- Nov, 21 2025
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On November 18, 2025, at its Ignite 2025 conference, Microsoft pulled off a quiet revolution in enterprise security: it bundled its entire Security Copilot suite into Microsoft 365 E5 — at no extra cost. For organizations that have been paying $5 per user per month for access, the move is nothing short of a gift. No more separate licenses. No more budget battles. Just Security Copilot, now built into the fabric of Microsoft’s most comprehensive security subscription, with rollout beginning immediately for existing users and expanding globally over the next 90 days.
What Changed — And Why It Matters
Before this announcement, Security Copilot was a premium add-on — a powerful AI assistant for security teams, but one that required its own licensing, Azure setup, and manual provisioning. Now? It just appears. No consent flows. No configuration. Microsoft says it’ll show up in your tenant with in-product banners and guided onboarding, like a software update you didn’t have to ask for. That’s the kind of frictionless integration that enterprise customers have been waiting for.
Here’s the kicker: every Microsoft 365 E5 customer now gets exactly 400 Security Copilot Units (SCUs) per 1,000 paid licenses, capped at 10,000 SCUs per organization. Smaller companies get proportional access. That’s not just inclusion — it’s scalability. And it’s not just about chat. Microsoft introduced 12 new agents built directly into Defender, Entra, Intune, and Purview workflows. Add those to the 37 already available, and you’ve got over 40 new AI-powered assistants trained to handle everything from phishing triage to malware reverse-engineering.
Agents That Work Like Your Best Security Analyst
Imagine an AI that doesn’t just answer questions — it acts. Security Copilot agents now auto-triage phishing reports, summarize incidents in seconds, and even guide analysts through complex malware analysis. Identity teams get automated access reviews and smarter Conditional Access rules. Data teams can discover sensitive files buried in SharePoint, triage DLP alerts without drowning in noise, and enforce policies across Teams and OneDrive. Endpoint admins? They can now assess how Intune policies affect productivity before rolling them out.
And the integration is deep. Microsoft Defender now talks directly to GitHub Advanced Security. Vulnerabilities? Detected. Fixes? Suggested by Copilot Autofix. Validation? Handled by Defender. It’s a closed loop — from code commit to threat mitigation — without jumping between tools.
Microsoft Purview Gets a Major Upgrade
Perhaps the most underreported part of this rollout is the expansion of Microsoft Purview. E5 customers now get automated bulk remediation of overshared links, scheduled deletion of Teams transcripts containing sensitive data, and DLP controls that block Copilot from processing or generating responses based on restricted content. For compliance-heavy industries — healthcare, finance, government — this isn’t a feature. It’s a lifeline.
There’s also a new data oversharing report in the Microsoft 365 admin center, giving admins a visual map of who’s sharing what, where, and with whom. And for government cloud environments? Enhanced controls now let organizations exclude sensitive files from AI processing entirely. That’s not just security — it’s regulatory compliance baked into the AI layer.
Managed Service Providers Win Too
For Managed Service Providers (MSPs), this change is a game-changer. If you’re an MSP using Security Copilot to manage your clients’ security — whether you’re a customer yourself or managing E5 environments — you no longer need to bill separately for it. Microsoft’s November 18 documentation confirms: “You can enjoy continued access to all agentic and chat experiences” without new licensing hurdles. That means MSPs can offer enterprise-grade AI security as part of their standard E5 package, no extra fees, no billing confusion.
Why Microsoft Did This — And What It Means for the Market
This isn’t charity. It’s strategy. Microsoft is making it impossible for competitors to compete on price. If you’re selling a standalone AI security tool that costs $5/user/month, how do you justify it when Microsoft gives it away for free inside its flagship suite? The move also locks in E5 customers — why switch platforms if your AI security is already built-in, updated, and scaling with your license?
And let’s not forget the psychological win: Microsoft’s messaging — “Enterprise-grade, AI-powered security operations shouldn’t require a separate six-figure contract” — is a direct jab at legacy vendors like Palo Alto Networks, CrowdStrike, and Splunk. It’s not just about features anymore. It’s about accessibility. About removing barriers.
What’s Next? December 1, 2025
The rollout isn’t over. On December 1, 2025, Microsoft will begin rolling out SMB and security updates for Microsoft 365 Copilot globally, available through Leader Cloud for all partners. That’s the next wave — AI assistance for smaller businesses, not just enterprises. And for those wondering about the infrastructure? Microsoft’s RioCloudSync YouTube channel confirmed on November 18 that “for existing customers, of course, you already have the compute capacity provisioned in Azure.” No new servers. No new bills. Just AI, unlocked.
Frequently Asked Questions
How does this affect organizations currently paying for Security Copilot separately?
Organizations already paying the $5/user/month fee will automatically have their Security Copilot access rolled into their Microsoft 365 E5 subscription without any action needed. Microsoft confirmed that billing adjustments will be applied retroactively to November 18, 2025, and customers will see credits reflected in their next invoice. No need to cancel or reconfigure — the service just continues, now included.
What if my organization has fewer than 1,000 users?
SCUs scale proportionally. A company with 250 users receives 100 SCUs (400 per 1,000 users), while a 50-user organization gets 20 SCUs. The 10,000 SCU cap applies only to large enterprises. Smaller businesses still get meaningful access — enough to run daily phishing triage, basic DLP checks, and automated access reviews without hitting limits. Microsoft designed this to be usable, not just theoretical.
Does this include Microsoft Sentinel?
Yes. Microsoft’s official documentation confirms Microsoft Sentinel is now included as part of the Security Copilot integration for Microsoft 365 E5 customers. That means SIEM capabilities, log ingestion, and threat hunting workflows are all covered under the same license. No additional Sentinel licensing is required — a major cost saver for teams previously managing separate SIEM subscriptions.
Can I use Security Copilot in government clouds like GCC High or DoD?
Yes, but with restrictions. Microsoft has added enhanced controls to exclude sensitive files from AI processing in government cloud environments. While the agents are available, they won’t analyze or process classified or restricted content unless explicitly permitted. This ensures compliance with FedRAMP, DoD IL5, and other regulatory frameworks — a critical detail for public sector customers who can’t risk AI hallucinations with classified data.
How does this impact third-party security vendors?
It puts pressure on standalone AI security tools. Vendors offering AI-driven SOC automation or DLP enhancements now face a direct challenge: Microsoft’s offering is cheaper, integrated, and constantly updated. Some may pivot to niche specialties — like threat intelligence or OT security — where Microsoft hasn’t yet focused. Others may integrate with Security Copilot as partners, turning competition into collaboration.
When will non-E5 customers get access to Security Copilot?
Microsoft has not announced plans to extend Security Copilot to lower-tier subscriptions like E3 or Business Premium. The feature remains exclusive to E5, reinforcing its position as the premium security offering. However, Microsoft has hinted that some agent capabilities may trickle down via Microsoft 365 Copilot updates in late 2026 — but nothing is confirmed. For now, E5 remains the gateway.
Trenton Whitworth
Hi, I'm Trenton Whitworth, a sports enthusiast with a passion for tennis. I've been studying and analyzing various sports for over a decade, with a particular focus on tennis. I love sharing my knowledge and insights through writing and have contributed to several publications. My goal is to help others better understand the game and inspire them to enjoy it just as much as I do. I believe that staying active and engaged in sports can lead to a healthier and happier life.