How much Copilot Chat Agents Cost? PAYG vs. Message Package

Key insights

• Microsoft Copilot Chat Agents offer two pricing models: Pay-As-You-Go (PAYG) and Message Packages.


• Pay-As-You-Go (PAYG) Model:
  • Cost per message is $0.01.
  • Billed based on actual usage, ideal for variable or unpredictable interactions.


• Message Packages Model:
  • Prepaid bundles of 25,000 messages.
  • $200 per month, costing $0.008 per message.
  • Suits organizations with consistent and predictable usage.


• Message Consumption Rates: The number of messages used depends on the agent’s features:
  • Classic Answers: 1 message per response.
  • Generative Answers: 2 messages per response.
  • Tenant Graph Grounding: 30 messages per retrieval.
  • Autonomous Actions: 25 messages per action.


• An example scenario shows an agent using 4,500 messages in a day would cost $45 under the PAYG model for delivering 500 classic answers and 2,000 generative answers.


• Choosing Between Models: Organizations should select between PAYG and Message Packages based on their specific usage patterns and budget needs.

Introduction to Copilot Chat Agents Pricing

The YouTube video by Szymon Bochniak, titled "How much Copilot Chat Agents Cost? PAYG vs. Message Package," delves into the intricacies of pricing models for Microsoft's Copilot Chat Agents. Understanding these models is crucial for businesses that rely on AI-driven solutions for customer interaction and support. The video provides a comprehensive overview of the two main pricing models: Pay-As-You-Go (PAYG) and Message Packages. Each model has its own advantages and considerations, depending on an organization's specific needs and usage patterns.

Understanding the Pay-As-You-Go (PAYG) Model

The PAYG model is designed for organizations with variable or unpredictable interactions with their AI agents. Under this model, businesses are charged based on actual usage, with a cost of $0.01 per message. This flexibility allows companies to scale their operations without committing to a fixed monthly fee. However, the unpredictability of costs can be a challenge for budget planning. For instance, if an organization experiences a sudden spike in customer inquiries, their expenses could increase unexpectedly. Therefore, while PAYG offers flexibility, it requires careful monitoring of usage patterns to avoid budget overruns.

Exploring Message Packages

In contrast to PAYG, the Message Packages model offers a more predictable billing structure. Organizations can purchase prepaid bundles of 25,000 messages for $200 per month, which translates to $0.008 per message. This model is ideal for businesses with consistent and predictable agent usage. By opting for Message Packages, companies can benefit from a slight discount compared to the PAYG model. However, this approach requires a clear understanding of expected message volumes to ensure that the prepaid bundles align with actual usage. If an organization underestimates its needs, it may end up purchasing additional packages, potentially negating the cost benefits.

Message Consumption Rates and Their Impact

The number of messages consumed by an AI agent depends on the type of actions it performs. For example:

• Classic Answers consume 1 message per response.
• Generative Answers consume 2 messages per response.
• Tenant Graph Grounding consumes 30 messages per knowledge retrieval.
• Autonomous Actions consume 25 messages per action.

These consumption rates highlight the importance of understanding the specific features and capabilities of the AI agents in use. For example, an agent providing 500 classic answers and 2,000 generative answers in a day would consume 4,500 messages, costing $45 under the PAYG model. This example illustrates how quickly costs can accumulate, emphasizing the need for strategic planning when selecting a pricing model.

Configuring the PAYG Billing Model

For organizations opting for the PAYG model, configuring the billing system is a crucial step. This involves setting up monitoring tools to track message usage in real-time, allowing businesses to adjust their strategies as needed. Additionally, organizations should establish thresholds and alerts to prevent unexpected expenses. By proactively managing their PAYG billing, companies can maintain control over their budgets while benefiting from the flexibility of this model. However, this approach requires ongoing attention and resources to ensure that usage aligns with financial expectations.

Conclusion: Choosing the Right Model for Your Organization

Ultimately, the decision between PAYG and Message Packages depends on an organization's specific usage patterns and budget considerations. PAYG offers flexibility and scalability, making it suitable for businesses with fluctuating demand. On the other hand, Message Packages provide cost predictability and potential savings for organizations with stable, predictable usage. By carefully evaluating their needs and analyzing historical data, businesses can make informed decisions about which pricing model best suits their operational goals. As AI technology continues to evolve, staying informed about pricing structures will be key to maximizing the value of Copilot Chat Agents.

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