(Credit: Microsoft)
If you're on a Microsoft 365 Personal or Family subscription, prepare for a heavy dose of Copilot AI—and a corresponding price hike.
After testing the Copilot-integrated 365 bundle in a few overseas markets in November, Microsoft is now adding Copilot to Word, Excel, PowerPoint, Outlook, OneNote, and other apps in the 365 suite to make its AI capabilities "more accessible to a wider audience."
This eliminates the need for a $20 Copilot Pro add-on to try the AI features in Office apps, but it increases the overall subscription fee. A Microsoft 365 Personal plan now costs $9.99 per month, up from $6.99, and the 365 Family plan costs $12.99 per month, up from $9.99.
This is Microsoft 365's first price hike in 12 years, and the company says it "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."
Existing Microsoft 365 Personal and Family subscribers who don't want Copilot can select Microsoft 365 Personal Classic or Microsoft 365 Family Classic for the next 12 months. "Microsoft is assessing the length of availability of these subscriptions for customers and will share more in the coming month," the company says.
The revised bundles have a couple of limitations, though. Users will receive a monthly allotment of 60 AI credits for Copilot, which ticks down every time they ask Copilot to execute a task, such as generating text, creating a table, or editing an image. Those who don't want to worry about credits will need the Copilot Pro add-on.
Another drawback is that the Family subscription tier limits Copilot access to the subscription owner. It can't be shared with other plan members.
Editors' Note: This story was updated with information about Microsoft 365 Personal Classic.