Microsoft Expands AI Features in Microsoft 365, Introduces New Pricing Structure
Microsoft has announced a significant update to its Microsoft 365 Personal and Family plans, integrating AI-powered features at a more accessible price point. Previously, users had to subscribe to Copilot Pro for an additional $20 per month to access these AI capabilities. Now, Microsoft is offering these features for just $3 more per month on top of existing subscription costs.
This move marks the first price increase for Microsoft 365 Personal and Family plans in 12 years. However, the company is providing options for current subscribers who may not want the AI enhancements. Existing users can opt out of the AI features to avoid the price hike, maintaining their current subscription costs.
In a bid to make AI more accessible, Microsoft is expanding the availability of these features from limited regions to most global markets. This strategy aims to put AI tools in the hands of a broader user base, potentially revolutionizing how people interact with Microsoft’s suite of productivity applications.
For power users, the Copilot Pro subscription remains available at its original price, offering advanced AI capabilities for those who require it.
Alongside these changes, Microsoft is introducing new “Classic” plans for both Personal and Family tiers. These plans will exclude major feature updates but will continue to receive security patches and minor improvements, catering to users who prefer a more stable, unchanging experience.
A novel AI credits system is also being rolled out for Microsoft 365 users. These credits can be used across various Microsoft apps to access enhanced AI-powered features, providing flexibility in how users engage with the new technology.
Recognizing that not all users may be comfortable with AI integration, Microsoft is implementing new settings to disable Copilot in Office apps. This feature is currently being rolled out to Word, Excel, and PowerPoint, allowing users to customize their experience according to their preferences.
This comprehensive update reflects Microsoft’s commitment to integrating AI technology into its core products while maintaining options for users with varying needs and comfort levels with artificial intelligence.