Overview
Walk through Microsoft Copilot’s new Cowork pricing model, the WorkIQ feature, model selection options, and what an AI-first mindset looks like in practice.
Key Takeaways
Cowork is no longer free.
As of July 2025, Microsoft Copilot Cowork (the feature that handles multi-step, agentic tasks inside Microsoft 365) is leaving preview and moving to a paid, consumption-based model. If your organization has it enabled through the Frontier program, your admin needs to set up pay-as-you-go billing before the end of June or Cowork will stop working.
How Copilot credits work.
Copilot Cowork runs on a credit system. One credit equals one cent unless you pre-buy in bulk (a 5% discount kicks in after you commit to 300,000 credits on a one-year contract. Reid’s advice: don’t do that yet).
Watch the video to learn why.
You’ll also explore:
- How the credit system works (light, medium, and heavy tasks explained)
- What’s not changing
- Which employees should get Cowork access after the billing switch
- WorkIQ and the new Copilot interface
- Model Council: GPT vs. Claude, in the Researcher agent
- Building an AI-first mindset
Want more business technology insights?
Teal is a managed IT services provider helping organizations get practical value from Microsoft 365 and AI tools. Gar Whaley and Reid Johnston host regular virtual events on what’s changing in the Microsoft stack and how to apply it without getting burned.