AI Builder powers many of the intelligent automation capabilities organizations rely on across Dynamics 365 and Power Platform. From processing invoices and extracting document data to analyzing text and running AI-powered workflows, these features help businesses reduce manual work and streamline everyday processes. However, an important licensing change could impact how these automations operate.

Effective November 1, 2026, Microsoft began phasing out AI Builder credits in favor of Copilot Credits. New and renewed eligible Dynamics 365 and Power Platform licenses no longer include seeded AI Builder credits, and AI Builder capacity add-ons are no longer available for new purchases or renewals.

In this month’s tip, we’ll explain what has changed, how to identify your organization’s AI Builder usage, and the steps to take to navigate the transition to Copilot Credits.

Tip summary: What the AI Builder credits retirement means for your organization

Microsoft has begun consolidating AI consumption across AI Builder and Copilot Studio under a shared credit model. AI Builder functionality is not being retired. Organizations can continue using capabilities such as document processing, data extraction, prediction models, and AI-powered prompts with the appropriate credits.

The most important changes include:

• Seeded credits have ended for new and renewed licenses: As of November 1, 2026, new and renewed eligible Dynamics 365 and Power Platform licenses no longer include seeded AI Builder credits.
• Capacity add-ons have been retired: AI Builder capacity add-ons are no longer available for new purchases or renewals as of November 1, 2026.
• Copilot Credits support existing workloads: AI Builder capabilities can continue operating using available Copilot Credits.
• Existing entitlements may continue: Licenses purchased or renewed before November 1, 2026, retain their seeded credits through the applicable contract term.
• Insufficient credits can interrupt automation: AI Builder actions may fail if neither AI Builder credits nor Copilot Credits are available.

Although the November 1 deadline has passed, it does not mean every organization’s AI Builder workloads have stopped working. Your transition timeline depends on your existing licenses, contract terms, and available capacity.

What has changed with AI Builder licensing?

Tip steps: How to manage the transition from AI Builder credits to Copilot Credits

Organizations using AI Builder in Power Automate, Power Apps, or Dynamics 365 should review their current consumption and licensing before their existing entitlements expire.

1. Identify your current AI Builder usage

Start by determining which environments and business processes currently consume AI Builder credits.

In the Power Platform admin center, navigate to:

Licensing > Capacity add-ons

Review the available capacity information and download the AI Builder consumption report.

You can also review AI Builder activity in Power Automate or use the Dataverse AI Event table to identify which models are being used.

Pay particular attention to:

• Power Automate flows using AI Builder actions
• Power Apps connected to AI Builder models
• Document processing and invoice extraction workflows
• AI-powered prompts and text analysis processes

This assessment helps identify business-critical automations that may be affected when existing credits expire.

2. Review your license renewal dates

Next, determine when your organization’s existing AI Builder entitlements expire.

Licenses purchased or renewed before November 1, 2026, may retain seeded AI Builder credits through the end of their applicable contract term.

Review your agreements in the Microsoft 365 admin center or work with your Microsoft licensing partner to confirm renewal dates and existing AI Builder capacity.

Organizations with AI Builder capacity add-ons should also review their expiration dates and plan for replacement capacity.

3. Estimate your Copilot Credit requirements

Once you understand which workloads consume AI Builder credits, estimate the Copilot Credits needed to keep them running.

There is no universal conversion ratio between AI Builder credits and Copilot Credits. Consumption depends on the specific AI capability and usage volume.

The following table highlights common AI Builder capabilities and their Copilot Credit consumption rates.

For example, an organization processing 1,000 invoice pages per month would require approximately 8,000 Copilot Credits for that capability, based on the listed rate.

Use your actual consumption history to estimate monthly requirements and account for seasonal spikes or anticipated growth.

4. Purchase and allocate Copilot Credits

After estimating your requirements, determine how to provision Copilot Credits for your organization.

Microsoft offers several purchasing and billing options, including prepaid capacity and pay-as-you-go arrangements.

Administrators can manage eligible prepaid Copilot Credit allocations through the Power Platform admin center, assigning capacity to specific environments or making it available at the tenant level.

Make sure environments running business-critical AI Builder workloads have access to sufficient capacity.

5. Test workflows and monitor consumption

Before your existing entitlements expire, test AI Builder-dependent processes in an environment with Copilot Credits available.

Verify that important automations continue operating, particularly those supporting financial processing, document extraction, or customer-facing workflows.

If sufficient capacity is unavailable, AI Builder actions may fail with errors such as EntitlementNotAvailable or QuotaExceeded.

Establish monitoring procedures so administrators can identify capacity issues before they disrupt critical business processes.

Tip insights: Best practices for managing Copilot Credits

Beyond preparing for the licensing transition, organizations should consider several practices to manage AI consumption effectively.

• Prioritize critical automations: Identify workflows that directly affect financial operations, customer service, and other essential business processes.
• Monitor consumption regularly: Review credit usage throughout the month to identify unexpected increases or potential shortages.
• Account for shared capacity: Copilot Studio agents and AI Builder workloads may draw from the same Copilot Credit capacity, depending on configuration.
• Plan for peak usage: Estimate capacity based on your busiest processing periods rather than average activity alone.
• Understand monthly resets: Unused prepaid Copilot Credits do not roll over to the following month.
• Review licensing periodically: Reassess capacity requirements as your organization introduces new AI-powered applications and automations.

Taking a proactive approach to credit management can help organizations control consumption, avoid unexpected interruptions, and continue expanding their use of AI.

Why this tip matters

AI Builder often operates behind the scenes, powering automations that employees depend on every day. The transition to Copilot Credits does not eliminate these capabilities, but organizations must understand their existing usage, review licensing, and provision sufficient capacity to prevent disruptions.

Rand Group’s Microsoft experts can help you assess AI Builder usage, evaluate Copilot Credit requirements, and navigate the transition across your Dynamics 365 and Power Platform environments. Contact our team to learn how we can help you maintain your critical automations. And return next month for another Dynamics 365 CE Tip of the Month.