Microsoft 365 for private users now includes the AI chatbot Copilot, which has led to a price increase of about 30%. This affects both the Single and Family subscriptions. The Microsoft 365 Personal subscription will now cost 99 Euros per year, up from 69 Euros (10 Euros instead of 7 Euros monthly). The Family option’s price will increase from 99 to 129 Euros annually (13 Euros instead of 10 Euros monthly).
With this change, users can use the Copilot AI in applications like Word, Excel, PowerPoint, Outlook, and OneNote for tasks such as text generation. Copilot is an AI chatbot based on OpenAI’s ChatGPT 4 model. Additionally, both subscription packages now include Microsoft Designer, an AI-powered image editing tool.
However, these subscriptions do not provide unlimited AI access. Instead, there is a monthly AI credit quota, which is used to account for the AI services consumed. Microsoft estimates that the monthly quota should be sufficient for most subscribers. Unused credits do not roll over and expire at the end of each month. Those needing more AI services can subscribe to the Copilot Pro model, which currently costs 22 Euros per month.
Existing subscribers will only face the price increase upon their next contract renewal. They have the option to switch to a different model if they do not need AI services or want to avoid the price hike. For a limited time, they can choose the Microsoft 365 Single Classic or Microsoft 365 Family Classic models, which offer the previous features at the old price. These models will continue to be available but will not include “certain new innovations and features,” according to Microsoft.
To switch, users must follow the instructions in the support document. They need to cancel their current subscription under “Manage” and then “Subscription” and select one of the other models. Last week, Microsoft 365 price increases were announced for private users in countries like Australia and New Zealand, and now it affects users in this region as well.