Deploy Microsoft Agent 365 securely and compliantly. Effective June 1, 2026, Microsoft requires foundational security and identity licenses for new Microsoft Agent 365 purchases.
Update 2026-06-29: A mid-month change to the Product Terms on June 15, 2026 expanded the list of qualifying licenses.
Update 2026-07-01: Effective July 1, 2026, Microsoft Defender agent protection capabilities move from free public preview to Microsoft Agent 365 licensing
Summary
- New licensing prerequisites apply to all new Microsoft Agent 365 purchases
- Enterprise customers must have Microsoft 365 E5, or Microsoft 365 A5 for Education
- Frontline Worker users must have Microsoft Defender and Microsoft Purview
- The Microsoft Defender Suite together with the Microsoft Purview Suite also qualifies – both are required, not just one – in Enterprise, Frontline Worker (F5) and Education (Edu) versions
- Small and medium-sized business customers must have Microsoft 365 Business Premium , or the SMB Defender and Purview Suite bundle, which the latest FAQ confirms is required even though it is not yet listed in the Product Terms
- Customers without these licenses will not have key Microsoft Agent 365 capabilities enabled
- Microsoft 365 E7 customers are not affected, since it already includes Microsoft 365 E5 and Microsoft Agent 365
What is changing?
Microsoft is standardizing how customers qualify for Agent 365. From June 1, 2026, every new Agent 365 purchase requires specific foundational security and identity licenses to be in place. The prerequisite is implemented directly in the product terms.
The required license depends on the user type.
- Enterprise customers need Microsoft 365 E5.
- Frontline Worker users need Microsoft Defender and Microsoft Purview.
- Small and medium-sized business customers need Microsoft 365 Business Premium.
Without these licenses, key Microsoft Agent 365 capabilities are not enabled.
On June 15, 2026, Microsoft made a mid-month change to the Product Terms that expands these June 1 prerequisites. Microsoft 365 A5 is now accepted, the Microsoft Defender Suite and Microsoft Purview Suite together qualify (both are required, not just one), and the Education (Edu) versions of both suites are included. For small and medium-sized businesses, the latest FAQ confirms that the SMB Defender and Purview Suite bundle is also required, even though it is not yet listed in the Product Terms.
Also changing: Defender agent protection licensing
Alongside the prerequisite change, a related update takes effect on July 1, 2026. Microsoft Defender agent protection capabilities, which were free during public preview through Microsoft Defender for Cloud Apps and Microsoft Defender for Cloud, now require Microsoft Agent 365. These capabilities are available through Microsoft 365 E7 or as a standalone Microsoft Agent 365 license.
What is Microsoft Agent 365?
Microsoft Agent 365 is a centralized control plane for managing AI agents. It gives IT and security teams a single place to observe, govern, and secure agents across the organization.
Microsoft Agent 365 sits alongside Microsoft 365 E5, which secures users and data, and extends that protection to agents at scale. It is not included in Microsoft 365 E3 or E5. Microsoft Agent 365 is available within Microsoft 365 E7 and as a standalone per-user subscription.
What the prerequisite licenses unlock
The foundational licenses deliver the capabilities Agent 365 depends on:
- Data protection and compliance: advanced classification and auto-labeling of grounding data (Microsoft Purview)
- Threat protection: detection, investigation, and protection for local and cloud agents (Microsoft Defender)
- Device and agent controls: policy enforcement and agent controls on Windows endpoints (Microsoft Intune)
- Identity and access security: network controls and identity protection for cloud and local agents (Microsoft Entra)
What organizations should do now
- Review your current Microsoft 365 licensing against the new Microsoft Agent 365 prerequisites
- Identify users who do not have Microsoft 365 E5, Microsoft 365 A5, Microsoft 365 F5, or Microsoft 365 Business Premium
- Map each user type to its required prerequisite license
- Validate whether Microsoft 365 E7 is the better foundation, since it already includes Microsoft 365 E5 and Microsoft Agent 365
- Plan prerequisite coverage before any new Microsoft Agent 365 purchase on or after June 1, 2026
- Check whether you use Defender agent protection capabilities that were free in preview, since these require Microsoft Agent 365 from July 1, 2026
Ready to review your Agent 365 licensing?
Our Microsoft licensing experts help you assess prerequisite coverage, compare Microsoft 365 E5, Microsoft 365 E7, and standalone options, and align Agent 365 licensing with your wider Microsoft estate. Contact our experts today to plan your Agent 365 licensing with confidence.
Sources
For the announcement of Microsoft Agent 365: New Licensing Prerequisites, please visit: https://microsoftpartners.powerappsportals.com/abs/Blog/?title=New%20licensing%20prerequisite%20for%20Agent%20365.
For useful software licensing information on Microsoft products, please visit: https://www.schneider.im/software/microsoft/.