Microsoft 365 Copilot is being reorganised around three new capabilities, announced on 25 September 2026: Home, a single starting point that combines Chat and Cowork; Code, which lets non-developers build small apps and automations by describing them; and Autopilot, a persistent agent that keeps working when you are not. Alongside the features, Microsoft set out how it will charge: everyday Copilot use stays in the fixed per-user licence, while agent work such as Cowork, Code and Autopilot runs on usage-based billing with Copilot Credits. For a small or medium business on Microsoft 365, the features are still arriving through preview programs, so the decision that matters this quarter is about budgets and rules, not buttons.
What Microsoft announced
The product details are in Microsoft's announcement of the new Copilot, and the commercial model is explained in a companion post, Evolution of the Copilot pricing model.
| Capability | What it is | Availability stated by Microsoft |
|---|---|---|
| Home | The new starting point in the Copilot app, where Chat (quick questions and drafts) and Cowork (delegated tasks that run end to end) sit together | Starts rolling out in the Frontier program in the coming weeks |
| Office in Copilot | Word, Excel and PowerPoint built into Copilot, so it creates or updates a real, editable file that a team can work on together | Announced as part of the new experience |
| Code | Describe an app, tracker, dashboard, automation or workflow in plain language and Copilot builds it, from desktop widgets to cloud-hosted internal apps | Rolling out to Frontier at the end of September, with broad availability in the coming weeks |
| Copilot Managed Runtime | Hosting that runs those apps inside the company's Microsoft 365 environment, governed by IT | In preview |
| Autopilot (previously called Scout) | A cloud-hosted agent you give a name, a role and a goal. It watches channels, follows up on threads and runs recurring work, with its own identity, memory and workspace in your tenant | Expanding to private preview at the end of September |
| Plugin registry | One catalogue of Microsoft, partner and custom plugins that IT can approve and manage centrally | Rolling out now |
Microsoft also previewed two things for later: Today, a personalised view across mail, calendar, Teams and tasks that prepares drafts and proposes schedule changes, entering private preview in October, and an @Copilot capability in Teams that uses the shared context and permissions of a channel or meeting.
The Frontier program is Microsoft's early-access channel for preview AI features. According to Microsoft's Frontier program page, business users need a Microsoft 365 Copilot licence, the organisation has to opt in, and an administrator turns Frontier on in the Microsoft 365 admin center.
Two ways to pay: the licence and the meter
This is the part most likely to affect a small business budget. Microsoft now describes two layers.
- User subscription licence (USL). A fixed price per user per month. It covers Copilot in Chat and across Word, Excel, PowerPoint, Outlook and Teams, plus model selection. An "Auto" setting chooses a model for each request by weighing accuracy, speed and cost. Microsoft says there are no changes to the value customers already have, and that fair-use limits are set so that the vast majority of people never reach them. A heavy user who does reach a limit gets a warning and a choice: switch to Auto at no additional cost, or move to credits.
- Usage-based billing (UBB). Cowork, Code, Autopilot, new advanced experiences in apps such as SharePoint, and the most advanced models run on Copilot Credits. Microsoft says UBB builds on the USL, which is required to use these capabilities.
On control, the pricing post says:
"For enterprise customers, UBB services stay off until an admin creates a spending policy in the Microsoft 365 admin center, and nothing is billed before that."
Administrators can set budgets for the whole tenant and for groups, cap individual users, set alerts when spending reaches a threshold, and choose which model families different groups may use. End users can see their own credit usage and remaining balance inside Copilot. Neither post lists dollar prices or says how the default applies to small business plans, so confirm that with whoever supplies your licences.
What it means for an Australian SME
Cost
A Copilot budget used to be a simple multiplication: users by licence price. It now has a variable part as well. An accounting practice that asks Cowork to assemble a month-end pack for every client, or a builder who sets up an Autopilot agent to chase supplier updates, is buying work by the task. That can be good value, but only if someone sets a limit first and looks at what the credits produced. Decide who holds that budget before the features appear in your tenant.
Privacy and data handling
Autopilot is described as having its own identity and memory and as showing up in Teams, Outlook, chats, channels and documents. Code can build apps that connect to live business data. Both make existing permissions more important: an agent or app that inherits broad access to shared folders will use it. Questions to settle before a pilot:
- Which sites, mailboxes and channels can an agent read, and who approved that?
- Who can see what an agent did, and where is the audit record?
- If a staff member builds an app with Code, who owns it, who can open it and what data does it expose?
- Which plugins are approved, and who reviews a new one before it is added to the registry?
- Does your privacy policy cover AI use? The Office of the Australian Information Commissioner's guidance on commercially available AI products says businesses should update their privacy policies with clear information about their use of AI.
Staff training
Microsoft says learning to build small solutions is "becoming as basic a skill as writing a memo or modeling a budget". The practical point is that the office manager may soon be able to create an app that the business then depends on. Training should cover more than prompts: when a spreadsheet is enough, how to test what was built, how to hand it over when someone leaves, and when to ask for a properly engineered system instead.
Where it fits in everyday operations
Chat and the Office apps remain the everyday tools for drafting, summarising and analysis, inside the fixed licence. Cowork and Autopilot suit repeatable, multi-step work with a clear output, such as preparing a customer briefing or running a supplier review. Code suits small internal tools: a job tracker, a leave calendar, a simple stock dashboard. Anything customers use, anything that handles payments, and anything several teams rely on still deserves proper design, testing and support. Businesses that outsource their IT should ask their provider how these features will be governed as part of managed IT support.
What to do now
- Check your licences. Confirm which users have a Microsoft 365 Copilot licence and whether your plan is eligible for the Frontier preview program.
- Decide on previews. Opting in to Frontier is an administrator decision. If you opt in, start with a small group.
- Write a spending policy before you need one. Set a tenant budget, a cap per user and an alert threshold for Copilot Credits, even if the first figure is a guess.
- Choose the models people can use. Limit the most advanced models to the roles that need them, and leave everyone else on Auto.
- Tidy permissions. Review access to SharePoint sites, Teams and shared mailboxes so agents and apps cannot reach more than they should.
- Set rules for apps built with Code. Record who owns each app, what data it uses and who supports it.
- Review after the pilot. Compare credit usage with what was produced, then widen or narrow access.
Comingwave is a technology company that provides IT consulting, managed IT support and digital transformation services to small and medium businesses. If you would like help setting sensible limits and permissions before these features reach your team, request a free first consultation, and we will reply within one business day.
Key takeaways
- Microsoft announced Home, Code and Autopilot for Copilot on 25 September 2026, arriving first through preview programs.
- Everyday Copilot use stays in the fixed per-user licence, and Microsoft says the value already in that licence does not change.
- Cowork, Code, Autopilot and the most advanced models run on usage-based billing with Copilot Credits.
- Administrators can set budgets, per-user caps, alerts and model access, so a spending policy should come before a rollout.
- Agents and staff-built apps make permissions and ownership rules more important than before.
Frequently asked questions
What are Home, Code and Autopilot in Microsoft 365 Copilot?
Home is the new starting point in the Copilot app that combines Chat and Cowork. Code lets people build small apps, dashboards and automations by describing them. Autopilot, previously called Scout, is a cloud-hosted agent that carries out ongoing work towards a goal you set.
Is the price of the Copilot licence changing?
Microsoft's pricing post says everyday AI stays in the per-user subscription licence and that there are no changes to the value customers already have. It does not list prices, so check current pricing with your licensing provider.
What are Copilot Credits used for?
Copilot Credits are the unit for usage-based billing. Microsoft says Cowork, Code, Autopilot, new advanced experiences in apps such as SharePoint and the most advanced models run on them, on top of the per-user licence.
Can we stop staff from running up a bill?
Microsoft says administrators can set budgets at tenant and group level, cap individual users and set alerts, and that for enterprise customers usage-based services stay off until an administrator creates a spending policy. Confirm how that default applies to your plan.
When will these features be available?
Microsoft says Home and Code start rolling out through its Frontier preview program first, with broad availability of Code in the coming weeks, and Autopilot expanding to private preview. The posts do not give country-specific dates.