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SAN FRANCISCO: Microsoft is changing how it charges for its software for the first time in two decades, moving to bill customers with a pay-as-you-go model each time they use its new AI agent.

The change, prompted by the soaring cost of artificial intelligence, came on Tuesday as the company launched Copilot Cowork — an AI “agent” that can independently carry out office tasks like drafting documents, building spreadsheets and sending emails.

The tool still requires a paid Microsoft 365 Copilot subscription, but now every task it runs is billed separately, based on how much computing power it consumes.

Copilot Cowork is Microsoft’s take on so-called “agentic” AI, a wave that has gripped Silicon Valley and turned the simple chatbot into an assistant capable of acting on a user’s behalf.