New licensing prerequisite for Agent 365

New licensing prerequisite for Agent 365: Microsoft 365 E5 required for new purchases starting June 1, 2026.

Impacted audience

Partners supporting Agent 365 customer engagements.

Effective June 1, Microsoft is introducing Microsoft 365 E5 as a new license prerequisite for new Microsoft Agent 365 purchases. This update is intended to help customers have the foundational security, identity, compliance, and management capabilities required to support core Agent 365 functionality.

For new Agent 365 purchases beginning June 1:

• Enterprise customers must have Microsoft 365 E5.
• Frontline worker (FLW) users must have Microsoft Defender and Purview (F5 level).
• Small and medium-sized business (SMB) customers must have Microsoft 365 Business Premium.

Customers without these prerequisite licenses may not have access to certain Agent 365 capabilities. This update doesn't change Microsoft 365 E7 customer engagements, as Microsoft 365 E7 includes Microsoft 365 E5, Agent 365, Microsoft 365 Copilot, and Microsoft Entra Suite.

Partners can use this change as an opportunity to review licensing requirements early in Agent 365 discussions, identify customers who may need prerequisite licenses, and position the appropriate Microsoft security and productivity foundation based on customer needs.

Next steps

For more guidance, refer to the Frontier Transformation partner hub and the Agent 365 FAQ.