Microsoft 365 Copilot: Pay-as-you-go consumption for the Copilot Retrieval API

Microsoft 365 Copilot introduces pay-as-you-go (PAYG) for the Retrieval API, allowing non-Copilot licensed users tenant-level access to SharePoint and connectors under admin control. Rolling out from January to March 2026, it requires at least one Copilot license and explicit admin enablement. User-level data remains restricted. We’re adding support for pay-as-you-go (PAYG) consumption for the Microsoft 365 Copilot Retrieval API. This update gives organizations a flexible way to extend Retrieval API access to users without Microsoft 365 Copilot licenses, while keeping admin control over data access and billing. Users with Copilot licenses will continue to be able to access the Retrieval API at no additional cost. When this will happen Public Preview Release (Worldwide): We will begin rolling out in Preview in late January 2026 and expect to complete by early February 2026. General Availability (Worldwide): We will begin rolling out in GA in late February 2026 and expect to complete by early March 2026. How this affects your organization Who is affected: Admins managing Microsoft 365 Copilot services and billing Tenants using or planning to use the Copilot Retrieval API What will happen: A new PAYG option for the Copilot Retrieval API becomes available in the Microsoft 365 admin center under Copilot → Billing & usage → Pay-as-you-go. When enabled by an admin, non-Copilot licensed users can use the Retrieval API to access these tenant-level Microsoft 365 data sources: SharePoint Copilot connectors User-level data sources (for example, OneDrive) will remain unavailable to non-Copilot licensed users. A minimum of one Microsoft 365 Copilot license must be active in the tenant to enable the PAYG feature. The feature is off by default and requires explicit admin configuration. What you can do to prepare Ensure your tenant has at least one Microsoft 365 Copilot license. Decide whether to enable PAYG for: Specific groups (recommended), or All non-Copilot licensed users. Review and update any internal documentation related to Copilot usage or data access controls. If needed, communicate the change to your helpdesk or impacted user groups. Configure the feature in the Microsoft 365 admin center under Copilot → Billing & usage → Pay-as-you-go. Learn more: Overview of the Microsoft […]

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