Everything you need to know about the new E7 Microsoft 365 tier, including features, pricing, and release date

Microsoft has announced a new premium AI bundle for Microsoft 365 as the company continues to drive customers to its Copilot tool.

'Microsoft 365 E7: The Frontier Suite' combines Microsoft 365 E5 with Microsoft 365 Copilot and Agent 365. It's underpinned by Work IQ, the intelligence layer that connects enterprise data and organization-specific information with AI tools.

Customers will also be given access to Microsoft's advanced security tools including Defender, Entra, and Purview, which it updated last year with AI agent management in mind.

Work IQ is bringing new features to the productivity suite as part of 'Wave 3' of Microsoft 365 Copilot, which includes enhanced chat experiences and the new Anthropic-powered Copilot Cowork.

Indeed, Microsoft 365 Copilot is also getting a refresh under the hood, with the newest releases from Anthropic and OpenAI now included as model options. This includes support for Claude in mainline chat for customers in the Frontier program.

Enterprises can expect to pay more for Microsoft 365 E7, with costs of $99 (£73.65) per user, per month. However, Microsoft stated that this is a lower overall cost than businesses would face buying all the included features separately.

To date, the tech giant has offered two distinct tiers for enterprise users, E3 and E5.

E3 users get all the staple applications and features one can find in Microsoft 365 - Word, Excel, PowerPoint, and OneDrive storage capabilities. E5, meanwhile, boasts advanced security features and a few new applications such as Power BI Pro.

Microsoft 365 E3 is $36 (£27) per user, per month, while the E5 upper tier will set you back $57 (42.80).

Microsoft 365 E7: The Frontier Suite and Agent 365 will be made generally available on 1 May. At launch, Agent 365 can be purchased as a standalone extra for $15 (£11.20) per user, per month.

Microsoft eyes Copilot gains

The launch of the new bundle comes as Microsoft looks to continue driving enterprise adoption of its flagship Copilot tool.

Microsoft 365 Copilot launched in late 2023, and the company has since rolled out a host of new features, integrating AI capabilities within core product ranges and, more recently, launching agentic AI features.

In its 2025 Annual Report, Microsoft claimed Copilot had reached more than 100 million monthly active users. It’s worth noting, however, that these figures include both enterprise and consumer metrics.

In January this year, Microsoft CEO Satya Nadella also boasted that Copilot use was surging, growing “nearly 3x year-over-year” during an investor call.

Despite an apparent optimistic outlook for the firm, reports over the last year have pointed to sluggish uptake and usage. In early February, it was suggested that just over 3% of Microsoft 365 and Office 365 users who use Copilot Chat pay for it.

Meanwhile, reports from The Information in December 2025 claimed Microsoft sales personnel were struggling to meet growth targets due to lackluster demand. The publication noted this had prompted cuts to quotas of up to 50% across the year.

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