On 1 May 2026, Microsoft will introduce Microsoft 365 E7. This is the most significant licensing shift since E5 launched in 2016. In this blog, we explore why you should move to Microsoft 365 E7 and how we can support you on the journey.
E7 is not simply a new stock keeping unit (SKU). It represents a turning point. AI becomes:
- Standard, with Copilot included for everyone
- Governed, with Agent 365 built in
- Secure, with identity and protection layers unified
- Operational, with agents that act as digital workers across the business
Across the industry, a consistent message has emerged:
E7 is the first full stack platform designed for enterprise scale AI.
What this means for you
For UK organisations, it also provides a major opportunity to simplify, consolidate and move AI from pilot phase to everyday operations.
What’s included in E7?
A unified bundle that replaces multiple separate licences
E7 includes:
- Microsoft 365 E5
- Microsoft 365 Copilot
- Microsoft Agent 365
- Entra ID Governance and Entra Suite capabilities
- Intune, Purview and Defender
- Verified ID Premium
Purchased separately, these items total around £92 per user.
E7 consolidates everything into a single licence priced at £78 per user.
What this means for you
This represents the largest licensing simplification since E5 was introduced.
Copilot becomes standard for every user
With E7, Copilot is included as part of the platform. It is no longer an optional add on. Every worker gains access to:
- Copilot in Word, Excel, Outlook, Teams, OneDrive, Loop and Forms
- Agent Mode in Word and Excel
- Intelligent Recap for meetings
- Microsoft 365 Agents
- Work IQ and Viva insights
- SharePoint and Whiteboard Copilot
- Graph grounded data integration
What this means for you
This means you no longer need fragmented Copilot add on licences.
AI support is included at the foundation level for the entire workforce.
Agent 365. The layer enterprises were missing
The introduction of Microsoft Agent 365 is the most significant part of E7 from a governance perspective.
Earlier generations of Copilot gave individuals an assistant. E7 introduces fully governed agents that automate processes, complete tasks and interact with systems and data.
Agent 365 delivers the governance and oversight required for this shift. It includes:
- Agent Map for visibility of all agents operating across the business
- Agent Identity for controlled access and authentication
- Agent Compliance for activity logging and auditing
- Agent Management for creation, permissions and retirement
- Agent Monitoring for behavioural tracking
- Agent Registry for a complete directory
- Agent Work IQ for understanding impact and productivity
What this means for you
With these controls in place, you can finally treat agents like digital employees with identities, permissions, monitoring and policies.
This is essential for secure and responsible AI adoption.
Security and identity integrated from the start
Operational AI requires strong identity controls and secure perimeter management.
E7 includes the full Entra governance stack:
- Entra Private Access
- Entra Internet Access
- Entra ID Governance
- Verified ID Premium with Face Check
What this means for you
Every action made by a user or an agent is validated, approved and governed.
Identity becomes the anchor for safe AI operations.
Why you should consider E7 today
Based on customer discussions and Microsoft guidance, three themes stand out:
1. Consolidation and simplification
Many organisations currently manage a mix of:
- E5
- Copilot subscriptions
- Entra add-ons
- Security tools
- Compliance tools
- Third party platforms
What this means for you
E7 consolidates these into one clear licensing structure and often does so at a lower cost per user.
2. Moving from AI pilots to operational AI
AI success is no longer measured by experimentation.
Agent 365 allows organisations to:
- Deploy workflow automation safely
- Build process focused agents that integrate with internal systems
- Ensure compliance and security controls are maintained
- Deliver measurable business value
What this means for you
E7 finally provides the governance framework that enterprises have been missing.
3. Creating a future ready roadmap
E7 helps organisations:
- Align licensing renewals
- Co-term estates
- Standardise AI governance
- Strengthen security posture
- Deploy agents at scale with confidence
What this means for you
This is no longer only a licensing conversation. It’s a strategic decision about the future of work.
How we support your move to E7 and your AI journey
As organisations in the UK accelerate their AI adoption, we’re guiding customers through four key areas:
1. Licensing strategy and optimisation
We analyse your estate, model the impact of moving to E7 and help you simplify your licensing landscape.
2. AI governance for Copilot and agents
We help you build:
- Identity frameworks for agents
- Access governance
- Data boundary policies
- Monitoring and compliance models
3. AI readiness and roadmap development
We work with you to identify:
- Processes suitable for automation
- Departments that will benefit first
- Risks and required controls
- Change management and adoption needs
4. Deployment, adoption and value measurement
We ensure E7 delivers real outcomes, not just technology enablement.
