Seat-based pricing
In short
Seat-based pricing is when software is charged per person who uses it, usually a fixed monthly or yearly fee for each user. Many business AI tools, such as Microsoft 365 Copilot and GitHub Copilot Business, are sold this way.
- Also called
- Per-seat pricing, Per-user pricing, Seat licence
- Topic
- The AI business
- Level
- Beginner
A company buys one "seat" for each employee who needs the tool. The bill grows with headcount, not with how much each person actually uses it. That makes costs easy to predict, which finance teams like.
GitHub charges $19 per granted seat per month for Copilot Business and $39 for Copilot Enterprise1. Microsoft lists Microsoft 365 Copilot Business in the UK at £19.32 per user per month on a monthly plan, with a cheaper annual option3.
AI strains the model because every request costs the seller money to run. A heavy user and a light user pay the same, but the heavy user costs far more to serve. Microsoft's 2026 annual report says cost of revenue in its productivity segment rose because of AI infrastructure "to support Microsoft 365 Copilot seat and usage growth"4.
So many vendors now mix seats with metered usage. Each GitHub Copilot Business seat includes 1,900 AI credits a month, pooled across the company, and extra use can be billed per credit12. Salesforce sells Agentforce through a per-user licence, per conversation, or per action, side by side5.
Seat pricing is not the same as usage-based pricing, where you pay only for what you consume. Many AI products now sit somewhere between the two.
Example
A 100-person firm buying Copilot Business pays for 100 seats. Those seats come with a shared pool of 190,000 AI credits a month, so the developers who use it most can draw on what lighter users leave2.
Why it matters
It decides whether your AI bill is fixed or swings with use. As AI agents do more of the work, vendors are moving away from charging per human.
Questions people ask
What is a seat in software pricing?
A seat is a licence for one named user. A company pays for as many seats as it has people using the product, whether or not each person uses it a lot. GitHub, for example, prices Copilot Business "per granted seat per month"1.
Is seat-based pricing better than usage-based pricing?
Neither is better in general. Seats give a predictable bill; usage pricing tracks actual consumption, so light users cost less and heavy users more. Many AI tools now combine them, such as GitHub Copilot seats that include a monthly allowance of AI credits12.
How much does Microsoft 365 Copilot cost per user?
For UK businesses, Microsoft lists Microsoft 365 Copilot Business at £19.32 per user per month on a monthly subscription, before VAT, with a lower promotional price on annual plans in the second half of 20263. Prices change, so check Microsoft's page.