Microsoft has introduced a new enterprise licence, Microsoft 365 E7, marking the first major addition to the Microsoft 365 enterprise licensing lineup in more than a decade.
Positioned above Microsoft 365 E5, the new offering is designed to combine artificial intelligence, security, identity management and productivity tools into a single platform.
While it is primarily targeted at large enterprises, the announcement highlights an important shift that will impact organisations of all sizes, including SMEs.
In this guide, we explain what Microsoft 365 E7 is, what it includes, and what it means for businesses planning their Microsoft strategy.
Microsoft 365 E7 is a new enterprise subscription that bundles several advanced Microsoft capabilities into one licence, with a strong focus on AI-enabled productivity and governance.
The suite combines:
Microsoft describes the suite as combining “intelligence and trust”, allowing organisations to deploy AI tools while maintaining strong governance, compliance and security.
Microsoft has indicated that Microsoft 365 E7 is expected to become available from 1 May 2026.
The introduction of E7 reflects Microsoft’s growing focus on AI-driven workplaces.
With tools like Microsoft 365 Copilot, employees can already:
However, as organisations scale AI usage, governance becomes critical. Businesses need to manage who can access AI tools, what data they can see, and how AI systems operate within company environments.
That is where the identity, security and compliance capabilities included in Microsoft Entra, Microsoft Defender and Microsoft Purview become essential.
For most SMEs today, Microsoft 365 E7 will likely be more capability than necessary.
Many small and mid-sized businesses currently operate effectively using plans such as:
However, the introduction of E7 highlights several important trends that business leaders should be aware of.
Artificial intelligence is rapidly becoming part of the core productivity tools employees use daily, rather than standalone applications.
As organisations adopt AI tools, protecting sensitive data and controlling access to systems becomes even more important.
With new tiers and additional services emerging, choosing the right Microsoft licensing strategy is becoming a strategic business decision rather than simply an IT choice.
Instead of focusing immediately on upgrading to new licences, most organisations will benefit more from:
Many businesses already have powerful capabilities within Microsoft 365 that are not yet fully adopted.
| Feature | Microsoft 365 E5 | Microsoft 365 E7 |
| Productivity apps | Yes | Yes |
| Security & compliance | Advanced | Advanced |
| AI tools | Optional Copilot add-on | Copilot included |
| Secure foundations for autonomous systems | Not included | Included Entra Suite |
| AI agent management | Not included | Included Agent 365 |
In simple terms, Microsoft 365 E7 builds on the capabilities of E5 by combining AI tools like Microsoft 365 Copilot with enterprise security, identity management and governance in a single licence.
The launch of Microsoft 365 E7 signals Microsoft’s long-term vision: a workplace where AI, security and productivity platforms operate together as a single ecosystem.
While adoption will likely start with large enterprises, the technologies behind E7 will eventually influence how organisations of all sizes use Microsoft 365.
For SMEs, the key is not necessarily adopting the newest licence, but ensuring the right foundations are in place to take advantage of AI, security and productivity improvements as they evolve.
What is Microsoft 365 E7?
Microsoft 365 E7 is a new Microsoft enterprise licence designed to combine AI tools, productivity software, security and identity management into a single platform.
When will Microsoft 365 E7 be available?
Microsoft has indicated that E7 will become generally available in May 2026.
Is Microsoft 365 E7 suitable for SMEs?
In most cases, SMEs will continue using plans such as Microsoft 365 Business Premium or Microsoft 365 E3. E7 is primarily aimed at large enterprises deploying AI at scale.
Does Microsoft 365 E7 include Copilot?
Yes, Microsoft 365 Copilot is included as part of the E7 bundle.