Microsoft Ditches Consumer AI Subscription Plan

Microsoft will no longer promote a consumer subscription plan for its artificial intelligence services. Instead, it’s introducing a new bundle that combines AI features with traditional productivity apps in the Microsoft 365 Premium tier. The cost is $19.99 per month, compared to $12.99 each for up to six users and 6 terabytes of cloud storage in Microsoft 365 Family.

The company aims to deliver more than just chat-based AI tools like Copilot Pro. It offers a free version of its assistant, similar to Anthropic, Google, and OpenAI, which also sell paid subscriptions. The new offering provides higher usage limits and enables conversations with Copilot in Office apps like Word, Excel, and PowerPoint.

Microsoft has seen significant growth from consumer subscribers, increasing by 8% in the June quarter to 89 million. Revenue from these products has accelerated for three consecutive quarters, reaching 20%.

Source: https://www.cnbc.com/2025/10/01/microsoft-365-premium-bundle-ai-copilot.html