Microsoft Integrates AI Features into Office and Increases Microsoft 365 Prices

MICROSOFT:

Microsoft Integrates AI into Microsoft 365, Raises Prices by $3. Microsoft is incorporating its AI-powered features into Microsoft 365 Personal and Family plans, but this comes with a price increase. Previously, users had to pay an additional $20 per month for Copilot Pro, which provided AI features in Office apps like Word, Excel, and PowerPoint.

Now, these AI capabilities are being included in the regular Microsoft 365 subscription for an extra $3 per month. Existing subscribers can choose to opt out of the AI features to avoid the price increase.

After months of testing AI-powered Office apps, Microsoft is expanding access to most global markets, a feature previously available in select countries. Microsoft justifies the price hike by noting that it aims to make AI features accessible to more users, without reducing the $20 monthly price for Copilot Pro, which will continue to offer early access to new AI features and priority access to the latest models.

ALL IN ONE PLAN:

This price adjustment, which marks the first increase in Microsoft 365 Personal and Family subscriptions in 12 years, will apply to US customers, with similar adjustments in other regions.The price hike will be automatically applied to new subscribers, but existing users can opt for “Personal Classic” or “Family Classic” plans to avoid the increase, though these plans won’t include any new major features.

Along with the price changes, Microsoft is introducing a new AI credits system, giving subscribers a monthly allowance to use for image generation and other AI-powered features across Microsoft apps like Word, Excel, PowerPoint, Outlook, and OneNote. Copilot Pro subscribers will have unlimited access to these features.

Lastly, Microsoft is adding a new feature that allows users to turn off Copilot in Office apps if they prefer not to use it, with this option rolling out first in Word and soon for Excel and PowerPoint.