Microsoft Insights: Issue 9
Author: Sonia Older | Date published: 25th Aug, 2026 | Read est: 6 min read
Welcome to Issue 9 of Microsoft Insights
Microsoft has spent much of 2026 giving Copilot more independence, connecting it to business information and introducing new controls around what AI can do.
This month, we're seeing more of what that investment could mean for everyday business operations.
Some of the most interesting developments are happening in sales and customer service, where Microsoft is introducing AI agents that can research prospects, support customer conversations and work alongside existing contact centre systems.
There are also some important changes behind the scenes.
New Copilot billing arrangements are approaching, Microsoft has introduced licensing promotions, and businesses still relying on older Office applications have reached a significant support deadline.
Here's what caught our attention this month.
AI is coming for the contact centre
What's new?
Microsoft has introduced Contact Center Intelligence, a new set of AI capabilities designed to work alongside existing contact centre platforms.
Announced in October and now in public preview, it allows businesses to introduce Microsoft AI and agents into customer service operations without necessarily replacing their current contact centre technology.
The capabilities cover conversational self-service, quality insights and AI-powered actions informed by business information.
For example, a customer contacting a business about an order could potentially interact with an AI agent that understands their request, accesses relevant information and helps resolve the enquiry.
Microsoft is also developing tools that can analyse customer interactions to help businesses understand service quality and identify opportunities for improvement.
The important distinction is that these capabilities are designed to complement existing contact centre investments.
What does it mean for you?
Replacing a contact centre platform can be expensive, disruptive and difficult to justify when the existing technology is otherwise doing its job.
Microsoft's approach could give businesses another route into AI-powered customer experience.
Rather than committing to a wholesale replacement, they may be able to introduce capabilities that improve self-service, support agents and provide better insight into customer interactions.
There are still questions to answer around compatibility, integration and governance, particularly while the technology remains in preview.
But for businesses interested in AI without the disruption of replacing their existing systems, this is a development worth watching.
Copilot is learning how to sell
What's new?
Microsoft has introduced several new AI capabilities aimed at sales and customer service teams.
Among them is the Sales Development Agent, which entered public preview on 8 October.
It's designed to take on some of the repetitive work involved in finding and developing sales opportunities, including researching prospects, personalising outreach, following up and qualifying leads.
Microsoft has also introduced a Service Agent, which brings customer information, knowledge and guidance into Microsoft 365 applications to help employees respond to enquiries and manage follow-up activity.
Meanwhile, new CRM capabilities are bringing customer information directly into Teams, allowing employees to access relevant records and take action without constantly switching between applications.
Microsoft's Sales and Service Skills also became generally available in Copilot and Cowork on 8 October. These allow specialist capabilities from Dynamics 365 to be used across AI-powered workflows.
What does it mean for you?
Think about how much time sales and service teams spend preparing to do their actual jobs.
Researching customers, finding previous conversations, updating records and chasing responses can take up a considerable part of the working day.
These developments could help reduce that administrative burden.
For sales teams, AI could support prospect research and follow-up, leaving employees with more time for conversations and relationship building.
For customer service teams, having relevant customer information available within familiar applications could make it easier to resolve enquiries without repeatedly searching different systems.
Of course, automated outreach and customer interactions still need oversight. Businesses will need to
decide which activities AI can handle independently and where human involvement remains essential.
But these are increasingly practical examples of how AI can support revenue generation and customer experience.
Copilot can now keep costs under control
What's changing?
Microsoft is changing how usage-based billing works for new Microsoft 365 Copilot Business subscriptions purchased through its Cloud Solution Provider programme.
From 1 December 2026, usage-based billing will be enabled by default for eligible new subscriptions.
This will make it easier to access certain AI capabilities that are charged according to consumption, including Copilot Cowork and Work IQ APIs.
Microsoft originally planned to introduce the change in November but has since moved the implementation date to December and has also confirmed a default spending limit of 4,000 Copilot Credits per user per month, which administrators can adjust.
Importantly, this doesn't mean every Copilot interaction will suddenly generate an additional charge. The change relates to eligible usage-based AI experiences, with charges determined by actual consumption.
What does it mean for you?
As AI becomes more capable, understanding what it costs becomes increasingly important.
Traditional Microsoft licensing is relatively straightforward. You purchase a certain number of licences and know what those subscriptions will cost.
Usage-based AI introduces another consideration.
A business might pay for its Copilot licences while also incurring additional charges when employees or agents use certain advanced capabilities.
That makes spending limits, monitoring and internal guidance essential.
If you're planning to expand Copilot usage, it's worth understanding which features are covered by your existing licences and which could generate additional consumption charges, because a little planning now could prevent some unwelcome surprises later.
A new Microsoft 365 E3 offer could make upgrading more attractive
What's new?
Microsoft has introduced a new promotional offer for eligible businesses purchasing Microsoft 365 E3 through CSP.
Available from 27 October 2026 until 30 June 2027, the promotion provides a 30% discount on the net partner price for qualifying new Microsoft 365 E3 subscriptions.
There are some important eligibility conditions - Customers must purchase at least 300 new licences, meet Microsoft's existing licence thresholds and commit to an annual subscription.
The promotion is designed to encourage businesses to move from older or less comprehensive Microsoft environments to a more integrated productivity and security platform.
What does it mean for you?
If your business is already considering a Microsoft 365 upgrade, this could make the numbers more attractive.
Microsoft 365 E3 brings together familiar productivity applications with additional security, identity and device management capabilities.
For businesses managing several separate products or relying on older licensing arrangements, consolidating onto a single platform could simplify administration as well as strengthen security.
However, the promotion won't apply to everyone, and the advertised 30% reduction is a discount on Microsoft's net partner price rather than a guaranteed reduction in your final customer quote.
It's worth checking eligibility and comparing the total cost against your current arrangement before making a decision.
Office 2021 support has officially ended
What's changing?
Microsoft ended support for Office LTSC 2021, Project LTSC 2021 and Visio LTSC 2021 on 13 October 2026.
That means these versions no longer receive security updates, bug fixes or technical support.
The applications won't suddenly stop working, but continuing to use them could expose businesses to increasing security and compatibility risks.
Microsoft is encouraging affected organisations to move to supported Microsoft 365 subscriptions or, where cloud services aren't appropriate, newer supported versions such as Office LTSC 2024.
There's also an AI consideration.
Microsoft Copilot is supported in eligible cloud-backed Microsoft 365 applications, rather than these older perpetual Office installations.
Do you need to do anything?
Yes, if your business still uses any of the affected applications.
Start by identifying where Office, Project or Visio 2021 is installed and whether those applications support any business-critical processes.
From there, you can assess the most appropriate replacement.
For some businesses, moving to Microsoft 365 will provide a straightforward route to supported applications, regular security updates and newer productivity capabilities.
Others may have technical, regulatory or connectivity requirements that make a supported on-premises version more appropriate.
Either way, continuing indefinitely with unsupported software shouldn't be the default.
Security upgrades made more affordable for SMBs
What's new?
Microsoft has introduced a new CSP promotion aimed at making advanced security capabilities more accessible to smaller businesses.
From 1 October, eligible CSP partners can access 7.5% promotional pricing on Microsoft Defender Suite for Business Premium and Microsoft Purview Suite for Business Premium.
The promotion applies to qualifying customers with fewer than 300 seats.
Defender Suite provides additional security capabilities, while Purview Suite focuses on areas such as information protection, compliance and data governance.
The offer is intended to make it easier for businesses already using Microsoft 365 Business Premium to strengthen their security without moving to an enterprise licensing tier.
What does it mean for you?
Many smaller businesses face the same security threats as much larger organisations, but without the same internal resources or budgets.
This creates an opportunity to review whether existing Microsoft security capabilities are being used effectively and whether additional protection is needed.
For example, a business handling sensitive customer information may benefit from stronger data protection and governance, while another may need more advanced tools to detect and respond to cyber threats.
The promotion won't automatically make every security upgrade worthwhile.
But it could reduce the cost of addressing genuine gaps in an existing Microsoft environment.
On your radar: AI Builder licensing is changing
Microsoft is retiring AI Builder capacity add-ons from sale on 1 November 2026.
Businesses with existing subscriptions can continue using their AI Builder credits until the end of their current subscription term.
However, Microsoft is advising partners to disable automatic renewal for affected subscriptions and prepare to move to Copilot Credits where appropriate.
If your business uses AI Builder within Power Platform, it's worth reviewing your existing capacity, renewal dates and future consumption requirements.
This is particularly important for organisations using AI-powered document processing or other automated workflows that depend on AI Builder credits.
That's October
There's a slightly different feel to Microsoft's latest announcements.
Earlier in the year, much of the conversation centred on what Copilot could do. More recently, the focus has moved towards how businesses can put those capabilities to work.
This month, we're seeing that shift in sales, customer service and contact centres, where AI is beginning to support processes that directly affect customer experience and business performance.
But the operational side matters just as much.
New billing arrangements mean AI consumption needs closer attention. Licensing promotions create opportunities to review existing Microsoft investments. And the end of support for older applications is a reminder that keeping technology current remains an important part of maintaining a secure environment.
For businesses, there are three things worth taking away.
- AI is becoming more practical. Microsoft's latest agents and business applications are increasingly focused on specific tasks and measurable outcomes.
- Governance and cost control need to keep pace. As AI takes on more work, businesses need to understand what it can access, what it costs and where human oversight is required.
- The foundations still matter. Getting value from Microsoft's newest technology depends on having the right licences, supported applications and secure systems underneath it.
Need help getting more from Microsoft 365, Copilot or your wider Microsoft environment?
Sonia Older
Brand & Campaign Manager
Sonia Older is the Campaign Manager at Focus Group and a highly experienced copywriter. She boasts over 20 years of experience in content marketing and PR across multiple industries, and is the key driver of content and PR for Focus Group across all UK offices. Away from work, Sonia usually swaps keyboard strokes for ski slopes in the Alps with her family.
