Microsoft has introduced a pay-as-you-go pricing model for its new AI agent, Copilot Cowork, marking a significant shift from its two-decade reliance on fixed subscription fees. Launched Tuesday, Copilot Cowork independently performs tasks such as document creation and email management, requiring an existing Microsoft 365 Copilot subscription alongside per-task billing based on computing power used. This change is driven by the high computational costs associated with advanced AI systems and the varying levels of resource consumption among users. Microsoft cites examples of the agent efficiently handling large-scale tasks, like comparing thousands of documents, and streamlining meeting preparation. The new pricing structure aims to align costs with actual usage, comparing it to a “pay-at-the-pump” model for fuel. This move reflects a broader trend in Silicon Valley towards “agentic” AI, where AI assistants proactively act on user requests, and acknowledges the unsustainability of fixed pricing for such resource-intensive technology.