Carter-Williams will have a torn labrum repaired in Colorado, general manager John Hammond said Monday in a release. The estimated recovery time for the 11th overall selection in the 2013 draft is three months.
Carter-Williams averaged 11.5 points, 5.1 rebounds, and a team-high 5.2 assists in 54 games this season, including 37 starts.
Most recently, Carter-Williams came off the bench with young forward Giannis Antetokounmpo taking over more of the ball-handling responsibilities in the starting lineup.
"We're going to miss Mike, understanding what he's done for us all season," coach Jason Kidd said before Monday night's game at Chicago. "Been asked to come off the bench, we've had him start, averaging over 11 points, rebounding the ball for us, assists, and then defensively, he's always taken the assignment of one of the best perimeter guys."
The third-year guard has been dealing with discomfort in his hip since late December, a person with knowledge of the situation told The Associated Press on condition of anonymity because the team has not yet fully discussed details of his condition.
Carter-Williams spent the next two months trying to play through it and was hoping to finish the season before addressing the injury, but doctors informed him he needed to surgery now, the person said.
"I think Mike being young enough, he's going to bounce back and be stronger from this surgery," Kidd said.
Carter-Williams' scoring average was the lowest of his career, but he did shoot a career-high 45 percent from the field.
Carter-Williams came to the Bucks from Philadelphia last season as part of a remaking of Milwaukee's backcourt in a deal that sent Brandon Knight to Phoenix. The former lottery pick was the Rookie of the Year in 2013-14 for the 76ers.
The loss of Carter-Williams is the latest setback for a Bucks backcourt that has also been without veteran Greivis Vasquez for most of the season because of right ankle surgery.