Microsoft Copilot Cost Management: September Updates

September 2026 updates to Microsoft Copilot Cost Management introduce auto-application of new services to spending policies, user spending alerts, expanded and enhanced consumption reporting, custom approval workflows, and improved policy health guidance. Admins should review policies, configure notifications, and familiarize with new reporting features. What and why: We’re rolling out several enhancements to Cost Management and Copilot Credits governance to simplify policy administration, improve consumption visibility, and provide more flexible spending controls. Rollout schedule: These updates will begin rolling out in early September 2026. Impact on your organization: Auto-apply new services to spending policies Spending policies can now automatically apply to newly released UBB Copilot services and agents. The Auto-apply new services setting is enabled by default for all policies, helping ensure governance remains in place as new services become available. Important: The Auto-apply new services setting is enabled by default for all spending policies. As new services and agents become available, they will automatically inherit policy coverage. Admin action: Review existing policies and disable the setting where future services should not automatically inherit policy coverage. User limit threshold email alerts Administrators can now configure email notifications that alert admins as users approach their spending limits Admin action: Configure threshold percentages and enable notifications for applicable policies Expanded access to consumption reporting Consumption dashboards are now available to additional read-only roles, including AI Reader, Global Reader, and License Administrator, providing broader visibility into spending and usage trends. No Admin action needed. Enhanced consumption reporting New reporting capabilities provide: Consumption visibility across Prepaid (P3) and Pay-as-you-Go (PayG) credit usage. Capacity pack consumption breakdowns across Microsoft Admin Center (MAC) and Power Platform Admin Center (PPAC). Admin action: Review updated dashboards and reporting processes. Policy-level reporting Consumption dashboards now include a dedicated policy view, enabling administrators to analyze usage and spending by spending policy. No Admin action needed. Custom approval policies for Cowork credit requests Administrators can create custom request policies to route Cowork credit requests, and future supported service requests, to alternate approval workflows. Admin action: If desired, configure approval routing through the new Request Policies tab in the Credit Requests experience. […]

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