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Windows Central

Technology

Sean Endicott

Office and Microsoft 365 will soon cost more, and it's all Copilot AI's fault

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Microsoft 365 app on Windows 11 with shortcuts to create documents in Word, PowerPoint, Excel, and other Microsoft 365 applictions.

What you need to know

Microsoft 365 Personal and Family plans will soon be more expensive in several regions.
The price increase is due to the addition of Copilot into various Microsoft 365 apps, including Word, Excel, PowerPoint, Outlook, and OneNote.
The addition of Microsoft Designer to Microsoft 365 Personal and Family subscriptions is also a factor in the price increase.

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:

Copilot in Word transforms your writing and reading experience by generating outlines or full drafts, suggesting rewrites to better capture your ideas, summarizing long texts into digestible pieces, and even creating unique images to complement your documents.
Copilot in Excel helps you analyze your data to provide actionable insights and graphs, and generates formulas based on your requirements.
Copilot in PowerPoint enhances your storytelling by generating full outlines with visuals, text, and speaker notes, and allows you to create custom images to make your presentations more engaging.
Copilot in Outlook makes managing emails a breeze by drafting emails based on your intent, providing tips to improve tone and clarity, and summarizing email threads to help you catch up quickly.
Copilot in OneNote takes your notetaking to the next level by helping you organize information, create lists, draft plans, generate ideas, and offers insights into past notes.

Microsoft Designer is 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 for Microsoft's quest to dominate the AI space. This isn't paying more for Copilot Pro, which will remain available for those who need unlimited AI usage, this is Microsoft 365 Personal and Microsoft 365 Family seeing 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 its news 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.

"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 to ZDNet, and it will cost a similar price to what you pay right now for Microsoft 365.