Microsoft Drops AI Pricing After Consumer Backlash

Microsoft has made a significant change to its Copilot Pro AI features after consumers expressed dissatisfaction with the pricing. The company is now bundling Copilot Pro into its Microsoft 365 subscription, effectively eliminating the need for a standalone $20/month subscription.

This move comes as a response to customer feedback and shows that Microsoft is willing to adapt to user preferences. By integrating Copilot Pro into its existing subscription model, Microsoft can make AI-powered features more accessible to consumers without increasing costs.

The changes are currently limited to users in Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand, but the company plans to roll out these updates globally in the future. This approach allows Microsoft to test new pricing models and strategies in select regions before implementing them on a larger scale.

The move can serve as a lesson for Apple, which is also exploring AI-powered features in its software platforms. With $20/month being considered too high by consumers, it’s likely that Apple will need to reassess its pricing strategy if it plans to charge for certain AI features. By integrating premium features into existing bundles, like Apple One, Microsoft suggests a more user-friendly approach may be the way forward.

As users weigh in on this change, one comment highlights the importance of adapting pricing strategies to consumer needs. The author advises Apple to consider a similar model, allowing users to pay for specific AI-powered features rather than bundling them into higher-priced subscription plans. This approach could make AI-powered tools more appealing and accessible to a wider audience.
Source: https://9to5mac.com/2024/11/07/microsoft-just-learned-its-lesson-about-overcharging-for-ai-features/