Summary
Copilot Cowork is now generally available worldwide with GPT-5.5, new plugins, and Microsoft Purview integration. It requires a Microsoft 365 Copilot license and usage-based billing via Copilot Credits, enabled by June 16, 2026. Admins must configure billing, spending controls, and monitor usage to maintain access.
Details
[What and Why]
Starting today, Copilot Cowork is now generally available worldwide (Tier 1 languages). This release includes multi-model capabilities—OpenAI’s GPT-5.5 Thinking, new plugins, updated skill management, updated navigation, Microsoft Purview integration, and support for branded templates and image creation. GPT-5.5 and browser use via Microsoft Edge (default-off, admin-enabled) are available in Frontier.
Copilot Cowork requires both:
- A Microsoft 365 Copilot license to access the experience.
- Usage-based billing enabled via Copilot Credits
Note: The Microsoft 365 Copilot license remains our commitment to delivering broad, everyday AI productivity at a predictable, per-user price. It includes Copilot Chat, Copilot in Office apps and Teams, Work IQ, multi-model, and pre-built agents like Researcher.
To manage usage-based billing, a new Cost Management Dashboard. in the Microsoft 365 admin center enables admins to configure billing, set spending policies, and control spend. Learn more on how to setup and manage here.
To use Copilot Cowork: Admins need to enable usage-based billing starting June 16, 2026.
| Prerequisite | Microsoft 365 Copilot license required |
| Billing | Usage based billing via Copilot Credits; no usage is bundled with the M365 Copilot license |
| Cowork Access |
|
| After July 1 | Access ends without billing configured; no interruption if billing is in place. |
For Frontier active users: Admin action is required before July 1, 2026. Without billing configured, active Frontier users will lose access. Refer to (MC1393468) to learn more.
[Rollout Schedule]
- Worldwide (General Availability - Standard Release): Beginning mid-June 2026 and expected to complete late June 2026
- Worldwide (General Availability - Deferred Release): Beginning mid-July 2026 and expected to complete late June 2026.
- Rollout occurs automatically; visibility depends on eligibility and admin configuration
[Impact on your organization]
Who is affected
- Microsoft 365 Admins
- End users who accessed Copilot Cowork via the Frontier program prior to June 16, 2026
Platforms/Services
- Microsoft 365 Copilot app (web, Windows, macOS, iOS, Android)
- Microsoft 365 admin center
- Microsoft Edge (for browser-based workflows)
- Microsoft Purview
- Copilot plugin ecosystem
What will happen
- Copilot Cowork becomes generally available
- Updated UI and entry point for Copilot Cowork
- Access to Copilot Cowork requires a Microsoft 365 Copilot license and usage-based billing enabled
- If usage-based billing is not enabled, users won't be able to access or use Cowork. Admins can control the discoverability of Copilot Cowork and consumptive features (Copilot Settings> AI experiences enabled by usage-based billing)
- Usage is billed via Copilot Credits
- A new Cost Management dashboard in the Microsoft 365 admin center gives admins visibility and control over billing configuration, spending policies, and usage reporting.
[Action required / Recommendations]
Navigate to the Cost Management Dashboard in the Microsoft 365 admin center and complete the following:1. Enable usage based billing Required for any user to access Copilot Cowork starting June 16, 2026 Without this, Frontier users lose access on July 1, 2026.
2. Setup and configure spending controls
• Estimate spend using Cowork Cost Estimator
• Set hard spending caps at the tenant, group, or user level to prevent overspend
• Scope access to specific services to limit exposure
• Configure budget alerts to receive notifications before spend crosses a defined threshold
3. Choose a purchasing option: pay-as-you-go ($0.01/credit, no commitment) for flexibility or Copilot Credits P3 (annual commitment, lowest per-credit rate) for predictability
4. Monitor usage: Use built-in reporting and insights to track usage trends, identify cost drivers, and stay ahead of overages across your organization.
See managing AI experiences enabled by usage-based billing for step-by-step setup guidance.
Recommended:
- Communicate this change to helpdesk and 6/30 deadline to your end users
- Estimate spend and review which users should have access to Copilot Cowork
- Update internal guidance for Copilot usage and cost governance
Additional resources:
[Compliance considerations]
- This service generates and stores customer data and supports the following capabilities: Purview eDiscovery, Data Retention, Purview Sensitivity Labels, Tenant Restrictions, Token Protection, Audit Logging, Customer Lockbox, Role-Based Access Control, Active-Active Hosting, Third Party Pentest Report, Customer Key, Data Export Capability, Incident Notification, Service Level Agreement.
- This service supports: Data Residency (Data At Rest).
- This service respects EU Data Boundary commitments.
- This service provides a method of communication and supports the following capabilities: Information Barriers, Purview Communication Compliance.
- This service provides a method of communicating with generative AI and supports the following capabilities: Purview Communication Compliance.
- Customer administrators can control user access to this service using the following interfaces: Licensing, Admin center UI, PowerShell Cmdlet, Admins have user/group granularity for controlling access to the service, Users have opt-in or opt-out options for use of the service.
Change History
No change history available
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