March 10, 2026 Microsoft is introducing a new top-tier Microsoft 365 subscription called E7 that bundles its Copilot artificial intelligence tools with security and identity services. The package will cost $99 per user per month, roughly 65 per cent higher than the $60 E5 plan it replaces for customers upgrading to the new tier.
The new bundle combines several products Microsoft has been selling separately. E7 includes the $30 Copilot AI assistant, $12 Entra identity management tools and a new $15 product called Agent 365, which is designed to help companies manage AI agents used across workplace applications.
The launch reflects Microsoft’s broader strategy of embedding generative AI across its productivity software. The company has invested more than $100 billion over the past year in data centre infrastructure and Nvidia chips needed to run AI models.
Alongside the new subscription tier, Microsoft is introducing a feature called Copilot Cowork. Developed through a partnership with AI model company Anthropic, the tool is designed to automate multi-step workplace tasks such as sending scheduled emails or preparing meeting materials using documents and internal communications.
Copilot Cowork will be released as a research preview this month for customers participating in Microsoft’s Frontier program, which provides early access to experimental AI capabilities.
Microsoft’s commercial leadership says the new pricing tier is designed to drive broader adoption of Copilot across enterprise customers. Judson Althoff, CEO of Microsoft’s commercial business, told CNBC that the company expects the E7 offering to encourage organizations to expand their use of higher-tier subscriptions.
“The majority of our base is E5 now, right?” Althoff said. “And then we’re going through healthy renewal cycles on E5 right now. But E5 was created pre the agentic world.”
The company is increasingly relying on higher-value services to grow revenue from existing customers. Microsoft 365 commercial products and cloud services accounted for about 30 per cent of total company revenue in the most recent quarter, while the number of paid seats for Microsoft 365 subscriptions grew six per cent.
Microsoft previously said it had 15 million paid Copilot seats across Microsoft 365 as of January, representing roughly three per cent of the platform’s commercial user base.
Analysts say bundling AI tools with security and identity management services could simplify adoption for large enterprises managing complex software environments.
