How Much Does Your Chatbot Cost? Demystifying Copilot Studio Licensing Costs

Build chatbots (copilots) for any situation with Microsoft Copilot Studio. This easy-to-use platform lets you design, test, and deploy chatbots using natural language or a graphical interface. Whether you need a customer service helper for your store or an internal tool for your team, Copilot Studio can create the perfect chatbot for you.

To create and manage copilots with Copilot Studio, you need:

  • A license for each user, also known as a per user license (or Copilot Studio User License), should be assigned to individual users who need access to create and manage copilots.
  • A license for your organization, also known as a tenant license (or Copilot Studio), should be acquired by the tenant administrator. This license cannot be assigned to individual users.

Note: Users of your copilots don’t need a special license. After you publish your copilot, anyone who can access the published copilot can interact with it.

Licensing overview

Copilot Studio capabilities are licensed via capacity packs, (1 capacity pack = 25,000 messages/month). For additional capacity, add more capacity packs.

Billed Messages

Copilot Studio charges by the number of “billed messages” you use. A billed message counts each time you ask your copilot a question or give it a request that triggers a response or action from it.

Message Consumption rates

• Regular (Non-generative AI) = 1 message

• Generative AI (Gen AI) answers over your data = 2 messages

Examples

a) User asks copilot when a store is open, and copilot replies with store hours = 1 billed message

b) Copilot proactively greets the user on a website = 1 billed message

c) User asks copilot for store hours for the upcoming holiday, copilot responds using GenAnswers

= 2 billed messages

Customers can use a mix of Regular and Generative AI messages.

Copilot Studio Features summary:

Copilot Studio License Cost:

  • $200 per tenant per month
  • Included capacity of 25,000 messages per tenant per month
  • Purchase additional licenses for more capacity

Copilot Studio per User licenses

  • A $0 SKU is required for all users who will author copilots

Capacity enforcement

The Copilot Studio capacity you purchase is applied monthly, and any unused messages will not be rolled over to the next month. Microsoft understands that occasional spikes in message usage can happen. However, for customers who consistently exceed their purchased Copilot Studio message limit, upgrading your plan is necessary to stay compliant with Microsoft’s terms.

Copilot Studio in Copilot for Microsoft 365

Licensed Copilot Studio in Copilot for Microsoft 365 users can create, manage and publish plugins from Copilot Studio to Copilot for Microsoft 365.

Microsoft Copilot Studio for Teams use rights

Microsoft Copilot Studio for Teams lets you build and deploy your own chatbots directly within Teams, if you have certain Microsoft 365/Office 365 licenses. These chatbots can leverage the power of Dataverse for Teams for added functionality.

Dataverse capacity

The included Dataverse capacity for Copilot Studio is shown in the following table:

Buy a Copilot Studio Tenant license

Purchase licenses for your organization by going to the Microsoft 365 admin center. You’ll need to sign in with an admin account to buy licenses.

1.    Go to the Microsoft 365 admin center and sign in with your administrator account.

2.    On the side pane, expand the Billing menu, and then select Purchase services.

3.    Search for Copilot Studio, and complete the checkout process.

Acquire user licenses

1.    After you’ve purchased a Copilot Studio license from the Microsoft 365 admin center, you need to purchase user licenses to give users access to the product. In the Microsoft 365 admin center, go to Billing, and then select Purchase services.

2.    Scroll down to the Add-ons section.

3.    Look for Copilot Studio User License. Select the number of licenses you need, and complete the checkout process.

Important: A Copilot Studio User License ($0) is required for each user authoring bots with Copilot Studio. You can only assign the Copilot Studio User License to specific users. You don’t need to assign the Copilot Studio license.

If you purchase a Copilot Studio license through volume licensing or any channel other than the Microsoft 365 admin center, you need to acquire both a tenant license and a user licenses through that channel, preferably as part of a single transaction.

About the Author

Khurram Hafeez

MVP | M365 Copilot, M365 migrations, Active Directory deployments, MS Exchange deployments & migrations, Azure IaaS deployments & Migrations, Microsoft CSP Licensing, Technical Content Reviewer

Super Early Bird
Reference:

Hafeez, K (2025). How Much Does Your Chatbot Cost? Demystifying Copilot Studio Licensing Costs. Available at: How Much Does Your Chatbot Cost? Demystifying Copilot Studio Licensing Costs | LinkedIn [Accessed: 27th March 2025].

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