Microsoft has announced that it will bundle AI-powered Office features into Microsoft 365 Personal and Family subscriptions globally, while simultaneously raising prices for these subscriptions by $3 per month in the U.S. This adjustment follows a previous $20 fee for Copilot features in Office apps, which will now be included with the new subscriptions.
Microsoft bundles AI features in 365 and raises prices by $3
Gareth Oystryk, senior director of marketing for Copilot Pro and Microsoft 365, stated, “We know that people are willing to pay for the integration into Microsoft 365.” The aim is to make AI features more accessible to a broader range of users. However, Copilot Pro will remain available for $20 per month for those desiring priority access to new AI models and features.
The price increase for Microsoft 365 will be the first in 12 years, as Oystryk noted, “We’ve never actually raised the price in the US and we’re raising it by $3 a month.” Existing subscribers can opt to retain their current plans without the AI features, if they choose not to pay the additional fee.
To accommodate existing users, Microsoft has introduced two new plans—Personal Classic and Family Classic—available for the next year. These options will offer the old pricing without the added AI features for subscribers who do not wish to transition to the new pricing structure. According to Oystryk, these plans will not receive new innovative features but will continue to receive security updates and minor updates.
As part of the changes, Microsoft is also implementing an AI credits system that gives a monthly allocation of credits for features across various applications, including Word, Excel, PowerPoint, Outlook, and OneNote. Users can use these credits for tasks such as image generation in the Designer app. Copilot Pro will provide unlimited usage of these AI features within a fair usage policy.
Microsoft is also making it easier for users to turn off Copilot in Office apps. Oystryk highlighted feedback that demonstrated users may want to disable the AI assistant in certain situations, such as academic environments. This option will first be introduced in Word, followed by Excel and PowerPoint in upcoming weeks.
Since its introduction in 2013, Microsoft 365 has seen various enhancements, and the addition of Copilot aims to further integrate AI into users’ daily productivity tasks. Starting in October 2024, the Copilot features will become widely accessible, benefitting the estimated 84 million consumer subscribers by enhancing productivity through AI tools.
Microsoft 365 subscribers will receive AI credits that can also be utilized in applications like Microsoft Designer, Paint, Photos, and Notepad. For Microsoft 365 Family subscribers, Copilot access is exclusive to the subscription owner and cannot be shared. Users who frequently engage with Copilot might consider upgrading to Copilot Pro to avoid usage limitations.
Featured image credit: Microsoft
