Work IQ usage, licensing and governance controls
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Explains how Work IQ is used in Copilot Studio and custom applications, when Copilot Credits apply, and how Microsoft 365 and Power Platform administrators control consumption.
TL;DR
Work IQ grounds agents with permitted information from email, meetings, chats and files. Native Microsoft 365 Copilot grounding is included for eligible licensed users, while the Copilot Studio GitHub Copilot harness, Cowork and custom API clients consume Copilot Credits. Microsoft 365 controls user spending policies; Power Platform controls environment capacity and agent limits.
Original by Anders Fjordhoj, on The Custom Engine. Read the original
This is our own summary, not a republication or full translation.
Governance takeaway
- Admins/CoE: configure both admin centers before rolling this out — set Work IQ spending policies in the Microsoft 365 admin center, allocate environment capacity in PPAC, and turn on Stop usage for agent limits.
- Leadership/Business: don’t treat a low Cowork limit as a hard stop — it still grants access, and enforcement can lag behind actual consumption, so credits can burn past the configured limit before it bites.
Frequently asked questions
Do custom apps that call the Work IQ API directly consume Copilot Credits?
Yes, when usage-based billing is enabled, direct Work IQ API calls from custom solutions consume Copilot Credits. A Microsoft 365 Copilot license is not required for this route.
Why does the GitHub Copilot harness in Copilot Studio still cost credits for licensed users?
In that harness, the unified Work IQ integration through Model Context Protocol tools consumes Copilot Credits even when the user holds a Microsoft 365 Copilot license.
Which admin center sets Work IQ spending limits and which one handles agent limits?
The Microsoft 365 admin center holds Work IQ spending policies. The Power Platform admin center manages Copilot Studio environment capacity, prepaid credits and monthly agent limits.