Beginning in March 2026, the annual cost of the Microsoft 365 Copilot elevated license will decrease from $420 to $276 per user per year.
For units that previously paused adoption because of price, the new rate may make it a good time to revisit whether deeper Copilot integration fits their work, particularly as Microsoft continues introducing new features throughout 2026.
The University of Iowa continues to support responsible exploration of AI tools that can assist with teaching, research, administration, and everyday work. Microsoft 365 Copilot is one of the university-supported tools designed to work directly within the Microsoft 365 environment many teams already use.
Units may wish to review how Copilot is currently being used and consider whether the lower price changes their approach. It may create an opportunity to expand access to additional staff who regularly work with email drafting, document development, or meeting summaries inside Microsoft 365 applications. Departments considering adding users or adjusting license counts should coordinate with their IT leads to review use cases and plan any changes under the updated pricing.
What this means for current license holders
The new Copilot pricing structure applies to new licenses moving forward, and we are reviewing how this change intersects with current licenses.
Reassessing whether the elevated license fits your work
Lower pricing does not automatically mean the elevated experience is the right fit for every role. The key consideration remains how often someone works directly inside Microsoft 365 applications and whether integrated assistance would meaningfully improve that workflow.
For individuals who spend significant time drafting and revising content in Outlook, Word, Excel, PowerPoint, or Teams, Copilot’s ability to assist within those applications can reduce repetitive work such as organizing drafts, summarizing discussions, or restructuring existing material.
In other situations, especially when the work is exploratory, short-form, or not tied to existing files. Copilot Chat may continue to be sufficient.
Two Copilot experiences at Iowa
At the University of Iowa, the name “Copilot” can refer to two different tools.
Copilot Chat is available to all faculty, staff, and students. It provides drafting, rewriting, summarizing, and brainstorming through a chat interface.
Microsoft 365 Copilot (elevated license) works directly inside Microsoft 365 applications such as Outlook, Teams, Word, Excel, and PowerPoint, helping with drafting, summarizing, and working with existing files and conversations.
Access depends on licensing and account configuration. Seeing a Copilot icon in an application does not necessarily mean the elevated experience is available.
Considering an elevated license
Departments or individuals interested in exploring Microsoft 365 Copilot, or expanding existing access, should begin by contacting their local IT support team or IT Director. They can review use cases, confirm eligibility, and guide the request process.
For more information about university-supported AI tools and guidance on when to use them, visit the AI Tools page on the ITS website. You can also subscribe to the AI at Iowa newsletter for future updates.