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Microsoft Licensing 

Microsoft 365 E7 & Agent 365: What’s Launching on 1 May... and Why It Matters

On 1 May 2026, Microsoft 365 E7 becomes generally available, bringing together productivity, security, Copilot and AI agent governance into a single enterprise suite.

At the heart of E7 is Agent 365, a brand‑new control plane designed to help organisations manage AI agents safely, securely and at scale.

This launch represents Microsoft’s official shift from AI as a tool to AI as part of the workforce.

For organisations already exploring Copilot, automation or AI agents, E7 marks the point where experimentation becomes enterprise‑ready.

 

 

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Speak to a Microsoft 365 E7 & Copilot Specialist

Speak to a Microsoft 365 E7 & Copilot Specialist

Microsoft 365 E7 

What Is Microsoft 365 E7?

Microsoft 365 E7 (also called the Frontier Suite) is Microsoft’s new top‑tier enterprise licence, designed for organisations ready to embed AI across everyday workflows — securely and at scale.

It brings together four major components into a single SKU:

  • Microsoft 365 E5 – core productivity, security and compliance
  • Microsoft 365 Copilot – AI embedded across Word, Excel, Outlook, Teams and more
  • Microsoft Entra Suite – advanced Zero Trust identity and network access controls
  • Agent 365 – a unified control plane for managing and governing AI agents

E7 is available from 1 May 2026, priced at $99 per user per month, making it Microsoft’s first new enterprise licence tier since E5 launched in 2015.

m365 E7 The Frontier Suite

Agent 365

What is Agent 365?

Agent 365 is one of the most significant parts of the E7 launch.

As organisations begin deploying AI agents - not just Copilot prompts, but autonomous agents that can take actions, Microsoft has introduced Agent 365 to help IT and security teams stay in control.

Agent 365 provides:

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A Central Registry

of all AI agents across Microsoft and third‑party platforms

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Governance and lifecycle controls

for how agents are created, used and retired

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Security and identity protections

for agents, extending Entra, Purview and Defender

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Visibility and Observability

including performance, behaviour and risk signals

 

In short, Agent 365 treats AI agents like digital workers, with identities, policies and guardrails, rather than unmanaged tools.

Agent 365 is included with Microsoft 365 E7 and is also available separately as an add‑on from 1 May 2026.

 

Why Microsoft Is Launching E7 Now

Microsoft has been clear about the intent behind E7.

Many organisations have already:

  • Trialled Microsoft Copilot
  • Built or purchased AI agents
  • Automated workflows across Teams, SharePoint and Power Platform

What’s been missing is enterprise‑grade governance for agentic AI.

E7 addresses that gap by combining AI capability with security, compliance and identity by design, helping organisations move from pilots to production AI without increasing risk.

Key Statistic / Output
72%
of organisations remain stuck in AI pilot phases
Primarily due to governance and security concerns. (Source: Gartner & Forrester enterprise Copilot adoption research

What this means for Organisations

NHS & Public Sector

For NHS, ALB and wider public sector organisations, the launch of Microsoft 365 E7 is less about “another licence” and more about control, assurance and accountability as AI use accelerates.

Public sector organisations are under increasing pressure to:

- Protect sensitive citizen and patient data

- Meet information governance, audit and regulatory obligations

- Adopt AI responsibly, transparently and consistently

Why E7 Matters in the Public Sector

  • AI governance built in
    Agent 365 enables central oversight of AI agents, helping organisations manage and control AI usage in a way that aligns with public sector governance principles.
  • Security and compliance alignment
    E7 builds on the E5 security and compliance foundation, supporting data protection, identity‑based access and oversight for both users and AI agents.
  • A safer route from pilot to production
    For organisations trialling Copilot or automation, E7 provides a clearer path to scale AI confidently without increasing risk or creating unmanaged “shadow AI”.
  • In practice: E7 supports innovation without compromising trust, which is critical in NHS and public sector environments.

Corporate

For corporate and enterprise organisations, E7 represents a shift towards AI as an operating model, not just a productivity enhancement.

Many organisations are currently:

 
- Using Copilot in pockets of the business
 
- Experimenting with automation or AI agents
 
- Struggling with fragmented governance and oversight

Why E7 Matters for the Corporate Sector

  • A simplified licensing strategy
    For organisations combining E5, Copilot add‑ons and identity/security tools, E7 may offer a more strategic, future‑focused licence position.
  • AI agents with enterprise control
    Agent 365 enables AI agents to be deployed at scale while maintaining controls around data access, identity, behaviour and security.
  • Productivity without increased risk
    By embedding governance alongside AI capability, E7 allows organisations to drive productivity while protecting data, IP and reputation.

Microsoft 365 E7 

What Is Microsoft 365 E7?

Microsoft 365 E7 (also called the Frontier Suite) is Microsoft’s new top‑tier enterprise licence, designed for organisations ready to embed AI across everyday workflows — securely and at scale.

It brings together four major components into a single SKU:

  • Microsoft 365 E5 – core productivity, security and compliance
  • Microsoft 365 Copilot – AI embedded across Word, Excel, Outlook, Teams and more
  • Microsoft Entra Suite – advanced Zero Trust identity and network access controls
  • Agent 365 – a unified control plane for managing and governing AI agents

E7 is available from 1 May 2026, priced at $99 per user per month, making it Microsoft’s first new enterprise licence tier since E5 launched in 2015.

Key takeaway:

  • E3 supports productivity
  • E5 supports secure productivity
  • E7 supports secure, governed AI at scale
Name M365 E3 M365 E5 M365 E7
Core Microsoft 365 apps Check included Check included Check included
Windows & device management Check included Check included Check included
Advanced security & compliance not included Check included Check included
Microsoft 365 Copilot not included not included Check included
AI agent capability not included not included Check included
Agent 365 (AI governance & control) not included not included Check included
Full Microsoft Entra Suite not included not included Check included
Designed for enterprise AI at scale not included not included Check included

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If you’re exploring Copilot, AI agents or automation - or need clarity on how Microsoft 365 E7 compares to E3 and E5 - we can help.

Speak to a Microsoft 365 Specialist