Microsoft 365: Office price increase and mandatory AI subscriptions in sight

The Redmond-based company continues to advance the integration of artificial intelligence into its product line. The group is now testing a new strategy in selected markets in the Asia-Pacific region: previously paid Copilot AI functions will be integrated directly into standard Microsoft 365 Personal and Family subscriptions. The expansion includes countries such as Australia, New Zealand, Malaysia, Singapore, Taiwan and Thailand. Existing subscribers automatically have access to AI features after an update. This marks a significant change from the previous model, where Copilot was only available through a separate and expensive Copilot Pro subscription.

Nine months ago, we launched Copilot in our Microsoft 365 apps through Copilot Pro for consumers. During this time, we’ve added new features, improved performance, and listened carefully to customer feedback. Based on this feedback, we are integrating Copilot into our Microsoft 365 Personal and Family subscriptions.

As ZDNet reports, with the integration, users will receive a monthly allocation of AI credits to use Copilot in Word, Excel, PowerPoint, Outlook, OneNote, and Designer. Credits also apply to apps like Paint, Photos, and Notepad on Windows. However, this expansion is accompanied by an increase in prices. In Australia, for example, the price of the annual subscription increased from AU$139 to AU$179. Microsoft continues to offer a “Microsoft 365 Classic” option for users who don’t need or want AI features. This must correspond in price to the previous offer. However, users must cancel their existing or automatically upgraded subscription and purchase the cheaper option separately. Limited availability in specific markets suggests that Microsoft is testing here before a possible global rollout. This is a typical company approach of first testing new subscription models regionally.

The automatic integration of AI functions has attracted criticism from some users. Concerns are raised about the use of resources on devices and potential problems for academics, particularly graduate students. The latter fear unintentional AI support in their work, which could lead to allegations of academic misconduct. A particularly critical point concerns the fact that the co-pilot functions cannot be completely deactivated. This poses a significant problem for some users, especially if they neither need nor want the AI ​​features.

This development is part of Microsoft’s overarching goal of integrating AI across its entire product ecosystem. Under the leadership of CEO Satya Nadella, the company has invested heavily in AI technologies, including partnering with OpenAI and developing Copilot features. Integrating AI into standard subscriptions could make these tools accessible to a wider audience. Microsoft is likely hoping to strengthen its competitive position in the productivity software market, where AI integration is becoming increasingly important.