For uniform and standardized user account licensing for Microsoft 365 licenses, Azure Acrive Directory includes group-based licensing.
One or more Microsoft 365 licenses can be configured for each group. Azure Acrive Directory ensures that all user accounts in this group are assigned Microsoft 365 licenses.
New user accounts added to the group will be assigned the configured Microsoft 365 licenses. If a user account is no longer a member of a group, the configured Microsoft 365 licenses are removed from the user account.
Example of group-based licensing in Azure Acrive Directory.