E7 licence covering the full AI spectrum from May 2026
The era of AI experimentation in enterprises is coming to an end. Microsoft’s new E7 plan, “The Frontier Suite”, spans the entire Microsoft ecosystem. Alongside the new agent platform Microsoft Agent 365, it also includes “Copilot Wave 3”. In addition, new large language models (LLMs) are available: Claude by Anthropic and the latest generation of OpenAI models can be selected as part of a new multi-model strategy. Copilot automatically selects the most suitable LLM. The technology behind Claude Cowork for AI agents is now also included.
A bundle designed to shape the future
Microsoft 365 E7, with or without Teams, is a productivity suite built for organisations led by people, with agents operating at scale. The new bundle combines Microsoft 365 E5 for secure productivity, the Entra Suite for identity and access management, Microsoft 365 Copilot for AI-driven workflows, and Agent 365 as the orchestration layer to manage and scale agents.
All of this is powered by shared intelligence through Work IQ and is designed with security at its core. With Work IQ, agents can securely access extensive organisational knowledge without external exposure, ensuring that all actions are context-aware and aligned with the business environment.
Key benefits for organisations
With E7, one major challenge is eliminated: AI agents operating within Microsoft applications no longer require separate licences. For AI-centric organisations, this results in cost reductions of approximately 15%.
“We strongly welcome E7,” says Sven Heeb, Cloud Solution Architect at Baggenstos. “The new licence significantly reduces the complexity of the licensing landscape. By combining E5 and AI capabilities into a single package, organisations now have no reason to delay adopting AI and gaining competitive advantage.”
Judson Althoff, CEO of Microsoft Commercial Business, adds: “AI is moving from experimentation to sustained, enterprise-wide impact – built on a foundation of intelligence and trust.” To fully realise this value, Sven Heeb recommends a structured assessment of business processes and the most effective AI use cases. “No organisation should view AI as a replacement for human intelligence,” he explains. “However, when closely aligned, the combination of human expertise and AI significantly enhances productivity and customer focus – as we have seen in our Copilot projects for Swiss SMEs.”
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