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Microsoft Raises Prices for Microsoft 365 with Office AI Features

Microsoft Bundles AI-Powered Office Features into Microsoft 365 Subscriptions

Microsoft has decided to bundle its AI-powered Office features, Copilot Pro, into Microsoft 365 Personal and Home subscriptions, but with a price increase.

Bundling Copilot Pro

Previously, Copilot Pro was a separate subscription that cost $20 per month and offered additional AI features inside Office apps like Word, Excel, and PowerPoint. However, Microsoft is now integrating these AI features into the Microsoft 365 Personal and Home subscriptions for an additional $3 per month. Existing subscribers can opt out of the AI features and not suffer the price increase, though.

New Plans for Existing Subscribers

For existing Microsoft 365 subscribers, Microsoft has introduced two new plans: Personal Classic and Family Classic. These plans will only be available to existing subscribers and will not get the new AI features. However, they will still receive security updates and minor feature updates. These plans will only be available for the next year, after which they will no longer be an option.

Microsoft is also introducing a new AI credits system that will be available across most of its AI-powered consumer experiences. With this system, users will have a monthly allotment of credits to use on things like image generation in the Designer app or in apps on Windows like Paint, Photos, and Notepad. Copilot Pro users will have unlimited usage of all of these AI features, based on a fair usage policy.

Easy Turn Off Option

Microsoft is also making it easy for users to turn off Copilot in Office apps if they don’t want to use the AI assistant or have restrictions from their school or work environment. Users can toggle off Copilot in the settings menu.

Rationale Behind the Change

In an interview, Gareth Oystryk, senior director of marketing for Copilot Pro and Microsoft 365, explained that the company wanted to bring the value of AI features to more subscribers. He emphasized that power users who want priority access to the latest AI models and early access to new AI features can still opt for the Copilot Pro subscription, which will not change in pricing.

Conclusion

In conclusion, Microsoft is bundling its AI-powered Office features into Microsoft 365 Personal and Home subscriptions, with a price increase of $3 per month. Existing subscribers can opt out of the AI features and remain on their current pricing plan. Microsoft is also introducing a new AI credits system and making it easy for users to turn off Copilot in Office apps if needed.

FAQs

Q: Will existing subscribers get the new AI features?
A: Yes, existing subscribers can get the new AI features, but they will have to opt-in and pay an additional $3 per month.

Q: Will Copilot Pro still be available?
A: Yes, Copilot Pro will still be available for power users who want priority access to the latest AI models and early access to new AI features.

Q: What about the classic plans?
A: The classic plans will no longer be an option after one year, but existing subscribers will be able to switch to the new plans if they want the AI features.

Q: How does the AI credits system work?
A: With the AI credits system, users will have a monthly allotment of credits to use on various AI-powered experiences. Copilot Pro users will have unlimited usage of these features, based on a fair usage policy.

Q: Can I turn off Copilot?
A: Yes, users can easily turn off Copilot in Office apps by going to the settings menu.

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