Microsoft has announced the integration of AI-powered tools, including the Copilot assistant, into its Microsoft 365 Personal and Home subscriptions.
These features, previously available through the $20 monthly Copilot Pro subscription, will now be included in Microsoft 365 for an additional $3 per month. While the price hike applies to new subscriptions, existing users can opt for “Personal Classic” or “Family Classic” plans to maintain their current rates without access to AI features.
Copilot Pro remains an option for power users, offering priority access to advanced AI models and new features. Microsoft emphasizes its goal of bringing AI capabilities to a broader audience while accommodating users with diverse needs.
This marks the first price increase for Microsoft 365 subscriptions in 12 years, with similar adjustments being made in other markets globally.
In addition to the new pricing structure, Microsoft has introduced an AI credits system. Subscribers will receive a monthly allotment for AI-based tasks such as image generation in Designer or other creative apps. Unlimited usage of these features is available with Copilot Pro under a fair usage policy.
For users who prefer not to use AI tools, Microsoft is providing an easy way to disable Copilot in applications like Word, Excel, and PowerPoint.
New toggle settings are being rolled out to give users more control over the integration of AI into their workflow, addressing concerns from students and organizations with restrictions on AI usage.
While the AI-powered features aim to enhance productivity and efficiency, the price increase and limited feature updates for classic plans highlight Microsoft’s balancing act between innovation and user affordability.
The move also reinforces Microsoft’s position as a leader in generative AI integration, aiming to cater to a wide range of users while driving the adoption of advanced technologies.
