Microsoft has integrated its AI-powered Office features, including Copilot, into its popular Microsoft 365 Personal and Family subscriptions. The move comes with a price increase of $3 per month for US subscribers, while existing subscribers can opt out of the AI features without facing the price hike.
Previously, Copilot Pro was an extra $20 monthly subscription that only provided access to advanced AI-powered Office apps like Word, Excel, and PowerPoint. However, Microsoft is now adding these features to all Microsoft 365 Personal and Family subscribers for a lower premium.
Gareth Oystryk, senior director of marketing for Copilot Pro and Microsoft 365, explained that the goal is to bring this value to as many subscribers as possible. “We know that people are willing to pay for the integration into Microsoft 365,” he said. However, Microsoft has also maintained a separate plan for power users who want priority access to the latest AI models and early access to new features.
To accommodate existing subscribers who don’t want to pay extra for the AI features, Microsoft is introducing two new plans: Personal Classic and Family Classic. These plans will only be available through renewal cycles, and if subscribers cancel their current plan, they can choose one of these plans without additional cost. However, these plans won’t include any of Microsoft’s big new features.
Microsoft is also introducing a new AI credits system that allows users to purchase credits for image generation in apps like Word, Excel, PowerPoint, Outlook, and OneNote. The system works across most of Microsoft’s AI-powered consumer experiences and includes a monthly allotment of credits within Microsoft 365 Personal and Family subscriptions.
Users can now easily toggle off Copilot in Office apps if they choose not to use the AI assistant or have policies against it. The feature is being rolled out to Word first, followed by Excel and PowerPoint in the coming weeks.
Microsoft has raised prices for its Microsoft 365 Personal and Family subscriptions for the first time in 12 years, but existing subscribers can opt out of the AI features without facing a price increase.
Source: https://www.theverge.com/2025/1/16/24345051/microsoft-365-personal-family-copilot-office-ai-price-rises