New Microsoft 365 E7 Subscription to Bundle Copilot and Agent 365

A premium AI-focused Microsoft 365 tier combining Copilot and advanced governance tools.

Hero approved Microsoft 365

Key Takeaways:

  • Microsoft is reportedly preparing a new top-tier Microsoft 365 E7 plan built around AI and advanced identity capabilities.
  • The bundle is expected to combine Copilot, Agent 365, and expanded governance tools into a single premium offering.
  • A significantly higher price point could force enterprises to rethink licensing, budgeting, and AI adoption strategies.

Microsoft is preparing to introduce a new top-tier Microsoft 365 subscription (reportedly branded as Microsoft 365 E7) in the coming months. The enterprise-focused plan is expected to operate alongside the company’s existing software subscriptions.

Microsoft currently organizes its enterprise offerings into two primary subscription levels (Microsoft 365 E3 and E5). The Microsoft 365 E3 tier provides a standard set of productivity (such as Word, Excel, PowerPoint, and OneDrive storage) and security tools. Meanwhile, Microsoft 365 E5 builds on that foundation by adding more advanced capabilities in areas such as security, compliance, and analytics.

What’s included in Microsoft 365 E7?

According to a new report from Business Insider, this new Microsoft 365 E7 plan will include Microsoft 365 Copilot and Agent 365. This bundle could also come with Microsoft Entra capabilities that are currently not included with the Microsoft 365 E5 subscription. This would position E7 as a comprehensive AI-driven and identity-centric offering.

Microsoft Agent 365 is a management framework designed to help organizations oversee and control AI‑driven “agents” across their environment. It isn’t a standalone product but rather a collection of capabilities drawn from existing Microsoft services, which are all unified to manage how automated agents operate, access data, and interact with enterprise systems. This service supports agents built with Microsoft tools such as Copilot Studio, Microsoft Foundry, the M365 Agents Toolkit, the Agent Framework, and the Agent 365 SDK. It’s currently available in preview under Microsoft’s Frontier program.

Premium pricing and enterprise cost implications

While official pricing has not been confirmed, reports suggest this new plan could carry a significantly higher price point than Microsoft 365 E5, which could potentially approach $99 per user per month. This positioning reflects the inclusion of AI capabilities, agent governance tooling, and expanded security and identity features within a single subscription.

If launched at a premium rate, Microsoft 365 E7 would mark a notable shift in enterprise licensing strategy. Organizations would need to assess whether consolidating AI services, automation oversight, and advanced security controls into one bundle offers sufficient operational value to justify the cost.

For enterprises aggressively pursuing AI-driven workflows, the integrated model may streamline governance and deployment. Others may adopt a more selective approach, which involves combining license tiers or limiting AI-enabled seats to specific departments.