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Microsoft 365 Plans Hike Prices Amid AI-Powered Copilot Rollout

Microsoft Introduces Copilot Office with Limited-Time Offer

Microsoft has announced the introduction of Copilot Office, a new AI-powered feature that integrates with Office apps. To ease the transition to the new pricing, Microsoft is offering a limited-time deal for existing subscribers.

Limited-Time Offer

Microsoft hasn’t specified how long this offer will last, but it’s likely to be a year or two to help subscribers adjust to the new pricing structure. New subscribers will not have the option to pay for the Classic plans.

Copilot Usage for Personal and Family Plans

Subscribers on the Personal and Family plans can use Copilot, but they will be limited to 60 AI credits per month, which can be used across all Office apps. These credits can also be used to generate images or text in Windows apps like Designer, Paint, and Notepad. It’s unclear how these credits will stack with the 15 credits offered for free for apps like Designer, or the 50 credits per month for Image Cocreator in Paint.

Copilot Pro Subscription

For unlimited usage and access to the newest AI models, subscribers will need to pay $20 per month for a Copilot Pro subscription.

Pricing History

As Microsoft notes, this is the first price increase for the personal Microsoft 365 subscriptions in the US, which have remained the same since their introduction as Office 365 over a decade ago. Pricing for business plans and other countries has increased before. Pricing for Office Home 2024 ($150) and Office Home & Business 2024 ($250), which do not have access to Copilot or other Microsoft 365 features, remains the same.

Conclusion

Microsoft’s introduction of Copilot Office marks a significant change in the company’s pricing strategy. While the limited-time offer may provide some relief for existing subscribers, the new pricing structure is likely to impact those who rely heavily on Office apps. As the company continues to integrate AI-powered features into its products, it will be interesting to see how this change affects the market and user behavior.

FAQs

Q: How long will the limited-time offer last?

A: Microsoft hasn’t specified how long the limited-time offer will last, but it’s likely to be a year or two to help subscribers adjust to the new pricing structure.

Q: Can new subscribers pay for the Classic plans?

A: No, new subscribers will not have the option to pay for the Classic plans.

Q: How do AI credits work for Personal and Family plans?

A: Subscribers on the Personal and Family plans get 60 AI credits per month, which can be used across all Office apps. It’s unclear how these credits will stack with the 15 credits offered for free for apps like Designer, or the 50 credits per month for Image Cocreator in Paint.

Q: What is the cost of a Copilot Pro subscription?

A: The cost of a Copilot Pro subscription is $20 per month for unlimited usage and access to the newest AI models.

Q: Have prices for Office Home and Office Home & Business increased?

A: No, prices for Office Home 2024 ($150) and Office Home & Business 2024 ($250) remain the same and do not have access to Copilot or other Microsoft 365 features.

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