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Microsoft 365 consumer subscriptions get AI, price hike

Those who don't want the AI features can move to a 'Classic' plan

Microsoft Copilot AI logo.

Microsoft is rolling out its Copilot and Designer generative AI tools to Microsoft 365 Personal and Family subscribers and raising the subscription price.

The change will make Copilot available in Word, Excel, PowerPoint, Outlook, OneNote and Microsoft’s renamed Microsoft 365 Copilot app.

Similarly, Microsoft Designer, which uses generative AI to make images and assist with editing, will be available with more access to Microsoft 365 subscribers than free users.

Microsoft says subscribers will get a monthly allotment of AI credits to use in Copilot and Designer. The company didn’t share exactly how many credits customers would get, saving only that it “should be enough for most subscribers.”

However, Microsoft plans to keep its Copilot Pro subscription around for heavier users. Copilot Pro costs $27/mo in Canada.

And that brings us to the price changes to the Microsoft 365 Personal and Family subscriptions. Microsoft said it would increase the price of the subscriptions by $3 USD per month. In Canada, the new prices are as follows:

The price increase will come on customers’ next renewal.

Customers who don’t want to pay more for the AI features will be able to switch plans to either Microsoft’s ‘Basic’ plan or to new, limited-time ‘Personal Classic’ or ‘Family Classic’ Microsoft 365 plans. Microsoft said the plans would be maintained “as they exist today,” but they won’t get certain new innovations and features in the future.

Update Jan. 16, 2025 at 1:13pm ET: Added Canadian pricing information.

Source: Microsoft

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