Microsoft is directly integrating its AI-powered Copilot capabilities into Microsoft 365 Personal and Family subscriptions, marking a strategy shift and increasing consumer pricing.
These AI enhancements were previously available for $20 per month as part of the standalone Copilot Pro subscription, but they will now cost an additional $3 per month for Microsoft 365 subscribers.

Copilot integrates advanced AI abilities into popular Office apps like Word, Excel, PowerPoint, Outlook, and OneNote. Features include generating drafts, data analysis, visual creation, and content summarization. The subscription now also includes Microsoft Designer, an AI-powered picture editing tool. While new subscribers will automatically acquire these AI features at the updated price, existing subscribers can opt-out by selecting "Classic plans" that exclude Copilot and retain the original pricing.
This is the first price adjustment for Microsoft 365's consumer plans since their launch 12 years ago.
Microsoft 365 Personal now costs $9.99 per month (or $99.99 per year), while Family costs $12.99 per month (or $129.99 annually). The new pricing applies immediately to new members while existing users will see it during their renewal cycle.
The introduction of Copilot reflects Microsoft's goal to expand AI integration into its products. Gareth Oystryk, senior director of Copilot Pro, emphasized the company's intent to make these features accessible to more users.
Despite this push, the original Copilot Pro subscription is still available for $20 monthly. It offers users unlimited AI usage and priority access to new capabilities.

Microsoft has included mechanisms for turning off Copilot in Office programs to accommodate varying user preferences. These improvements also address input from students and professionals with privacy or compliance concerns about AI usage.
With these changes, Microsoft aims to balance innovation and affordability, ensuring AI features are accessible while providing flexibility for users who prefer the traditional space.