Assign your Microsoft 365 Copilot licenses

• 3 minutes

Microsoft 365 Copilot is available as an add-on product to select Microsoft 365 subscription plans for commercial customers. With eligible Microsoft 365 plans, enabling Microsoft 365 Copilot is as easy as assigning licenses to selected users. To enable Microsoft 365 Copilot, an organization must assign appropriate Microsoft 365 Copilot licenses to employee accounts.

Eligible plans

Microsoft 365 Copilot is currently available as an add-on to customers with the following subscription plans:

• Microsoft 365 E3 or E5
• Microsoft 365 Business Standard
• Microsoft 365 Business Premium

Organizations should review their existing subscriptions and determine which plans are eligible for Microsoft 365 Copilot capabilities and whether any users must be upgraded to qualified plans.

Assign Microsoft 365 Copilot licenses

Once an organization has its prerequisites in place and its data permissions assigned, it should then assign Microsoft 365 Copilot licenses to its users.

You can assign Microsoft 365 Copilot licenses from the Microsoft 365 Copilot setup wizard, or you can use the Microsoft 365 admin center or other license assignment approaches, just as you would for any other Microsoft 365 service.

To assign Microsoft 365 Copilot licenses through the Microsoft 365 admin center, complete the following steps:

1. Access the Microsoft 365 admin center and go to Users, then Active Users.
2. Select the users you want to enable with Microsoft 365 Copilot.
3. Select Licenses and Apps and add the relevant Microsoft 365 license.
4. Select Microsoft 365 Copilot under Apps to turn on the license.
5. Select Save to apply licenses.

You can also access license management in the Microsoft 365 admin center by navigating to Billing and then Licenses. You can also assign licenses with PowerShell if that is preferred.

License management

Organizations should consider implementing the following best practices for managing their Microsoft 365 Copilot licenses:

• Review Microsoft 365 Copilot usage data and trends frequently to optimize number of licenses. Microsoft 365 usage reports show how people in your organization are using Microsoft 365 services. Run usage reports in the Microsoft 365 admin center to see which users are actively using Microsoft 365 Copilot within their Office apps. Organizations should identify inactive assigned licenses they can revoke and allocate to other productive users. Regularly review trends to right-size licenses. For example, if 10% of assigned Microsoft 365 Copilot licenses show minimal usage, consider reassigning those licenses to high-potential candidates. For more information, see Microsoft 365 Copilot usage reports.
• Remind users to use Microsoft 365 Copilot to maximize value from licenses. Send regular tips on taking advantage of Microsoft 365 Copilot in Office apps through email campaigns or internal promotions. Offer to reassign unused licenses if adoption is low. For example, an email newsletter can showcase Microsoft 365 Copilot use cases and productivity gains to spur adoption. Doing so maximizes the value derived from assigned licenses. Administrators should also complement their Microsoft 365 Copilot licensing rollout with training programs that teach employees how to optimize Microsoft 365 Copilot features. Garner executive sponsorship to encourage adoption. Send regular communications highlighting Microsoft 365 Copilot’s capabilities and celebrate early successes. Evangelizing the use of Microsoft 365 Copilot is key to driving adoption and realizing ROI from your AI investments.
• Monitor adoption and usage of Microsoft 365 Copilot licenses. Monitor adoption and usage of Microsoft 365 Copilot licenses over time through auditing tools like Microsoft 365 usage analytics. Doing so helps ensure that employees use Microsoft 365 Copilot capabilities in line with organizational policies and in compliance with Microsoft’s license terms. Administrators should proactively adjust assignments if usage is lower than expected. Once administrators assign Microsoft 365 Copilot licenses, they should configure appropriate policies and permissions around usage. For example, restrict external sharing of Microsoft 365 Copilot outputs, limit the number of monthly interactions for specific users, disable certain Microsoft 365 Copilot capabilities as needed, and implement appropriate security controls tailored to your users and environment. Thoughtful policy configuration further optimizes Microsoft 365 Copilot’s value.

Keep in mind that administrators can only assign Microsoft 365 Copilot licenses to individual user accounts, or groups of individual user accounts. Administrators can't assign Microsoft 365 Copilot licenses to distribution lists, shared mailboxes, or other entities - only individual users. As a best practice, administrators should carefully manage the number of licenses allocated.

Proactively managing your Microsoft 365 Copilot licenses ensures you invest in and empower the right roles to boost productivity. Follow usage trends and adopt change management practices to drive adoption and continually optimize your Microsoft 365 Copilot license investment.