Microsoft has announced that it will integrate AI-driven Office features into its Microsoft 365 Personal and Family subscriptions, with a corresponding price increase. Previously, users who wanted to use Copilot in Office applications like Word, Excel, and PowerPoint had to pay an additional $20 per month for the Copilot Pro subscription. Now, this AI feature will be included in the Microsoft 365 subscription for an additional $3 per month. Existing users can choose not to enable the AI features to avoid the price increase.

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Microsoft stated that they have been testing the integration of AI features into the Microsoft 365 subscription over the past few months. This feature was initially available only in Australia, New Zealand, and some Asian countries, but it has now expanded to most markets. Gareth Oystryk, a Microsoft executive, mentioned in an interview that they have always aimed to provide more users with the convenience of AI features. While the pricing for Copilot Pro remains at $20, it will still serve users who need priority access to the latest AI models.

This price increase is the first for Microsoft 365 Personal and Family plans since 2012, with U.S. users seeing a $3 monthly increase, and similar increases in other markets. Although price hikes often upset consumers, Microsoft has stated that to meet diverse user needs, they will introduce two new plans: "Personal Classic" and "Family Classic." Existing users can choose these classic plans upon renewal to maintain the old pricing without enabling the Copilot feature.

Microsoft has also launched a new AI points system, allowing users to earn a monthly allocation of points in Microsoft 365 Personal and Family subscriptions, which can be used for image generation features in applications such as Designer, Paint, Photos, and Notepad. For users who do not wish to use Copilot, Microsoft provides a simple option to disable it, allowing users to easily turn off Copilot in applications like Word, with Excel and PowerPoint gradually rolling out this option as well.

Key Points:

- 📈 Microsoft integrates AI features into Microsoft 365, with a $3 monthly fee increase.

- 📅 Existing users can choose the "Classic" plan to keep the original price unchanged.

- 🎟️ New AI points system introduced, providing monthly points for image generation and other features.