The Article Tells The Story of:
- Microsoft bundles AI features in Office 365 with a $3 price hike.
- Classic plans let current users avoid the increase but miss new features.
- Copilot Pro stays for advanced users at $20 per month.
- New AI credits system launches for enhanced usage.
Microsoft is introducing AI-powered features to its Microsoft 365 Personal and Family subscriptions, raising prices by $3 per month in the U.S. These features, previously part of the $20-per-month Copilot Pro subscription, will now be available to all users. However, existing subscribers can opt out of the AI tools to avoid the price hike by switching to new “classic” plans.
The AI Integration and Price Changes In Microsoft
It has been testing AI features in Office apps such as Word, Excel, and PowerPoint in select markets. Now, the company is rolling out these features globally. According to Gareth Oystryk, senior marketing director for Microsoft 365, the goal is to make AI tools accessible to more users while balancing affordability.
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The price increase marks the first adjustment for Microsoft 365 Personal and Family plans in 12 years. In addition to the U.S., similar price hikes will apply to other markets. New subscribers will automatically get the AI-powered version of the subscription.
Classic Plans for Existing Subscribers
To ease the transition, Microsoft is offering “Personal Classic” and “Family Classic” plans. These plans allow current users to continue at their existing rates without AI tools. However, these classic plans won’t receive future innovations, limiting them to basic security updates and minor improvements.
For users who rely on advanced features or want priority access to new updates, Copilot Pro will remain available at $20 per month. This plan offers unlimited AI usage under a fair usage policy, making it ideal for power users.
AI Credits System and User Flexibility
Microsoft is also introducing an AI credits system, which works across apps like Word, Excel, and PowerPoint. These credits allow users to perform tasks such as generating images in Designer or using AI tools in Paint and Photos.
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To address privacy and usability concerns, Microsoft has added a toggle to turn off Copilot in individual apps. This feature, rolling out to Word first and later to Excel and PowerPoint, ensures users can control their AI experience.
What This Means for Consumers
Microsoft’s decision to bundle AI tools into Microsoft 365 signals a significant shift in how productivity apps integrate advanced technologies. While the price increase may deter some, others might find the expanded AI capabilities worth the extra cost. The introduction of classic plans offers a temporary middle ground, but these plans lack future innovations, potentially nudging users toward the pricier options.
As Microsoft continues to refine its offerings, users will need to weigh the benefits of enhanced tools against the cost of staying up to date. Whether you embrace the AI-powered future or stick to classic plans, Microsoft’s move marks a pivotal moment in the evolution of productivity software.
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