Microsoft announced the integration of AI-powered Office features into Microsoft 365 Personal and Family subscriptions, raising prices by $3 per month. This change follows previous testing phases and aims to broaden access to AI tools.
Microsoft 365 integrates AI features and raises prices by $3
Previously, Microsoft 365 subscribers could access Copilot for an additional $20 per month through a separate Copilot Pro subscription. Now, these AI capabilities will be included in the Microsoft 365 subscription for an additional $3 per month. Existing subscribers can choose to opt out of these new AI features and avoid the price increase.
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.” He further explained that Copilot Pro targets power users who seek priority access to the latest AI models and features, indicating that it will remain available at its current $20 monthly rate.
Microsoft is implementing a $3 price increase for Microsoft 365 Personal and Family subscriptions in the United States for the first time in 12 years. Oystryk highlighted that this modest increase brings AI-powered features to all subscribers: “We’ve never actually raised the price in the US and we’re raising it by $3 a month, along with similar amounts in other markets.”
To accommodate subscriber preferences, Microsoft has created two new plans—Personal Classic and Family Classic—available temporarily for existing users. Subscribers opting for these plans during their renewal cycle will retain their current pricing without the AI features. However, these classic plans will receive no major innovations, only security and minor updates.
The new pricing structures will automatically include AI-powered Office features for new subscribers, effective upon the announcement. Existing subscribers can maintain their current subscription plans without the AI upgrades if they choose to opt out.
Alongside these subscription changes, Microsoft is introducing an AI credits system that provides users with a monthly allowance of credits to utilize AI features across Word, Excel, PowerPoint, Outlook, and OneNote. These credits may also be used for image generation in Microsoft Designer and other compatible apps on Windows, such as Paint, Photos, and Notepad. According to Microsoft, Copilot Pro subscribers will have unlimited access based on a fair usage policy.
Microsoft is also implementing options for users to turn off Copilot features in Office apps where necessary. Oystryk noted feedback indicating that some users prefer not to use Copilot, leading to new settings allowing users to toggle its functionality off. This feature will first be available in Word, followed by Excel and PowerPoint in the coming weeks.
The integration of Copilot into Microsoft 365 offers various scenarios to enhance user productivity. For example, users can receive meal preparation help in Word by inputting dietary preferences, while Copilot can assist with budget analysis in Excel. In PowerPoint, users can generate slideshows by providing vacation details, and Outlook can summarize lengthy email threads for quicker access to important information. Copilot in OneNote can organize tasks from a user’s free-form notes.
Additionally, Microsoft Designer will be included in the Microsoft 365 Personal and Family plans, offering enhanced capabilities for image creation and editing. Subscribers can utilize Designer both through integrated apps like Word and PowerPoint and via a standalone web and mobile app. The platform allows users to create images by describing their vision or selecting pre-existing ideas, as well as editing photos to remove unwanted elements using AI technology.
Subscribers to Microsoft 365 Personal and Family will not only gain additional features through the new AI credits but will also benefit from improved productivity and creativity tools throughout their most-used applications.
Featured image credit: Microsoft
