Microsoft is rolling out the ability to build and deploy business apps using natural language through Microsoft Copilot Cowork and Copilot Studio.
This process, where someone tells an AI what to build instead of writing the code themselves, is known as ‘vibe coding’.
It means SMEs can now describe a business problem in plain English and have Microsoft generate a working application, complete with user interface, data structure and hosting infrastructure.
In this article, we’ll explore how it works and how Copilot Credits and usage-based billing are applied, but first, let’s take a look at the potential impact on the wider Dynamics 365 and Power Platform landscape…
Custom Microsoft ‘vibe coding’ apps vs Dynamics 365
For years, businesses have effectively had two choices. They could invest in a comprehensive platform such as Dynamics 365 Sales or Dynamics 365 Customer Service, gaining a powerful, feature-rich solution with forecasting, workflows, reporting and integrations built in. Alternatively, they could implement a custom Power App (model-driven or canvas), built around their specific requirements, often at a lower licensing cost and with greater flexibility.
Now, these custom apps potentially introduce a third option, because organisations can describe a business problem and generate a working application in minutes.
For smaller, well-defined use cases, this creates a new entry point that is faster and potentially cheaper than traditional development approaches. It could be used to test an idea or build a proof of concept before committing to a larger technology investment.
That does not mean Dynamics 365 or traditional Power Apps are going away any time soon. A business running a sophisticated sales operation, managing regulated data, supporting multiple departments, or requiring complex integrations may still be better served by a dedicated Dynamics 365 implementation or a custom Power Platform solution.
Gavin Nixon, Strategy 365 Managing Director, said: “While these full-stack apps are built on Power Platform infrastructure, they are not conventional Power Apps. They use Microsoft-managed Power Platform environments and inherit governance controls, while admins can easily view app usage and access in the Microsoft 365 admin centre.”
Now Dynamics 365 users not only have the benefit of being able to plug something like Sales or Customer Service into Copilot Cowork, but they can build custom apps which integrate with Dynamics 365, all without needing to know how to code.
How to build apps in Microsoft Copilot Studio and Cowork
In Copilot Cowork, users can build apps using the new /app skill (available through the Microsoft Frontier Program, which you have to manually sign up to and enable). Note that you’ll require a Microsoft 365 Copilot licence if you want to use Cowork.
In Copilot Studio, app building is available alongside agents and workflows from the home screen. Rather than starting with a traditional development project, users describe the business outcome they want to achieve, the people who will use the app, the data it needs access to and the actions it should perform.
Copilot then generates a working application, including the user interface and underlying business data structure, including using Work IQ to access company context. From there, users can continue refining the app using natural language, preview how it works and, if required, inspect the underlying code. This means business users can focus on the problem they are trying to solve, while developers still have access to the technical detail when needed.
For example, a business could create an employee onboarding app by describing the processes and tasks involved when a new starter joins the organisation. The resulting application could present onboarding materials, track progress, introduce key team members, show them a map of the building and connect to existing business systems. These apps can connect to organisational data sources through Microsoft connectors, so they can also update records and trigger actions within approved systems across the Microsoft 365 environment.
What developers need to know
These full stack apps are built using open standards and can use Git-backed source control, Microsoft and third-party connectors, Work IQ, plus deployment stages and version isolation, allowing organisations to continue developing and testing new versions without disrupting the live application.
The apps also respect Microsoft Entra identity, existing data permissions and connector policies, helping organisations maintain security and governance controls as apps are created and deployed.
Gavin added: “It’s important to note that although Microsoft mentions Git-backed source control and deployment stages, the current documentation doesn’t appear to confirm that these apps use traditional Dataverse solutions, managed solutions or Power Platform Pipelines.”
Who hosts these new apps?
Apps built in Cowork and Copilot Studio are deployed to a Microsoft-managed host, which uses Microsoft Entra authentication to sign in users and provides the infrastructure required to deploy, run, monitor and manage apps while applying enterprise governance, security and administrative controls.
Hosting, runtime and management of apps are billed through Copilot Credits usage-based billing – more on that below.
How much does a Cowork or Copilot Studio app cost?
Building and using the app both consume Copilot Credits and Microsoft bills Copilot Cowork and Copilot Studio using these credits. Exact costs are difficult to predict because credit consumption often depends on the complexity of the app being created, the amount of iteration during development, and the volume and complexity of work the app performs once deployed.
A traditional SaaS model may have cost something like £X per employee per month regardless of whether they use it, but with this usage-based billing you’d pay according to how much the app is actually used. So, while that answer might sound like ‘how long is a piece of string’ Microsoft has provided some examples…
For a small personal or team app Microsoft estimates about 250-450 credits to build and 10-50 credits per app per month to host/run it, and for a heavy enterprise app it could cost 700-1350 credits to build and approximately 3000-5000 credits per app per month to run it.
Based on these illustrative figures, you might be looking at running costs of a small app being roughly $0.10-$0.50/month and a larger app at around $30-$50/month.
How much do Copilot Credits cost?
1 Copilot Credit = $0.01 via pay-as-you-go billing. However, Microsoft offers several plans where you buy a year’s worth of credits in advance at a discount. 300,000 credits will bag you a 5% discount and 30,000,000 will get you 10% off for example. So the 5% discount would be about $2,850, saving $150.
Copilot Credit capacity packs with 25,000 Copilot Credits per month can also be purchased for £153.80 per month.
Gavin added: “When considering any AI tool, it’s important to factor in credit consumption and API costs on top of any subscription cost. These can escalate if not monitored, which is why Microsoft has developed things like Agent 365 and Copilot controls dedicated to monitoring AI usage.”
You can save if you already have Power Apps Premium
Users who have Power Apps Premium can use apps built in Copilot Cowork under their existing Power Apps licensing, subject to existing request limits. If the users exceed those limits, that’s when Copilot Credits usage-based billing kicks in.
It’s worth noting that usage of AI-powered runtime, such as agents and Work IQ APIs, is not included in these limits and also consumes Copilot Credits.
So, if you’re just using the app to fill in forms, update records or complete checklists, you will likely get away with your existing Power Apps Premium licence at just £15.40 per user per month paid yearly, but if you’re using the apps for asking an embedded AI agent a question, running a Copilot Studio agent or using Work IQ to analyse organisational data, that will likely fall into Copilot Credits territory.
What’s the difference between these Microsoft apps and other apps made with ‘vibe coding’?
Rather than using an alternative solution to generate some code then figure out hosting, deployment, authentication and security for yourself, these apps are deployed to a Microsoft-managed host on Microsoft’s secure infrastructure.
They can link in with all your existing permissions and business apps like SharePoint, Outlook, Excel etc with enterprise-level security controls.
Microsoft’s Cowork and Copilot Studio-built apps are also for business solutions, not for building a public-facing app.
Gavin said: “Instead of asking ‘how quickly can we build the house?’, Microsoft is asking: ‘can the house be insured, maintained, secured, renovated and managed after it’s built?’”
So, unlike with some apps made with alternative ‘vibe coding’ solutions, Microsoft users will be able to answer:
- Where is the app hosted?
- Who can access it?
- Can employees log in securely?
- Can it connect to company data?
- How are updates managed?
- What happens if the creator leaves the company?
- Who can see what data?
Start with the problem, not the tech
Before enabling any AI-powered solution, it’s important to understand the governance and security implications. AI systems work within the permissions and access structures that already exist across your Microsoft environment, so ensuring those foundations are in place should always be the first step.
That’s why we offer an AI Readiness Assessment. The assessment helps organisations understand whether their existing security, governance and data policies are suitable for AI adoption, identifies potential risks, and ensures Microsoft Copilot and related technologies can be introduced safely and responsibly.
It provides an opportunity to discuss the business challenge you’re trying to solve so contact us to discuss your requirements and discover the most cost effective approach for your organisation.