Microsoft Bundles AI Features with Microsoft 365 and Raises Prices

Microsoft is incorporating its AI-powered Office features into Microsoft 365 Personal and Family subscriptions, leading to a $3 monthly price increase. Previously, subscribers needed to pay an additional $20 per month for Copilot Pro to access AI features in Office apps like Word, Excel, and PowerPoint. However, existing users can opt out of the AI features to maintain the previous pricing.

Microsoft has been testing the integration of these features in select countries and is now expanding availability globally. While some may see this move as an acknowledgment that users were unwilling to pay $20 for AI features, Microsoft states that its goal has always been to make these tools accessible to more subscribers.

Copilot Pro and New Subscription Options

The Copilot Pro subscription, priced at $20 per month, will remain available for power users seeking priority access to the latest AI models and early feature releases. “We definitely have a place for Copilot Pro,” said Gareth Oystryk, senior director of marketing for Copilot Pro and Microsoft 365.

For those who do not wish to pay the increased price, Microsoft is offering two new plans, Personal Classic and Family Classic, exclusively for current subscribers during their renewal cycle. While these plans will retain security and minor feature updates, they will not include new innovations introduced in the future.

AI Credits System and Customizable Settings

In addition to these changes, Microsoft is launching an AI credits system for Microsoft 365 Personal and Family subscriptions. This system provides a monthly allocation of credits for AI-powered tools such as image generation in apps like Designer, Paint, and Photos. Copilot Pro subscribers will have unlimited access to these features under a fair usage policy.

Microsoft is also addressing user feedback by introducing settings to toggle Copilot off in Office apps. This feature, designed for users who do not wish to use the AI assistant, is rolling out first in Word, with Excel and PowerPoint updates to follow.

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