Enterprises have traditionally bought AI the way they buy any new software: through separate budgets, pilot programs, procurement approvals, and vendor evaluations before committing to deployment. AI has largely been treated as an emerging technology that organizations could test before making a significant investment.
That approach is beginning to change as Microsoft builds more AI capabilities into its enterprise subscriptions. Starting July 1, organizations renewing eligible Microsoft 365 subscriptions will encounter AI as part of the software agreements they already renew each year instead of through a separate technology purchase.
Microsoft reported more than 20 million paid Microsoft 365 Copilot seats during its FY2026 Q3 earnings call, up from 15 million in the previous quarter. The company also said average revenue per user (ARPU) growth was again led by Microsoft 365 E5 and Microsoft 365 Copilot, showing that AI is becoming an important source of enterprise revenue alongside traditional subscriptions. While Microsoft did not disclose its total commercial Microsoft 365 seat count for the quarter, it previously reported more than 450 million paid commercial Microsoft 365 seats and continued to report 6% year-over-year commercial seat growth.
