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The Code tab in Microsoft Copilot lets people in your organization build working software from a plain-language description, on their own device or in the cloud. This article describes the controls you use to enable Copilot Code, govern how it's used, audit its actions, and manage spend.
Copilot Code works within your Microsoft 365 environment and is compatible with your existing enterprise governance.
Enable or disable Copilot Code
You control whether the Code tab in Microsoft Copilot is available to your organization. Copilot Code is gated by license and by an organization-level setting, so it appears in the app only after both are in place. You can enable Copilot Code for your organization or turn it off.
Control which features are available
Beyond turning Copilot Code on or off, you can enable or disable specific Copilot Code features—for example, which modes are available to users. Policy is enforced at the organization level, so your settings apply consistently across your users.
| Control | Default state | What it does |
|---|---|---|
| Pre-install Copilot Code components | Off | This policy setting controls whether Copilot Code client components (web components, local runtime, etc.) are installed when the Copilot app starts. |
| Auto-approve setting | On | This policy setting controls whether users can let Copilot auto-approve permissions in Copilot Code instead of confirming each action. |
| Copilot Code execution location | On (cloud only) | This policy setting controls where Copilot Code can run agent sessions: on the user's device, in the cloud, or both. Admins can restrict this to manage cost or data residency, On if the admin has configured billing for Copilot Code. |
| GitHub connection | Off | This policy setting controls whether users can connect a GitHub account in Copilot Code. |
| Allowed Github Connections list | Both | This policy setting controls which GitHub services users can connect to from Copilot Code of the Microsoft 365 Copilot app. It controls both the GitHub connection types that users can select and the specific GitHub domains that the app is allowed to contact. (Both, GitHub.com only, GitHub Enterprise only, None). |
| Organizational Data in Copilot Code | On for cloud; Off for local | This policy setting controls whether Copilot Code can use Microsoft Graph / WorkIQ data (teams, documents, emails, calendar) and plugins as context for building artifacts. |
Manage GitHub connections
Users can optionally connect a GitHub account to work with repositories. As an admin, you can:
- Restrict connections to GitHub accounts associated with your tenant.
Manage identity and billing
Copilot Code uses your organization's Microsoft Copilot identity and billing.
- Identity: A Microsoft Entra (work) account is the default and only required sign-in. Linking a GitHub account is optional.
- Licensing: Microsoft Copilot license controls Copilot Code availability.
- Spend limits: Admins can configure the spending policy to set per-user spend limits and manage who has access to Copilot Code. Copilot Code honors the usage and budget limits you set. Usage counts against your Microsoft Copilot entitlement, and users can see their consumption against that entitlement.
Compliance and manageability
Code is built for enterprise use from day one:
- It's compatible with your existing Microsoft 365 enterprise governance.
- Copilot Code runs with configurable isolation and enforcement levels for code execution.