Microsoft is incorporating its AI-powered Office tools, previously available in Copilot Pro subscriptions for $20 per month, into Microsoft 365 Personal and Home plans for an additional $3 per month.
Existing subscribers can opt to retain their current pricing without AI features through new “Personal Classic” and “Family Classic” plans, which will be available during the renewal process over the next year.
This global rollout follows testing in select markets, allowing broader access to AI functionalities like image generation and enhanced tools across apps such as Word, Excel, and PowerPoint.
Copilot Pro remains an option for power users, offering priority access to advanced AI models and unlimited features under a fair usage policy.
Microsoft is also introducing an AI credit system for users to utilize features like image creation in Designer and other tools. To address varying user needs, Microsoft is adding settings to let subscribers disable Copilot in apps like Word and Excel, catering to preferences or institutional policies.
While some users may welcome the enhanced tools, others may be hesitant about the price increase, especially as Microsoft raises subscription costs for the first time in 12 years.
New subscribers will receive the AI-enhanced plans by default, while legacy users can choose to opt out, though these older plans won’t include future innovations. This strategic move aims to balance accessibility with premium offerings, ensuring Microsoft 365 remains a competitive and adaptive platform.
