Microsoft Offers Copilot Discounts of Up to 50% as It Prepares AI Super App: Report

Microsoft is offering discounts of up to 50% on its Copilot artificial intelligence software for large corporate customers, The Information reported. The discounts are tied to large seat commitments and additional usage-based payments for certain features, as Microsoft prepares to consolidate its Copilot experiences into a single application.

Microsoft is reportedly authorising discounts ranging from 30–50% for corporate customers that commit to large numbers of Copilot seats and additional usage-based payments. The discounts could begin as soon as October, according to a person with direct knowledge of the change cited by the publication.

The report said the discount could reach roughly 30% for customers with more than 1,000 Copilot seats, rising to 50% for customers with more than 10,000 seats. The reported discounts apply to Copilot subscriptions rather than representing a universal reduction in Microsoft’s standard pricing.

Shay Boloor, an analyst at The Futurum Group, also highlighted the development in a post on X that Microsoft was cutting Copilot pricing by about 40% for large enterprise customers while preparing a new Copilot ‘super app’ combining coding tools and AI agents.

Microsoft has separately confirmed plans to consolidate its Copilot experiences. During Microsoft’s fiscal 2026 fourth-quarter earnings call, Chief Executive Officer Satya Nadella said Copilot’s chat, Cowork, Autopilot and Code experiences would come together in one ‘super app’ spanning consumer and commercial users.

“This is a major step forward,” Nadella said, adding that Microsoft would share more details.

Microsoft said Copilot had more than 30 million paid Microsoft 365 seats at the end of its fiscal fourth quarter. The company also reported that conversations per user had nearly doubled year over year and that average weekly engagement was on par with Outlook and Teams.

The reported pricing changes come as Microsoft moves Copilot beyond a purely per-seat licensing model. During the earnings call, Nadella described the company’s model as “seat plus usage”, while Microsoft said it was evolving its business model beyond per-seat licensing.

Microsoft has announced that usage-based billing will become the default for new Microsoft 365 Copilot Business licenses purchased through its Cloud Solution Provider channel starting November 2. 

The model covers eligible usage-based experiences including Copilot Cowork, Work IQ APIs and GitHub Copilot Harness. Microsoft said pay-as-you-go will be the default billing configuration for the new CSP purchases.

Microsoft is reportedly pursuing the discounts as it expands Copilot’s seat-based business with usage-based revenue from newer AI features.