Preparing for Future Microsoft AI Services: How to Keep Your Agreements Flexible

Preparing for Future Microsoft AI Services

Microsoft’s AI roadmap promises a wave of new capabilities across Microsoft 365, Azure, and Dynamics. From Microsoft 365 Copilot in Office apps to GitHub Copilot for developers and Security Copilot for cybersecurity teams, these future Microsoft AI services are poised to transform work. However, enterprises must plan carefully.

New AI tools often come with hefty licensing fees and evolving terms, so it’s crucial to keep your Microsoft agreements flexible and avoid lock-in.

CIOs and CFOs should approach Microsoft’s AI promises with a healthy skepticism – focusing on contracts that protect their interests and budget.

Read our ultimate guide to Negotiating Microsoft Copilot & AI Licensing.

Microsoft AI Roadmap and Future Services

Microsoft’s public AI roadmap for 2025 and beyond shows AI woven into nearly every product. Emerging Microsoft AI services span productivity (Microsoft 365 Copilot), software development (GitHub Copilot), security operations (Security Copilot), and employee experience (Viva AI).

Microsoft positions these innovations as game-changers, touting how Copilot-style assistants will boost productivity, automate tasks, and derive insights from data.

However, it’s important to parse Microsoft’s AI roadmap critically. Microsoft often unveils flashy AI capabilities that eventually require a premium license or add-on purchase.

Their strategy is to monetize AI: expect each major AI feature to come with a new licensing requirement or fee.

In other words, every “breakthrough” Copilot tool could become another paid line item on your contract.

Smart planning means identifying which of these emerging AI tools will genuinely benefit your organization – and ensuring your agreements can accommodate them without breaking the budget.

Future Microsoft AI Licensing Models Explained

With many new AI products, the AI licensing models Microsoft may adopt are still in flux. Today’s models give clues: Microsoft 365 Copilot is sold as a per-user add-on (~$30/user/month), while Azure OpenAI Service is usage-based (pay-per-use for language model queries).

Going forward, Microsoft could bundle some AI features into existing plans or introduce entirely new licensing tiers. For example, a future Copilot for Viva or Power Platform might only be included in a top-tier suite or offered as a separate add-on.

Microsoft is also testing consumption-based pricing for certain AI offerings. A case in point is Microsoft Security Copilot, which utilizes a capacity model (Security “compute units” running hourly) that can incur annual costs of six figures for a typical enterprise deployment.

The key for customers is to understand Microsoft’s strategy behind these models. Microsoft may charge a premium for standalone AI features initially, then later adjust prices as adoption grows.

There’s a risk of unpredictable costs if an AI service is metered by usage – a spike in activity one month could send your bill soaring. Conversely, a flat per-user fee can lead to overpaying for underutilized seats.

Watch for new Microsoft AI product pricing tactics, such as requiring an EA to use a new AI service or only discounting it with an enterprise-wide commitment.

Above all, demand clarity on licensing and costs: know exactly how each new AI service is licensed, what it could cost at various usage levels, and lock down those terms in your EA so they can’t shift mid-stream.

Read about negotiating Microsoft Copilot, Negotiating Microsoft 365 Copilot Licensing: Pricing Models and How to Get a Fair Deal.

New AI Features and Microsoft EA Contract Terms

A standard Microsoft Enterprise Agreement today likely doesn’t mention upcoming AI products at all.

This means any new AI features Microsoft releases could fall outside your contract unless you negotiate provisions now. It’s wise to include an AI clause in your Microsoft EA that addresses new services. For example, insist that any new Microsoft AI service you add mid-term inherits the same discount percentage as your current products.

Such terms prevent Microsoft from charging you the full list price for the next AI add-on just because it wasn’t in the original deal.

Think ahead about future AI contract terms you’ll need. Push for the right to pilot new AI features free (or at a steep discount) before fully committing. Also, make sure you can add these products mid-term without waiting for your next renewal or signing a whole new contract.

Be wary of bundling tricks – Microsoft might offer a hot new AI feature only as part of a costly suite or high-end license (for instance, tying an AI tool to an E5 plan).

Negotiate so you can get the specific AI capabilities you need without being forced into an expensive bundle. In short, bake future-proof language into your EA now, so you’re not stuck later with take-it-or-leave-it offers on must-have AI tech.

Budgeting for Future Microsoft AI Adoption

AI budget planning in EA renewals is essential as Microsoft’s AI portfolio grows. Forecast which new AI services (Copilot, etc.) your organization might adopt in the next few years and align them with your strategy.

Microsoft’s aggressive AI push can quickly inflate your IT spending – for example, rolling out Microsoft 365 Copilot to a large workforce could add millions in annual costs.

To avoid budget shock, negotiate financial guardrails. One tactic is to secure an innovation fund (a pool of credits) for emerging AI tools, giving you a cushion to pilot new services without unplanned expense.

Finally, establish a clear Microsoft AI adoption strategy internally: start with small pilot projects to prove the value and ROI of an AI tool before scaling it up.

By funding limited rollouts and expanding only after success, you can manage both technical risk and budget impact.

ROI Calculation Example: Microsoft 365 Copilot

Evaluating return on investment is critical before rolling out a pricey AI add-on enterprise-wide.

For example, consider the potential ROI of deploying Microsoft 365 Copilot across 100 users:

In this scenario, only ~20% active usage yields a negligible ROI (~44%), whereas near 100% usage yields an ROI above 1,300%. Clearly, an AI tool only delivers value if employees actually use it. This is why it’s wise to start with a pilot group and measure actual impact before rolling out to everyone.

Read how to negotiate data usage, Negotiating AI Data Usage and Privacy Terms in Microsoft Contracts.

Checklist – Evaluating ROI for AI Investments

• Estimate expected productivity gains (e.g., hours saved or faster output) from each new AI tool.
• Quantify the monetary value of those efficiency gains (e.g,. labor cost savings).
• Calculate the total cost of the AI licensing and any required subscriptions.
• Project the net benefit (value gained minus cost), and calculate ROI (percent return and payback period) under different adoption assumptions.

Negotiating Flexibility for Future AI in Microsoft EA

When structuring your EA, prioritize enterprise AI licensing flexibility to adapt to emerging new technologies. Negotiate rights to swap or reallocate AI licenses during your term.

If Microsoft introduces a superior AI product or the one you purchased isn’t delivering value, you should be able to shift your investment to another service. Similarly, insist on true-down rights to reduce your AI license count if uptake is low, so you’re not stuck paying for shelfware that nobody uses.

Lock in your current discount levels for any future AI products. For example, if you have 20% off your Microsoft 365 licenses now, insist that any new AI service you add later also gets a 20% discount.

It’s much easier to secure that promise during your EA negotiation than to beg for a discount on a new AI add-on later.

Finally, be strategic about timing. If you suspect Microsoft has a big AI launch or price hike on the horizon, consider renewing your EA a bit early to lock in current terms.

Also, ask for a peek at Microsoft’s AI roadmap (under NDA) so you won’t be caught off guard by new products or pricing changes.

AI Compliance, Data Privacy, and IP Rights

Adopting Microsoft’s AI tools raises important data questions. Data privacy should be a top concern: insist that your contract guarantees any data you feed into these AI services isn’t used outside your organization or to train Microsoft’s models.

Ensure each AI service respects your data residency requirements and provides audit logs or controls for the data it processes.

Beyond privacy, clarify IP rights and compliance obligations. If your team uses Copilot to generate code or content, confirm your company owns the outputs (Microsoft’s terms usually say you do, but double-check).

Verify that new AI features support your regulatory needs (for example, offering GDPR-compliant data residency or encryption for sensitive information). You may also want to address liability: for instance, who is responsible if the AI produces copyrighted material or leaks confidential data?

Microsoft may not readily indemnify these risks, but it’s worth discussing. In short, treat these AI services like any other cloud product – demand strong security, privacy, and compliance commitments in your agreement.

Comparison Table – Current vs Future Microsoft AI Services

Checklist – Must-Have AI Licensing Negotiation Levers

• Add a future AI clause ensuring new Microsoft AI services can be added to your EA under agreed terms.
• Secure price protection for AI add-ons (lock prices and guarantee your discounts for new AI products).
• Negotiate an innovation fund or credit pool earmarked for emerging AI tools to trial them during the EA term.
• Push for pilot/trial periods (3–6 months) for all new AI features before a full commitment.
• Ensure swap rights or the ability to reallocate spend if an AI service is discontinued or underused.
• Clarify data privacy and IP ownership terms for AI outputs in the contract.
• Demand early roadmap visibility into Microsoft’s upcoming AI releases to inform your planning.

FAQ: Future Microsoft AI Licensing & Contract Terms

Q1: Will new Microsoft AI features be included in my EA?
A1: Not by default. There’s no guarantee, so negotiate inclusion (or at least pre-set discounts) for future AI services upfront.

Q2: What if Microsoft retires an AI model mid-contract?
A2: Negotiate successor rights or swap clauses that let you transition to the replacement service without extra cost or a new contract.

Q3: How do I budget for future Microsoft AI services?
A3: Request an innovation credit pool or flexible Azure funds in your EA that you can allocate to new AI services when needed.

Q4: Can I test new AI features before paying?
A4: Absolutely. Push for contractual trial periods (e.g. 3–6 months) for any new AI feature so you only invest after proving value.

Q5: How do I avoid being locked into Microsoft’s AI pricing strategy?
A5: Negotiate future AI inclusion terms now – ensure any new AI product can be adopted under your current agreement at your existing discount levels.

Read about our Microsoft Negotiation Services

Read about our Microsoft Negotiation Case-Studies

Do you want to know more about our Microsoft Services?

Please enable JavaScript in your browser to complete this form.

Name *

First

Last

Email *

Company

Message *

Submit