Copilot model templates limit access to costly models

Key insights

• Model templates are in preview in the Microsoft 365 admin center's Copilot Cost management settings.
• A model template specifies which models users covered by an associated spending policy can select.
• Spending policies can target specific groups and set a monthly Copilot credit limit.
• A template cannot be deleted while it is associated with a spending policy.

Microsoft 365 Copilot model templates let administrators limit which AI models users can select, tying model access to a spending policy. The controls matter to Microsoft 365 admins and teams managing Copilot access and usage-based costs. Steve Corey demonstrates how to create templates and connect them to spending policies in a YouTube walkthrough.

What's new

Model templates add a way to manage model choices alongside Copilot spending policies in the Microsoft 365 admin center. A template lists the models available to users covered by a linked policy. The administrator can use that arrangement to give a broad user group a limited model selection while creating a separate policy and template for a team with different needs.

In the demonstration, Cost management includes tabs for spending policies and model templates. Corey creates a template with a restricted model selection, then associates it with an existing policy. He also creates a separate spending policy for a specific group and configures a different model template as part of that process.

The controls complement, rather than replace, spending policies. A policy governs access to Copilot features and can include a monthly credit limit; the template determines which models are available under that policy. This makes it possible to manage model choice and other policy settings together, rather than relying on users to choose a less expensive model on their own.

Who it is for and what you need

The feature is aimed at administrators responsible for Microsoft 365 Copilot governance, model access, and usage-based costs. In the walkthrough, policies can apply to all users or to a selected group. That group-based option lets an organization set different configurations for teams whose tasks or access needs differ.

Model templates are identified as being in preview in the demonstration. The material does not specify which licenses, billing arrangements, regions, or tenant configurations are required, nor does it establish a general rollout schedule. Admins should verify the feature and relevant controls in their own tenant before basing a deployment plan on the demonstration.

The walkthrough places the settings in the Microsoft 365 admin center under Copilot and Cost management. It does not give a more detailed navigation path, role requirements, or a list of prerequisites. Those details are not established by the available material.

How it works

The two setup routes shown are creating a model template first and linking it to a spending policy, or creating a spending policy and configuring a template along the way. The second route can create the related template during policy setup. The policy also includes group targeting and options for feature access and credit limits.

1. Open Cost management under Copilot in the Microsoft 365 admin center, then review the spending policies and model templates.
2. Create a model template and choose the models to make available. The demonstration starts with a restricted selection and assigns the template to a spending policy.
3. For a separate user tier, create a spending policy and choose the option to apply it to specific groups. Select the group the policy should cover.
4. Configure the features available under that policy, set a monthly credit limit if needed, and choose or create a model template with the desired model selection.
5. Choose whether to use available capacity packs, then create the policy. Review the resulting policy and template in Cost management.

In the example, the administrator sets a 10,000-credit monthly limit for the group policy and selects an option to use available capacity packs. These are demonstration choices, not recommended limits or requirements for every organization. The walkthrough also shows that features such as Code, Cowork, and API access can be adjusted in the policy configuration.

After the policy is created, its associated template appears in the model templates view. Administrators can edit the template, but the demonstrated interface blocks deletion while a spending policy still uses it. The association must first be removed before the template can be deleted.

Limitations and open questions

The walkthrough illustrates configuration but does not provide official licensing guidance, a complete model catalog, or a confirmed rollout timeline. It also does not quantify credit consumption by model or establish that choosing a particular model will produce a specific saving. Treat the cost rationale as a reason to govern model access, not as a measured savings claim.

Model names and selections in the demonstration are examples, and the available choices may depend on what the tenant displays. The material does not explain how model availability changes over time, how templates interact with every Copilot product, or whether there are tenant-wide defaults beyond the policy configuration shown.

Before changing access, administrators should review which groups need which features and models, then check that the policy and its associated template reflect those decisions. The available material does not describe an alternative model-control method or provide a way to calculate an appropriate credit cap. The feature is in preview, so its behavior and configuration may change.

Sources

• Steve Corey’s demonstration of Copilot model templates

Frequently asked questions

Where are Copilot model templates configured?

The demonstration finds them under Copilot and Cost management in the Microsoft 365 admin center.

Can a Copilot model template be assigned to a group?

The template is associated with a spending policy, and the demonstration shows a spending policy targeted at a specific group.

Can I delete a model template that is in use?

Not while it is associated with a spending policy in the demonstrated interface. Remove the association first, then delete the template.

What license is required for Copilot model templates?

The available material does not specify license requirements. It identifies model templates as being in preview.