Why Microsoft renewal strategies must now include AI consumption management

By Guest contributor |
15 October 2026

Wastage across any product or platform in a business typically runs at 30 per cent, so it’s imperative to optimise purchases, renewals and ongoing management. When it comes to licensing, big discounts lead to over-provisioning, only for the business to get caught out at renewal and teeter on the brink of a fiscal cliff. AI, too, introduces usage-based, token-metered consumption with no ceiling – a second, less visible cliff that no seat count can predict.

The dilemma is no longer just how to rationalise per-seat provisioning and renegotiate licensing terms by pinpointing where value isn’t being achieved. It’s also how to rein in token consumption – and that requires visibility into which teams, agents and models are burning tokens.

Microsoft Copilot Cowork requires an M365 Copilot seat, but the actual work is billed on usage in Copilot Credits, sorted into light, medium and heavy tasks. Cowork…