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Chapter 3 · Basic administration for Copilot and agents·v1.3.0·Updated 8/1/2026·~14 min

What's changed: (1) Fixed out-of-area distractors in nine mini-quizzes: NSG, TDE and Azure Key Vault are outside the official scope and were replaced with real features from the same Copilot/agent administration area (license assignment, PAYG billing policies, Copilot Analytics, prompt management, user access configuration, approval process, agent creation and monitoring), matching the fix applied to questions ab900-059/062/065/066/067/068/069/070/071. (2) Removed paragraph p-intune from section 2: Microsoft Intune appears in neither the skills measured nor the audience profile (inherited from the predecessor MS-900) and is unrelated to the subject of this section, Copilot administration. Question ab900-081, which carried the same inheritance, was likewise replaced with an official topic (creating an agent). / Section 2 now describes billing policies concretely, per Microsoft Learn (pay-as-you-go/setup): the Azure subscription and resource group charged, the users/groups in scope, a budget that notifies rather than caps, activation by connecting the policy to a pay-as-you-go service, the roles required to create one, and the 50-per-tenant limit. Mini-quiz q2 was rebuilt to match the corrected ab900-064 (distractors are now real features in the same Copilot administration area). Added per-section figures (cert-figure-retrofit). New AB-900 Chapter 3 (Domain 3 "Copilot and agent administration": capabilities = Copilot vs agents/monthly-PAYG/enable-disable/Researcher-Analyst-custom agents; Copilot admin = license assignment/PAYG billing policies/Copilot Analytics usage-adoption/prompt management; agent admin = user access config/creation/approval process/monitoring via M365 and Power Platform admin centers)

3.2Basic administrative tasks for Copilot

Key points

Understand assigning Copilot licenses, creating and monitoring pay-as-you-go billing policies (the Azure subscription charged, the users in scope, and the budget), monitoring usage and adoption via Copilot Analytics and the Microsoft 365 admin center, and managing prompts (saving, sharing, scheduling, deleting).

Day-to-day Copilot administration is done mainly in the Microsoft 365 admin center: assigning licenses, managing billing, understanding usage, and managing prompts.

3.2.1License assignment and billing policies

Assign Copilot licenses to target users (or groups); licensed users can then use Copilot. Pay-as-you-go (PAYG) applies to Microsoft 365 Copilot Chat and SharePoint agents: in the Microsoft 365 admin center under Copilot > Billing & usage, create a billing policy that defines, in one place, who is charged, who is in scope, and at what amount you are notified. Choose monthly vs PAYG based on usage patterns.

  1. Choose who is charged: attach an Azure subscription and resource group in the same tenant as Microsoft 365 (you can create them during policy setup if you have none).
  2. Choose the scope: add the users or groups the policy applies to.
  3. Set a budget (optional): admins receive email notification as spending reaches the amount.

Creating a policy does not start billing. On the Pay-as-you-go services tab of Billing & usage, select Microsoft 365 Copilot Chat or SharePoint agents and connect the policy you created—only then does it take effect. Creating one requires the Billing Administrator, AI Administrator, or Global Administrator role, and a tenant can hold up to 50 billing policies. PAYG can also be configured in the Power Platform admin center; having a policy in both places does not double-charge, though managing them in one place is recommended.

A budget notifies; it does not cap

Exceeding the amount does not stop billing or interrupt usage—the system only emails you about spending relative to that amount. To actually stop it, take a separate action such as disconnecting the pay-as-you-go service. Watch for options that present a budget as a hard limit.

3.2.2Monitoring usage/adoption and managing prompts

After deployment, use Copilot Analytics and Microsoft 365 admin center reports to monitor usage (who uses how much) and adoption (degree of uptake), driving enablement and license optimization. Also use prompt management (saving, sharing, scheduling, deleting frequently used prompts) to reuse and standardize useful prompts across the org.

Admin taskWhere/featureKey point
Enable a user for CopilotLicense assignment (M365 admin center)Assign to users/groups
Manage PAYG costBilling policy (Copilot > Billing & usage)Define subscription, users in scope, and budget; connect to the PAYG service
Understand usage/adoptionCopilot Analytics / admin reportsDrive adoption/optimization
Reuse useful promptsPrompt managementSave/share/schedule/delete
Exam point

Common: admin task → feature. E.g., "let a user use Copilot" = license assignment; "manage usage-based cost" = PAYG billing policies; "understand adoption and drive use" = Copilot Analytics; "save and share useful prompts" = prompt management.

Diagram of basic Copilot admin tasks: assign licenses, set billing policy, monitor usage/adoption (Copilot Dashboard), and govern prompts.
Basic admin tasks for Copilot

3.2.3Section summary

  • Copilot ops are mainly in the M365 admin center; license assignment controls availability
  • For PAYG, create a billing policy (Azure subscription + users in scope + budget) and connect it to the PAYG service; a budget notifies, it does not cap
  • Prompt management (save/share/schedule/delete) reuses useful prompts

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Quick check

(just a quick review)

Q1. Which basic admin task lets a user use Microsoft 365 Copilot?

Q2. You want SharePoint agent pay-as-you-go (PAYG) charges billed to a specific Azure subscription in your tenant, limited to a defined set of users, with email notification when spending reaches a set amount. What do you do in the Microsoft 365 admin center?

Q3. Which helps understand Copilot usage and adoption to drive enablement and optimization?

Q4. Which lets you save, share, schedule, and delete frequently used prompts to reuse/standardize them?

Q5. Where is Copilot administration (licenses, usage, etc.) primarily done?

Q6. Which is correct about choosing monthly licenses vs pay-as-you-go (PAYG)?

Check your understandingPractice questions for Chapter 3: Basic administration for Copilot and agents

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