Clarification on Microsoft Copilot Studio Pay-As-You-Go Licensing, End User Requirements, and Billing Model

Hi Microsoft Community,

We are currently evaluating Microsoft Copilot Studio for a customer implementation and would appreciate clarification on the licensing and consumption model, particularly for agents deployed using the Pay-As-You-Go option.

We would be grateful if you could confirm the following:

1. End User Licensing Requirements
   • After an agent is developed and deployed through Copilot Studio, do users who access and interact with the agent require individual Microsoft 365 Copilot licenses?
   • If end users do not have Microsoft 365 Copilot licenses, can they still access and use the deployed agent under the Copilot Studio Pay-As-You-Go model?
   • Are there any specific licensing requirements for end users based on the deployment channel (Microsoft Teams, SharePoint, Web, Microsoft 365 Copilot, etc.)?
2. Pay-As-You-Go Deployment Model
   • Can a deployed Copilot Studio agent continue to operate entirely under the Pay-As-You-Go licensing model without purchasing Copilot Credit packs or assigning Microsoft 365 Copilot licenses to each user?
   • Are there any limitations, prerequisites, or recommended licensing considerations for production deployments using Pay-As-You-Go?
3. Copilot Credits Consumption and Billing
   • How is agent usage measured and converted into Copilot Credits?
   • Which activities consume Copilot Credits (for example: generative responses, Graph grounding, agent actions, Power Automate flows, AI tools, voice interactions, etc.)?
   • How are costs calculated and billed under the Pay-As-You-Go model?
   • Are there any scenarios where usage is included at no additional charge for Microsoft 365 Copilot licensed users?
4. Monitoring and Cost Management
   • Can administrators monitor Copilot Credit consumption and costs on a daily basis?
   • Which reporting and analytics capabilities are available within Copilot Studio and the Power Platform Admin Center?
   • Is integration with Azure Cost Management available for tracking and budgeting Pay-As-You-Go consumption?
   • Are there recommended best practices for forecasting and controlling Copilot Studio consumption costs?

We would appreciate any official guidance, documentation references, or licensing recommendations that can help us accurately advise our customer.

Thank you for your assistance.