Welcome to this Cloud Wars Agent and Copilot Minute. In these discussions, I’ll be analyzing opportunities, impact, and outcomes possible with AI; today’s focus is an experiment on Copilot Cowork costs that is informing my company’s approach going forward.
Highlights
00:34 — Microsoft’s announcement of Copilot Cowork was exciting, as it promised seamless integration with Microsoft data and tools, which is particularly beneficial for finance and R&D departments. Responding to the recent transition of Copilot Cowork to a pay-per-credit model, I urged my team to test it thoroughly before the grace period ended.
01:34 — Our FP&A director conducted a test using Copilot Cowork, which cost 2.2 million credits at list price, equating to $22,000 for one job. Her team then found a cheaper method, reducing the cost to 170,000 credits, or $1,700, but even the optimized version was still expensive. This issue is not specific to Microsoft or Copilot Cowork but a broader trend in AI pricing, where flat fees with usage included are replaced by metered compute.
03:35 — We need to seek similar cost-saving opportunities but approach them as developers rather than end users. This means using AI coding agents to assist in building pipelines, pulling data, and creating decks, with AI handling specific tasks like analysis and summarization. Everyday users can still benefit from Copilot and Claude, but the heavy-duty, long-running AI tasks should be managed by experts who understand how to optimize AI usage.
04:49 — AI agents are still valuable, but the pricing reality necessitates a more strategic approach. Everyday users should not be handed a blank check to let AI agents figure things out on their own.
More CIO and AI Agent Insights:
- How Microsoft WorkIQ Solves AI’s Corporate Knowledge Problem
- Governance, Billing Considerations With the Always-On Microsoft Scout
- 4 Requirements to Drive Results That Go Beyond ‘AI Theater’
- Copilot’s Advantage vs. Stand-Alone Chatbots
For a 36-Hour Immersion into the FY28 Priorities that define Partner Success in the AI Era, join us at the AI Business Solutions Partner Executive Summit, running August 3-4, 2027, in Renton, WA. Register today.
Kenny Mullican
CIO
Paragon Films
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