AI-Enhanced Office Features Now Included in Microsoft 365 Plans

Microsoft Shifts Strategy on AI-Powered Office Tools

In a move to offer more value to its subscribers, Microsoft has decided to retract its additional $20 monthly fee for AI-driven Office functionalities within its Microsoft 365 Personal and Home offerings. Instead, these advanced features are being integrated into the existing Microsoft 365 Personal and Family packages, initially available in regions such as Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand.

“Since introducing Copilot via Copilot Pro in our Microsoft 365 apps nine months ago, we have been refining capabilities, boosting performance, and keenly interpreting user feedback,” stated Microsoft as reported by ZDNet. “This feedback has driven us to incorporate Copilot into our Microsoft 365 Personal and Family subscriptions.”

Designer App and AI Credits Added to Subscriptions

Additionally, the Microsoft Designer application is being included in these specified subscription plans. Subscribers under Microsoft 365 Personal and Family will be allotted monthly AI credits to utilize Copilot across applications like Word, Excel, PowerPoint, Outlook, OneNote, and Designer, along with other tools such as Paint, Photos, and Notepad on the Windows platform.

It’s important to note, however, that within the Microsoft 365 Family package, only the main account holder will receive access to Copilot functionalities, and this access is non-transferable to additional family members.

Pricing Adjustments Reflect Added Value

Even though subscribers are receiving enhanced value, Microsoft has announced a price increase corresponding to the incorporation of Copilot Pro into these plans. Microsoft mentions, “To better reflect the value offered over the past decade and to support ongoing innovation, fees for Microsoft 365 Personal and Family are increasing.” This price adjustment will be applied upon renewal for current users.

These price upticks differ by region: in Australia, the Family plan rises by $4 AUD monthly, and the Personal plan by $5 AUD. Before this adjustment, Microsoft had proposed a $33 AUD per month charge for Copilot Pro alone in Australia.

This regional initiative seems to be a testing ground for future global adjustments, potentially impacting markets in the US and Europe. It’s evident that Microsoft's standalone Copilot Pro proposition did not acquire the expected traction, as paying a $20 addition on top of existing subscriptions was substantial.

Inquiries were made to Microsoft concerning the potential extension of these Copilot changes to Microsoft 365 Home and Family users in the United States, and the rationale for selecting specific initial markets, though Microsoft did not provide feedback before publication.