copilot Add-On license requirement.
At Nimus Technologies, we help businesses manage Microsoft 365 licensing and Copilot deployments effectively. Happy to share insights if needed!
