Copilot comes to Microsoft 365 Personal and Family but at a cost
Microsoft is expanding access to its AI-powered Copilot features to Microsoft 365 Personal and Family subscribers, but this expanded availability comes with a price increase. While previously only available through the $20/month Copilot Pro subscription, core Copilot features are now integrated directly into Microsoft 365 apps like Word, Excel, and PowerPoint for an additional $3 per month.
This move follows months of testing in select markets and effectively bundles AI-powered Office features into standard subscriptions. However, existing subscribers who wish to opt out of the AI features can avoid the price hike.
Microsoft argues that this change reflects its long-term strategy of bringing AI capabilities to a wider audience, rather than admitting a lack of interest in the higher-priced Copilot Pro offering. "We know that people are willing to pay for the integration into Microsoft 365," stated Gareth Oystryk, senior director of marketing for Copilot Pro and Microsoft 365, in an interview with The Verge. He clarified that Copilot Pro will remain available for "power users" who desire priority access to the latest AI models and early access to new AI features.
Classic plans for existing subscribers
To accommodate existing subscribers who don't want the AI features, Microsoft is introducing "Personal Classic" and "Family Classic" plans. These plans will be available during the renewal cycle and will allow current subscribers to maintain their existing price point without Copilot in Office apps. However, these "Classic" plans will reportedly only receive security updates and minor feature updates, excluding any major new innovations.
In addition to the subscription changes, Microsoft is launching a new AI credits system. This system provides a monthly allotment of credits within Microsoft 365 Personal and Family plans, which can be used for AI-powered features like image generation in apps like Designer, Paint, Photos, and Notepad. Copilot Pro subscribers effectively have unlimited access to these features based on a fair usage policy.
Finally, recognizing that some users may not want or be allowed to use AI features, Microsoft is implementing an option to turn off Copilot within Office apps. This toggle feature is rolling out to Word first, with Excel and PowerPoint to follow in the coming weeks. This addresses feedback from users who want more control over the AI integration.
