Office and Microsoft 365 will soon cost more, and it’s all Copilot AI’s fault
The price increase is due to the addition of Copilot into various Microsoft 365 apps, including Word, Excel, PowerPoint, Outlook, and OneNote.
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What you need to know
Copilot is on the way to Microsoft 365, and so is Microsoft Designer. Those additions will bring new features to Microsoft’s productivity suite, but they will also drive up the cost of the now-ubiquitous Microsoft 365. Those with Microsoft 365 Personal or Family subscriptions who are in Australia, New Zealand, Malaysia, Singapore, Taiwan, or Thailand will soon receive new AI capabilities in Microsoft 365 apps and have to pay more for the privilege. It’s not confirmed that these changes will take place in other countries.
Microsoft’s Copilots were already available in several Office apps, but they were limited to Copilot Pro subscribers. Microsoft improved those Copilots over the last nine months, and it is now ready to ship them to more consumers. Here’s what the tech giant listed as on the way to Microsoft 365 Personal and Family subscribers:
Microsoft Designeris now part of Microsoft 365 Personal and Family as well, and it works within apps such as Word and PowerPoint. Those who have a Microsoft 365 Personal or Family subscription will receive credits each month that can be used across various Copilots.
While these features will be useful for some people, I suspect quite a few folks will focus more on the price increase to Microsoft 365. The change will likely worry many, as it shows that everyday users will end up paying forMicrosoft’s quest to dominate the AI space. This isn’t paying more forCopilot Pro, which will remain available for those who need unlimited AI usage, this is Microsoft 365Personaland Microsoft 365Familyseeing a price increase because of AI.
Is the price of Microsoft 365 going up?
Yes. Microsoft 365 Personal and Family subscriptions will soon cost more. At minimum, that’s the case in Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand, but it appears possible the increase will appear across the board as Copilot (and Designer) are integrated with Microsoft 365. Microsoft noted some pricing details in itsnews post:
“To reflect the value we’ve added over the past decade and enable us to deliver new innovations for years to come, we’re increasing the prices of Microsoft 365 Personal and Family. The price increase will apply to existing subscribers upon their next renewal. The price increases vary in each market—visit our website for exact local pricing. For Microsoft 365 Family subscribers, Copilot will be available to the subscription owner and cannot be shared with others.”
When will the price of Microsoft 365 go up?
Even if you’re a market seeing a price increase, you have a bit of time before the change will affect you. Current subscribers will remain at their current rate until their next renewal. At that time, the price will jump up to whatever the new cost is the respective region.
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“I hate AI. Can’t I just use Microsoft 365 without AI and pay less?”
Somewhat surprisingly, the answer to this question appears to be yes. I’m sure Microsoft would be quick to tell you that the best Microsoft 365 experience for users would be one featuring AI, but that will not be the only option. A Microsoft 365 Classic option will be available, according toZDNet, and it will cost a similar price to what you pay right now for Microsoft 365.
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Sean Endicott is a tech journalist at Windows Central, specializing in Windows, Microsoft software, AI, and PCs. He’s covered major launches, from Windows 10 and 11 to the rise of AI tools like ChatGPT. Sean’s journey began with the Lumia 740, leading to strong ties with app developers. Outside writing, he coaches American football, utilizing Microsoft services to manage his team. He studied broadcast journalism at Nottingham Trent University and is active on X @SeanEndicott_ and Threads @sean_endicott_.
