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Licensing woes.

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Posted on by uvarvu

I work in a small organisation (around 25 employees). I was previously able to build an internal chatbot and publish it to Teams using Copilot Studio which was great. But now when I try to edit the chatbot (by navigating to the agent and clicking on the knowledge source for example) I see the message "Upgrade your licence to start using knowledge". I select start trial, a verifying browser dialogue appears and then I see a further dialogue which states that I already have a licence. I'm then quickly redirected back the copilot studio home page where I see list of agents. If I try again the cycle repeats. If I build a new agent from scratch, I see the same problems.

Does anyone know what might be happening here? And can someone confirm exactly which licences I need? Usage is very low, so PAYG style options are what I need. My knowledge source is an Azure OpenAI search service and this all works fine; it's the Copilot Studio end where everything is going wrong. I'm the only person in the organisation that needs access to Copilot studio and everyone else will be consumers. All agents will always be internal.

Regards.

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Vish WR 3,507 on at

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@uvarvu

Yeah this is a known licensing loop, pretty frustrating when it happens.

What's likely going on your tenant is might have a previous Copilot Studio trial that's either expired or half-provisioned, so it detects "you already have a licence" but can't actually activate anything, and just kicks you back to home.

Fix first: go to M365 Admin Center → Billing → Licences, find the Copilot Studio trial, remove it completely, then try activating a fresh one.

If that doesn't work, raise a support ticket with Microsoft — this redirect loop is a known backend provisioning issue and they can reset it manually on their end.

For licensing going forward — you as the maker need a Copilot Studio licence (~$200/month). Your 24 consumers on Teams don't need separate licences if they're already on M365. And since your usage is low, look into the PAYG option via Azure — you pay per message instead of a flat monthly fee, which makes way more sense for your scale.

Vishnu WR

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Power Platform Guy 216 on at

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@uvarvu,

Your agent fails because knowledge sources now require paid capacity

Trial license alone is no longer enough

You already have access — but no Copilot Credits attached

Enable PAYG → issue will immediately resolve

How to Enable

Go to Microsoft 365 Admin Center

Copilot → Settings → Pay-as-you-go billing

Enable billing for Copilot Studio

License : https://learn.microsoft.com/en-us/microsoft-copilot-studio/billing-licensing

☑️Accept as Solution to help others 💙 A Like is appreciated ❓Tag @PowerPlatform Guy for any queries

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CU03060821-1 2 on at

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Thank you for your replies. Just to see how much I was spending, I looked at the cost analysis in Azure, it comes to around 16 pence (10 US cents!?) per month.

Do I really need the maker licence that costs ~$200/month as part of this resolution? We're only a small company and we can't afford to shell out that much!

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