Start with Your Strategic Goal
Your primary objective dictates your licensing path. Are you enhancing internal workflows or building for the world? This initial decision is the most critical one you'll make.
Internal Productivity
Empower employees to automate tasks and customize their Microsoft 365 experience within a secure, predictable ecosystem.
Your Path: M365 Copilot License
External & Advanced Use
Build agents for any channel—public websites, mobile apps, and autonomous processes—with maximum flexibility.
Your Path: Standalone License
The Three Layers of Licensing
Copilot Studio's capabilities are unlocked through a layered approach, starting with a security foundation and building up to specific product licenses.
Layer 1: M365 E5 (The Foundation)
This is the **governance prerequisite**, not a product license. E5 provides the essential security bedrock (via Microsoft Purview) for a safe AI deployment, plus limited, Teams-only classic bot building.
Layer 2: M365 Copilot License
The primary path for **internal use**. At a predictable per-user cost, it unlocks agent creation but is restricted to the M365 ecosystem. Most core interactions are zero-rated, encouraging broad adoption.
Layer 3: Standalone License
The path for **maximum flexibility**. Licensed via consumption (Message Packs or PAYG), it allows publishing to any channel. This model is powerful but requires strict financial governance.
The Cost of a Conversation
Under the Standalone (Message Pack or PAYG) model, not all interactions are equal. A "message" is a unit of computational effort, and costs can vary by 100x depending on the agent's action. This makes agent design a critical factor in budget management.
M365 Copilot Path: Predictable Costs
The M365 license offers a "zero-rated" model for core interactions, meaning they don't consume messages for licensed users. This encourages wide adoption for internal tools without fear of runaway costs. However, be aware that advanced features like Agent Flows and AI Tools are always metered and will consume from a standalone capacity if used.
The Recommended Path: A Hybrid Strategy
For most large enterprises, the optimal approach is a hybrid model managed by a central Center of Excellence (CoE). This strategy balances broad innovation with strict governance, empowering the entire organization while controlling financial risk.
AI Center of Excellence (CoE)
Sets strategy, governance, and manages high-risk/high-reward projects.
Citizen Developer Path
Business users building internal productivity agents.
Licensing Model
Microsoft 365 Copilot License
Predictable Cost
Use Cases
HR Bots, IT Helpdesks, Project Assistants (within M365)
Professional Developer Path
CoE/IT building strategic, external, or complex agents.
Licensing Model
Standalone (Message Packs / PAYG)
Variable Cost
Use Cases
Public Support Agents, Autonomous Processes, Mobile App Bots