Copilot Chat is free, but no longer unlimited: what changes

Copilot Chat is free with every Microsoft 365 Business plan, and that is not changing. But since 2 November 2026 Microsoft applies a fair use limit to more Copilot Chat features, for everyone without a Copilot licence. Anyone who hits that limit sees a notification in the app and can usually request a licence from their admin with one click. Below you can read what changes, what your staff will see and what to set up as an admin now.

What changes

Microsoft already had a limit on some Copilot Chat features, such as image generation. More features are now being added. This is what Microsoft's announcement of 4 November says:

Microsoft informs admins through the Message Center, under MC1536158 and MC1536163. For almost every SME it has therefore applied since 2 November.

What your staff will see

When someone hits the limit, a notification appears in Copilot Chat saying the feature is not available right now. The notification shows when it will be available again. A response Copilot is writing at that moment is not interrupted.

In most organisations the notification includes a button to request a Copilot licence. That request goes to the admin, who approves or denies it. If staff in your organisation are allowed to buy licences themselves, they may also see a button to buy one.

Important for your help desk: this is not an outage. Microsoft explicitly calls it expected behaviour. How much is possible also varies throughout the day, depending on demand at Microsoft.

How high is the limit?

Microsoft does not publish it, because the limits can change. An admin cannot view or adjust them either. So you cannot raise the limit without a licence, and you cannot see in advance who is going to hit it.

What to set up as an admin now

According to Microsoft no action is required. We still recommend four things.

1. Tell your staff and your help desk. A short message stops people from thinking Copilot is broken. For example: "Since November, Copilot Chat has a usage limit. If you see a notification, try again later, or request a licence through the button if you use Copilot every day."
2. Decide what happens to licence requests. Requests are in the Microsoft 365 admin center under Billing > Licenses, on the Requests tab. That is where you approve or deny them; they are kept for twelve months. You need at least the User Administrator or License Administrator role. If you work with an IT partner, "Connect your request process" lets you show your own text and link, so a request reaches them instead of a list nobody looks at.
3. Turn off self-service purchases. If this is on, an employee can buy a Copilot licence with their own credit card, outside your contract. You turn it off per product in the admin center under Settings > Org settings, Services tab, Self-service trials and purchases: select the Copilot product and choose Do not allow. This requires the Global Administrator role, and it can take up to 72 hours to take effect. Note: new products are set to allow by default.
4. Use the notification as a measuring point. Whoever regularly hits the limit is really using Copilot. That is your shortlist of people for whom a licence makes sense. That way you do not have to guess, and you do not have to give everyone a licence. How that calculation works out is covered in what Microsoft Copilot really costs for an SMB of 20 employees.

When is a Copilot licence worth it?

On Microsoft's Dutch pricing page, Microsoft 365 Copilot Business costs €18.20 per user per month excluding VAT with an annual subscription. Until 31 December 2026 Microsoft charges a promotional price of €15.60 for the first year (checked on 6 November 2026). The licence is only available alongside an eligible Microsoft 365 Business plan, and prices through a partner can differ.

Copilot is not unlimited with a licence either. Anyone who hits the limit there can continue free of charge with an automatically selected model or pay with Copilot Credits. And if you buy new licences through a partner from January 2027, usage billing is switched on by default; you can read about that in the new Microsoft Copilot.

Our advice: do not give everyone a licence at once. Start with the people who hit the limit and check after a month whether they notice the difference in their work.

How we help

We manage Microsoft 365 for SMEs. For this change that means: turning off self-service purchases, setting up licence requests so a person actually looks at them, and deciding together who gets a Copilot licence. If you buy your Copilot licences through us, we also agree the usage limit with you up front. Before you roll out Copilot more widely, clean up permissions first; how that works is explained in switching on Copilot safely.

More about our approach is on Microsoft Copilot and Microsoft 365 for SMEs. Not sure who should get a licence? Book a consultation. You can also call us on 085 013 4500.