Microsoft has announced its first price increase for Microsoft 365 in 12 years, attributing the rise to the introduction of Copilot AI capabilities across its suite of applications. Effective immediately, users will see the integration of Copilot in popular apps such as Word, Excel, PowerPoint, Outlook, and OneNote. This move aims to make advanced AI capabilities more accessible to a broader audience.
The price adjustment affects both the Microsoft 365 Personal and Family plans. The Personal plan will see an increase from $6.99 to $9.99 per month, while the Family plan will rise from $9.99 to $12.99 per month. The new pricing reflects the addition of Copilot, which offers users a monthly allotment of 60 AI credits. These credits are utilized each time Copilot executes a task, such as generating text, creating tables, or editing images.
For users seeking unlimited Copilot access without credit concerns, Microsoft offers a Copilot Pro add-on. This add-on removes the need for a separate $20 fee to experience AI features in Office apps, though it does increase the overall subscription cost. Notably, the Family subscription tier restricts Copilot access solely to the subscription owner.
Options for Existing Subscribers and Future Plans
Existing subscribers who prefer not to adopt Copilot can choose Microsoft 365 Personal Classic or Microsoft 365 Family Classic for the next 12 months. However, the duration these classic subscriptions will remain available is currently under evaluation by Microsoft.
“Microsoft is assessing the length of availability of these subscriptions for customers and will share more in the coming month,” – Microsoft
Microsoft’s decision to update its pricing structure is driven by the desire to introduce new innovations and enhance current offerings. The company emphasizes that this adjustment “reflects the extensive subscription benefits that we’ve added over the past 12 years and enable us to deliver new innovations for years to come.”
Author’s Opinion
Microsoft’s introduction of Copilot AI into the Microsoft 365 suite marks a significant step in making advanced AI tools accessible to the masses, though at a higher cost. The price increase, while substantial, seems justified by the potentially transformative features of Copilot. However, this strategy may raise concerns among users about the value proposition, especially for those less inclined to use these advanced capabilities. As Microsoft navigates these changes, the balancing act between innovation and customer retention will be crucial.
