License Requirements by Control
License mapping guidance for the current FSI Agent Governance Framework control catalog.
License Summary
| License | Controls Requiring | Primary Use |
|---|---|---|
| Power Platform Premium | 1.1, 1.4, 1.8, 1.14, 1.20, 2.1, 2.2, 2.3, 2.5, 2.8, 2.9, 2.15, 2.24, 3.2, 3.5, 3.6, 3.7, 3.8 | Managed Environments, ACP, PPAC governance |
| Microsoft 365 E5 | 1.5, 1.6, 1.7, 1.9, 1.10, 1.12, 1.13, 1.17, 1.19, 1.21, 1.22, 3.14 | Purview full suite |
| Microsoft Purview Suite (formerly M365 E5 Compliance) | 1.5, 1.6, 1.7, 1.9, 1.10, 1.12, 1.13, 1.17, 1.19, 1.22, 3.14 | Purview add-on to E3 |
| Microsoft 365 E3 | 1.3, 1.11, 1.15, 1.16, 2.10 | Basic security features |
| Microsoft Entra ID P1 | 1.11, 1.18, 2.8, 2.26 | Conditional Access, Agent ID governance |
| Microsoft Entra ID P2 | 1.11, 1.12, 1.23, 2.26, 4.2 | PIM, Access Reviews, Agent ID Protection |
| Microsoft Entra Internet Access | 1.29 | Global Secure Access, Secure Web and AI Gateway |
| SharePoint Advanced Management | 4.1, 4.2, 4.3, 4.4, 4.5, 4.6 | SharePoint governance |
| Copilot Studio | All | Agent development |
| Microsoft 365 Copilot | 2.24, 3.8 | Copilot experiences and first-party agents |
| Microsoft Agent 365 (per-user) | 1.8, 2.24, 2.25, 2.26, 3.8, 3.13, 3.14 | Agent control plane, registry, analytics, identity, observability |
| Windows 365 for Agents (Public Preview) | W365A scope (touchpoints: 1.7, 1.20, 1.29, 2.25) | Agent Cloud PC execution in public preview; Microsoft Learn lists Windows 365 or Agent 365 tenant licensing plus an active W365A billing plan. |
| Microsoft 365 Copilot Business | N/A | SMB Copilot access |
Agent 365 and GSA licensing references
Microsoft Agent 365 overview states that Microsoft Agent 365 is generally available on a per-user basis and recommends (not requires) Entra P1, Entra P2, or Entra Suite together with Purview DLP. Microsoft Learn also states that agent network controls use Microsoft Entra Internet Access, included in Microsoft Entra Suite or licensed standalone. If procurement materials reference Microsoft 365 E7, verify that bundle naming against current Microsoft licensing documentation before contractual reference. See Microsoft Agent 365 overview, Microsoft Entra Agent ID licensing, and Global Secure Access licensing overview.
Microsoft 365 Copilot Business
SMB-Focused Copilot License (GA December 2025)
Microsoft 365 Copilot Business is designed for smaller organizations (up to 300 users) and became generally available December 1, 2025.
| Aspect | Details |
|---|---|
| Price | $21/user/month |
| User Limit | Up to 300 users per tenant |
| GA Date | December 1, 2025 |
| Prerequisites | Microsoft 365 Business Basic, Standard, Premium, or Apps for Business |
Key Differences from Enterprise Copilot:
| Capability | Copilot Business | Microsoft 365 Copilot |
|---|---|---|
| User limit | 300 maximum | Unlimited |
| Base license | M365 Business SKUs | M365 E3/E5 |
| Microsoft Copilot Studio | Included (limited) | Full Copilot Studio |
| Advanced compliance | Basic | Full Purview integration |
FSI Applicability: Smaller broker-dealers, RIAs, or credit unions with under 300 users may find this SKU more cost-effective than enterprise licensing. However, organizations with significant regulatory compliance requirements (FINRA 4511 long-term retention, comprehensive audit) should evaluate whether Microsoft Purview Suite features are necessary before selecting the Business SKU.
E5 License Distinction: E5 vs Microsoft Purview Suite vs E5 Security
These Are Three Distinct Products
Microsoft 365 E5, Microsoft Purview Suite, and E5 Security are separate products with different feature sets. Documentation must be precise about which is required. Microsoft Purview Suite was formerly named "Microsoft 365 E5 Compliance" (renamed September 2025); older documentation and admin portals may still use the previous name.
| License | What It Includes | Typical Use Case |
|---|---|---|
| Microsoft 365 E5 | Full suite: E3 + Purview Suite + E5 Security + additional services | Enterprise with comprehensive needs |
| Microsoft Purview Suite (formerly E5 Compliance) | Microsoft Purview suite (DLP, IRM, eDiscovery, Insider Risk, etc.) | Organizations with E3 needing compliance |
| Microsoft 365 E5 Security | Microsoft Defender suite (Defender for Office 365 P2, Defender for Endpoint P2, etc.) | Organizations with E3 needing security |
Key Distinctions:
| Capability | E5 | Purview Suite | E5 Security |
|---|---|---|---|
| Microsoft Purview DLP | ✅ | ✅ | ❌ |
| Microsoft Purview DSPM for AI | ✅ | ✅ | ❌ |
| Microsoft Purview Insider Risk | ✅ | ✅ | ❌ |
| Microsoft Purview eDiscovery | ✅ | ✅ | ❌ |
| Microsoft Defender for Office 365 P2 | ✅ | ❌ | ✅ |
| Microsoft Defender for Endpoint P2 | ✅ | ❌ | ✅ |
| Microsoft Defender for Cloud Apps | ✅ | ❌ | ✅ |
| Microsoft Sentinel (50 MB/user/month) | ✅ | ❌ | ✅ |
Documentation Guidance: When referencing E5 requirements, specify whether Microsoft Purview Suite is sufficient (Purview features) or full E5/E5 Security is required (Defender features).
Copilot Control System License Language
Foundational vs Optimized
Microsoft Learn now describes Copilot Control System licensing in Foundational and Optimized tiers. Foundational controls map to Microsoft 365 admin center, SharePoint Advanced Management, and Microsoft Purview capabilities available with A3/E3/G3 licensing. Optimized controls map to Microsoft Purview and Microsoft Defender for Cloud Apps capabilities available with A5/E5/G5 licensing.
For FSI implementations, Zone 2 deployments often start with Foundational controls, while Zone 3 deployments typically need Optimized data security, insider risk, and reporting capabilities.
Pillar 1: Security Controls
| Control | Control Name | Required License | Notes |
|---|---|---|---|
| 1.1 | Restrict Agent Publishing | Power Platform Premium | Managed Environments required |
| 1.2 | Agent Registry | Microsoft 365 E3+ | Integrated Apps in M365 Admin |
| 1.3 | SharePoint Content Governance | Microsoft 365 E3+ | SharePoint included; SAM for advanced |
| 1.4 | Advanced Connector Policies | Power Platform Premium | Managed Environments + Environment Groups |
| 1.5 | DLP and Sensitivity Labels | Microsoft 365 E5 or Microsoft Purview Suite | Purview DLP + Information Protection. Note: DLP for Copilot prompts is available to all M365 Copilot/Copilot Chat users at no additional cost (any SKU); DLP to restrict Copilot from processing files/emails requires E5/Purview Suite |
| 1.6 | DSPM for AI | Microsoft 365 E5 or Microsoft Purview Suite | Microsoft Purview DSPM for AI |
| 1.7 | Audit Logging | Microsoft 365 E5 (Premium) or E3 (Standard) | E5 for 10-year retention |
| 1.8 | Runtime Protection | Power Platform Premium + Microsoft Agent 365 (per-user) if adopted as the post-GA unified inventory source; verify current AI Agent Inventory dependency before production rollout | Managed Environments feature; Defender for Cloud Apps currently surfaces AI Agent Inventory. Microsoft has indicated Agent 365 will become the unified inventory source post-GA; verify enforcement timing on the Agent 365 roadmap before committing supervisory cadences. |
| 1.9 | Data Retention | Microsoft 365 E5 or Microsoft Purview Suite | Data Lifecycle Management |
| 1.10 | Communication Compliance | Microsoft 365 E5 or Microsoft Purview Suite | Purview Communication Compliance |
| 1.11 | Conditional Access & MFA | Microsoft Entra ID P1 (basic) or P2 (advanced) | P2 for risk-based policies |
| 1.12 | Insider Risk | Microsoft 365 E5 or E5 Insider Risk | Purview Insider Risk Management |
| 1.13 | Sensitive Information Types | Microsoft 365 E5 or Microsoft Purview Suite | Custom SITs require E5 |
| 1.14 | Data Minimization | Power Platform Premium | Environment-level controls |
| 1.15 | Encryption | Microsoft 365 E3+ | Default encryption included |
| 1.16 | IRM for Documents | Microsoft 365 E3+ | Azure Information Protection |
| 1.17 | Endpoint DLP | Microsoft 365 E5 or Microsoft Purview Suite | Endpoint DLP |
| 1.18 | RBAC | Microsoft Entra ID P1+ | Role management |
| 1.19 | eDiscovery for Agent Interactions | Microsoft 365 E5 or Microsoft Purview Suite | eDiscovery (Premium) for AI content search |
| 1.20 | Network Isolation and Private Connectivity | Azure subscription + Power Platform Premium | VNet integration, Private Endpoints |
| 1.21 | Adversarial Input Logging | Microsoft 365 E5 or E5 Security | Defender for Cloud Apps + Purview Audit |
| 1.22 | Information Barriers | Microsoft 365 E5 or Microsoft Purview Suite | Purview Information Barriers |
| 1.23 | Step-Up Authentication | Microsoft Entra ID P2 | Authentication context + Conditional Access |
| 1.24 | Defender AI-SPM | Microsoft Defender for Cloud (CSPM) | Defender CSPM plan required |
| 1.25 | MIME Type Restrictions | Power Platform Premium | Managed Environments; optional Purview DLP |
| 1.26 | Agent File Upload and File Analysis Restrictions | Power Platform Premium | Copilot Studio v8+; Purview DLP for Zone 2+ |
| 1.27 | AI Agent Content Moderation Enforcement | Power Platform Premium | Native Copilot Studio content moderation |
| 1.28 | Policy-Based Agent Publishing Restrictions | Power Platform Premium | Tenant DLP policies; PPAC security scans |
| 1.29 | Global Secure Access Network Controls | Microsoft Entra Internet Access | Secure Web and AI Gateway for Copilot Studio agents routes supported agent traffic through Global Secure Access; requires GSA onboarding and a Dataverse-backed Power Platform environment. See Secure Web and AI Gateway for agents and GSA licensing |
Pillar 2: Management Controls
| Control | Control Name | Required License | Notes |
|---|---|---|---|
| 2.1 | Managed Environments | Power Platform Premium | Per-environment license |
| 2.2 | Environment Groups | Power Platform Premium | Requires Managed Environments |
| 2.3 | Change Management | Power Platform Premium | ALM features |
| 2.4 | Business Continuity | Microsoft 365 E3+ | Documentation-focused |
| 2.5 | Testing & Validation | Power Platform Premium | Test environments |
| 2.6 | Model Risk Management | N/A (process) | Process/documentation control |
| 2.7 | Vendor Risk Management | N/A (process) | Process/documentation control |
| 2.8 | Access Control & SoD | Microsoft Entra ID P1+ | Security roles |
| 2.9 | Performance Monitoring | Power Platform Premium | Analytics features |
| 2.10 | Patch Management | Microsoft 365 E3+ | Automatic with SaaS |
| 2.11 | Bias Testing | N/A (process) | Process/documentation control |
| 2.12 | Supervision & Oversight | Microsoft 365 E5 (for monitoring) | Communication Compliance optional |
| 2.13 | Documentation & Records | Microsoft 365 E3+ | SharePoint/OneDrive storage |
| 2.14 | Training & Awareness | Microsoft 365 E3+ | Viva Learning optional |
| 2.15 | Environment Routing | Power Platform Premium | Managed Environments auto-provisioning |
| 2.16 | RAG Source Integrity | N/A (process) | Process/documentation control |
| 2.17 | Multi-Agent Orchestration Limits | Copilot Studio | Orchestration requires Copilot Studio |
| 2.18 | Automated Conflict of Interest | N/A (process) | Process/documentation control |
| 2.19 | Customer AI Disclosure | N/A (process) | Transparency/labeling requirement |
| 2.20 | Adversarial Testing / Red Team | N/A (process) | Process; optional Azure AI safety tools |
| 2.21 | AI Marketing Claims | N/A (process) | Process/documentation control |
| 2.22 | Inactivity Timeout Enforcement | Power Platform Premium | BAP Admin API for timeout configuration |
| 2.23 | User Consent and AI Disclosure Enforcement | Microsoft 365 E3+ | M365 Admin Center AI Disclaimer toggle |
| 2.24 | Agent Feature Enablement and Restriction Governance | Power Platform Premium + Microsoft 365 Copilot; Microsoft Agent 365 (per-user) for Agent 365 admin-center governance | PPAC feature governance remains the Power Platform surface; Microsoft 365 admin center agent-governance features vary by subscription, with additional Agent 365 branding and details when licensed. See Agent management in Microsoft 365 admin center and Agent ID licensing |
| 2.25 | Agent 365 Governance Console | GA May 1, 2026 — Microsoft Agent 365 per-user licensing | AI Admin/Global Admin/Global Reader roles |
| 2.26 | Entra Agent ID Identity Governance | Microsoft Agent 365 (per-user) + Microsoft Entra ID P1/P2 by feature | Agent ID features require Microsoft Agent 365 per-user licensing; ID Governance for agents requires Entra ID P1 or Microsoft 365 E3, and ID Protection for agents requires Entra ID P2, Microsoft 365 E5, or Entra Suite. See Agent ID licensing |
Pillar 3: Reporting Controls
| Control | Control Name | Required License | Notes |
|---|---|---|---|
| 3.1 | Agent Inventory | Microsoft 365 E3+ | M365 Admin Center |
| 3.2 | Usage Analytics | Power Platform Premium | CoE Toolkit recommended |
| 3.3 | Compliance Reporting | Microsoft 365 E5 | Purview reports |
| 3.4 | Incident Reporting | Microsoft 365 E3+ | Process/documentation |
| 3.5 | Cost Allocation | Power Platform Premium | License tracking |
| 3.6 | Orphaned Agent Detection | Power Platform Premium | Managed Environments feature |
| 3.7 | PPAC Security Posture | Power Platform Premium | Managed Environments security dashboard |
| 3.8 | Copilot Hub | Power Platform Premium + Microsoft 365 Copilot | PPAC Copilot Hub plus M365 admin center agent reporting; Agent overview metrics available with Microsoft Agent 365 per-user licensing at GA |
| 3.9 | Microsoft Sentinel Integration | Microsoft Sentinel + E5 Security | Microsoft Sentinel workspace required |
| 3.10 | Hallucination Feedback Loop | Microsoft 365 E3+ | Process-focused; Purview optional |
| 3.11 | Centralized Agent Inventory Enforcement | Power Platform Premium | PPAC Agent Inventory feature |
| 3.12 | Agent Governance Exception and Override Management | Microsoft 365 E3+ | Dataverse/SharePoint exception register |
| 3.13 | Agent 365 Admin Center Analytics | Microsoft Agent 365 (per-user) | Agent overview hero metrics and governance cards start collecting data when Agent 365 licenses are activated; feature visibility can vary by subscription. See Agent management in Microsoft 365 admin center |
| 3.14 | Agent 365 Observability SDK | Microsoft Agent 365 (per-user) + Microsoft 365 E5 or Microsoft Purview Suite for extended audit retention | Observability SDK telemetry enables M365 admin center monitoring and Defender/Purview integration; Purview audit-retention licensing should be validated for regulated retention requirements. See Agent 365 Observability and Purview audit retention policies |
Pillar 4: SharePoint Controls
| Control | Control Name | Required License | Notes |
|---|---|---|---|
| 4.1 | IAG / Restricted Content Discovery | SharePoint Advanced Management + at least one Microsoft 365 Copilot license | SAM required for IAG; RCD requires at least one Copilot license assigned in tenant (March 2026 prerequisite) |
| 4.2 | Site Access Reviews | Microsoft Entra ID P2 + SAM | Access Reviews + SAM |
| 4.3 | Retention Management | Microsoft 365 E5 or Microsoft Purview Suite | Data Lifecycle Management |
| 4.4 | Guest Access Controls | Microsoft 365 E3+ | Basic; E5 for advanced |
| 4.5 | Security Monitoring | SharePoint Advanced Management + E5 | SAM + Purview Audit |
| 4.6 | Grounding Scope Governance | SharePoint Advanced Management | Restricted SharePoint Search |
| 4.7 | M365 Copilot Data Governance | Microsoft 365 E5 or Microsoft Purview Suite | Purview data governance for Copilot |
License Bundles for FSI
Minimum (Zone 1 Only)
- Microsoft 365 E3
- Power Platform per-user (standard)
Recommended (Zone 2)
- Microsoft 365 E5 or E3 + Microsoft Purview Suite
- Power Platform Premium (per-environment)
- Microsoft Entra ID P1
Regulated (Zone 3)
- Microsoft 365 E5
- Power Platform Premium (per-environment for all production)
- Microsoft Entra ID P2
- SharePoint Advanced Management
- Copilot Studio (per-user or capacity-based)
Premium Connector Licensing by Product
Copilot Studio premium connector usage is metered
Premium connector licensing varies by product. For Copilot Studio, premium connector calls are consumption-based and billed against Copilot Studio messages, prepaid message packs, or PAYG rather than being unconditionally "included." Microsoft documents the same distinction in the Power Apps / Power Automate licensing FAQ.
| Product | Premium Connectors | Dataverse Access | Notes |
|---|---|---|---|
| Copilot Studio | Consumption-based (metered against Copilot Studio messages / prepaid message packs / PAYG) | Included via tenant default environment baseline (3 GB database + 3 GB file + 1 GB log = 7 GB) plus per-license accruals | Standalone Power Platform Premium per-user license is not required for end users when calls are metered to the agent's billing capability. Verify tenant capacity in Power Platform Admin Center |
| Power Apps | Requires Premium license | Requires Premium license | Per-user or per-app licensing |
| Power Automate | Requires Premium license | Requires Premium license | Per-user or per-flow licensing |
Common Misconception: Teams building Copilot Studio agents do not need separate premium connector licenses for end users when premium connector calls are billed to the agent's message capacity. If the same connectors are used outside the agent billing path, standard Power Apps / Power Automate premium licensing rules still apply.
Power Apps/Power Automate Context: Premium connector and Dataverse access require Power Apps Premium, Power Apps per app, Power Automate Premium, or Power Automate per flow licenses for all accessing users.
Cost Optimization Tips
-
Start with E3 + Add-ons: Many FSI organizations start with E3 and add Microsoft Purview Suite and E5 Security as add-ons rather than full E5.
-
Managed Environments per Environment: Only production and UAT typically need Managed Environments; dev/test can use standard.
-
SharePoint Advanced Management: Only required if using IAG/RCD features for Zone 3 SharePoint governance.
-
Entra ID P2 vs P1: P2 is only required for Privileged Identity Management and Access Reviews; P1 covers Conditional Access.
-
Copilot Studio Licensing: Consider capacity-based licensing for high-volume agent scenarios vs. per-user for limited makers.
License Verification
To verify current license assignments:
Microsoft 365 Admin Center
- Sign in to https://admin.microsoft.com
- Navigate to Billing > Licenses
- Review available and assigned licenses
Power Platform Admin Center
- Sign in to https://admin.powerplatform.microsoft.com
- Navigate to Manage > Environments
- Select an environment to view license type
Entra Admin Center
- Sign in to https://entra.microsoft.com
- Navigate to Identity > Users > Select user > Licenses
- Review assigned licenses
Additional Resources
- Power Platform Licensing Guide
- Microsoft 365 Licensing Guidance
- Microsoft Purview Licensing
- SharePoint Advanced Management
- Copilot Studio Licensing
- See also: Work IQ Governance Reference — Work IQ governance context for MCP tools and business skills; Work IQ is tracked as a governance surface rather than a separate license row in this matrix
Microsoft Agent 365 and Agent Management Essentials
GA note: Microsoft Agent 365 reaches general availability on May 1, 2026 as Microsoft Agent 365 per-user licensing. Recommended (not required) prerequisites: Entra P1/P2/Suite + Purview DLP. If procurement materials reference Microsoft 365 E7, verify that bundle naming against current Microsoft licensing documentation before publishing.
AI Agent Inventory enforcement timing remains a verification item
Defender for Cloud AI security posture management currently surfaces agent inventory information, and Microsoft Agent 365 overview documents the post-GA unified control plane. Microsoft has indicated Agent 365 will become the unified inventory source post-GA; verify enforcement timing on the Agent 365 roadmap before committing supervisory cadences.
Official prerequisites
| Requirement | Official guidance | Source |
|---|---|---|
| Tenant licensing | Microsoft Agent 365 per-user licensing; assign licenses from Microsoft 365 admin center. If procurement materials reference Microsoft 365 E7, verify that bundle naming against current Microsoft licensing documentation before contractual reference. | Microsoft Agent 365 overview |
| Day-to-day admin roles | AI Admin, Global Admin, or Global Reader (view-only) can manage agents in Microsoft 365 admin center | Agent prerequisites |
| Power Platform admin roles | Power Platform Administrator or Dynamics 365 Administrator may still be needed for Copilot Studio environment administration | Agent prerequisites |
| Sensitive role hardening | Use Entra Privileged Identity Management for AI Admin and other high-privilege roles | Agent prerequisites |
Microsoft Agent 365 Licensing at GA
| Licensing point | Microsoft-published guidance |
|---|---|
| GA model (May 1, 2026) | Microsoft Agent 365 — GA May 1, 2026 — Microsoft Agent 365 per-user license. Recommended (not required) prerequisites: Entra P1/P2/Suite + Purview DLP. Verify any "Microsoft 365 E7" bundle naming against current Microsoft licensing documentation before publishing. |
| Included entitlement | Agents acting on behalf of a licensed user are covered under that user's Microsoft Agent 365 per-user license. |
| Framework implication | Per-user licensing replaces the earlier per-agent-instance Frontier preview model; plan procurement and entitlement tracking accordingly. |
Control-specific interpretation
| Control | Licensing interpretation |
|---|---|
| 1.8 - Runtime Protection | Defender for Cloud Apps currently surfaces AI Agent Inventory. Microsoft has indicated Agent 365 will become the unified inventory source post-GA; verify enforcement timing on the Agent 365 roadmap before committing supervisory cadences. |
| 3.7 - PPAC Security Posture Assessment | Defender for Cloud Apps AI Agent Inventory cross-reference remains useful for portal walkthrough validation, but verify any Agent 365 enforcement timing before making it a hard supervisory dependency. |
| 2.25 - Agent 365 Governance Console | Requires Microsoft Agent 365 per-user licensing at GA (May 1, 2026). |
| 3.8 - Copilot Hub and Governance Dashboard | Power Platform Premium covers PPAC Copilot Hub; Agent overview metrics and governance cards are tied to Microsoft Agent 365 per-user licensing at GA (May 1, 2026). |
| 2.23 - User Consent and AI Disclosure Enforcement | Follow Agent Management Essentials prerequisites for AI Admin role assignment and PIM when delegating admin-center agent governance |
Microsoft Agent 365 Resources
- Agent Management Essentials overview
- Agent prerequisites
- Microsoft Agent 365 overview
- Agent 365 overview page in Microsoft 365 admin center
- Copilot Control System overview
Last Updated: May-2026 | Framework Version: v1.6.2