Microsoft Launches M365 E7 and Agent 365 — AI Bundled at $99 per User

Microsoft has announced Microsoft 365 E7, a new enterprise subscription that bundles M365 E5, Copilot, Entra Suite, and the brand-new product Agent 365 into a single SKU — priced at $99 per user per month. General availability is set for May 1, 2026.

What is Agent 365?

Agent 365 is Microsoft's new agentic AI platform that allows organizations to build, deploy, and manage AI agents directly within the Microsoft 365 environment. This includes the ability to orchestrate agent workflows across Teams, Outlook, SharePoint, and Dynamics 365.

Pricing and Bundle

The E7 package includes:

• Microsoft 365 E5 (compliance, security, analytics)
• Microsoft 365 Copilot (AI assistant in all M365 apps)
• Entra Suite (identity and access management)
• Agent 365 (new agentic AI platform)

By comparison, E5 + Copilot alone is estimated at approximately $90 per user per month — meaning E7 adds Agent 365 for just $9 more.

Strategic Signal

The launch is a clear signal that Microsoft views agentic AI as the core of enterprise productivity going forward. Mustafa Suleyman, recently elevated to lead the company's superintelligence efforts, has been freed from day-to-day Copilot operations to focus on next-generation models.

Rivals like Google (Workspace + Gemini) and Salesforce (Agentforce) will feel the pressure from such an aggressive bundling strategy.

Bottom Line for CIOs

For organizations already paying for E5 and Copilot licenses, E7 could be a cost-effective upgrade — particularly if Agent 365 proves to deliver real value in process automation.