Understand Microsoft’s new AI-first enterprise licensing model
Book a MeetingWith the introduction of Microsoft 365 E7, organisations now have a licensing model designed not just for users, but for AI-powered workflows, automation, and governed digital agents.
Where Microsoft 365 E5 represented the peak of traditional enterprise productivity and security, E7 introduces a new operational layer where AI is embedded directly into day-to-day business processes.
At Wizard IT, we help organisations understand, deploy, and optimise Microsoft 365 E7 licensing so they can scale AI securely and effectively.
Microsoft 365 E7 represents Microsoft’s next step in enterprise licensing, shifting the platform from user-centric productivity toward AI-driven operations. It is designed for organisations that want to embed AI into everyday workflows, securely govern AI agents, and scale automation across the business using a single, unified licensing framework.


Traditionally:
E7 combines these capabilities into a single ecosystem where AI agents can actively participate in operational tasks.
This changes the role of AI from:
“AI helps users complete tasks”
To:
“AI works alongside users to execute tasks and workflows.”

Unlike Microsoft Copilot, which assists users, AI agents are designed to execute tasks and workflows autonomously.
Examples include:
As organisations scale AI usage, Microsoft introduced E7 to ensure AI agents can operate safely, consistently, and within governed enterprise frameworks.
It provides governance and control over AI agents in the same way organisations currently manage employees and user accounts.
Agent 365 enables organisations to:
In practice, Agent 365 extends Microsoft’s Zero Trust security model into AI operations.
This is particularly important for organisations operating in regulated industries or scaling automation across business-critical systems.


Microsoft 365 licensing ranges from entry-level productivity to advanced enterprise security and AI-driven capabilities. Each tier builds on the previous one, with E7 representing the most advanced option for organisations looking to combine enterprise security with Copilot, identity governance, and AI-powered automation at scale.
Extends E5 with:
Microsoft 365 E7 does not replace E5.
Instead, it extends the E5 security foundation for organisations moving toward AI-driven operations.

| Product | Term | Frequency | RRP |
|---|---|---|---|
| Microsoft 365 E7 | Annual | Annual | £979.20 |
| Microsoft 365 E7 | Annual | Monthly | £85.68/month |
| Microsoft 365 E7 | Monthly | Monthly | £97.92/month |
| Microsoft 365 E7 – 3 Year | Triennial | Triennial | £2,937.60 |
| Microsoft 365 E7 – 3 Year | Triennial | Annual | £979.20/year |
| Microsoft 365 E7 – Extended Service Term | Monthly | Monthly | £100.86/month |
| Microsoft 365 E7 – 3 Year – Extended Service Term | Monthly | Monthly | £100.86/month |
| Product | Term | Frequency | RRP |
|---|---|---|---|
| Microsoft 365 E7 (No Teams) | Annual | Annual | £900 |
| Microsoft 365 E7 (No Teams) | Annual | Monthly | £78.75/month |
| Microsoft 365 E7 (No Teams) | Monthly | Monthly | £90/month |
| Microsoft 365 E7 (No Teams) – 3 Year | Triennial | Triennial | £2,700 |
| Microsoft 365 E7 (No Teams) – 3 Year | Triennial | Annual | £900/year |
| Microsoft 365 E7 (No Teams) – Extended Service Term | Monthly | Monthly | £92.70/month |
| Microsoft 365 E7 (No Teams) – 3 Year – Extended Service Term | Monthly | Monthly | £92.70/month |
Pricing shown reflects buyer-level licensing rates for enterprise and bulk procurement scenarios. Larger volume discounts may apply depending on organisation size and agreement type.


It is most suitable when:
E7 is typically not required for organisations still in early-stage Microsoft 365 or Copilot adoption.



We support organisations with:
Our approach ensures organisations are not over-licensed, under-protected, or misaligned with Microsoft’s evolving licensing strategy.
If you are evaluating Microsoft 365 E7, Wizard IT can help you understand:
Our consultants provide guidance across licensing, deployment, AI governance, and Microsoft security integration.

Do you have any questions about any one of our products or managed services? Are you worried about your business’ IT network and would like some advice or guidance?
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