In May 2024, Microsoft introduced a new AI-based reminder feature called Recall. This feature raised concerns among privacy advocates, leading to significant backlash. The outcry was so intense that Microsoft had to revise the feature to include an opt-in option and the ability to delete data.
Despite this experience, Microsoft seems to have learned little, as evidenced by its recent Copilot initiative. This move has caused frustration among Microsoft 365 users and confusion among observers.
In mid-January, Microsoft integrated its AI assistant, Copilot, into its Office products. This integration came with a significant price increase for Microsoft 365 subscribers, with subscription prices reportedly rising by at least 30% globally.
Microsoft justified the price hike by citing the additional AI features. However, users were not impressed, as Copilot’s performance and usefulness have been less than stellar. Many users expressed dissatisfaction with being forced to pay for features they found lacking.
Tech journalist Ed Bott succinctly noted that users are not willing to pay for AI features that do not significantly enhance their experience with the applications. Critics have pointed out that only a small portion of Copilot’s output is useful, and free alternatives often offer better performance.
Many users, especially those using Microsoft Word or Excel for personal or simple professional tasks, question the need for a poorly functioning AI assistant, especially when it comes with an additional cost. Microsoft did not include an opt-in option for Copilot, and the assistant is automatically enabled. Currently, it can only be disabled in Word, and even then, the option is well-hidden. Other Microsoft 365 applications do not have a disable button yet, but it is expected to be added in February.
There were also issues with the Copilot integration and the price increase. Users were shocked to receive notifications that their subscription price had increased from 10.00 euros to 1300.00 euros due to a decimal point error by Microsoft. Additionally, the new Microsoft 365 Copilot logo was poorly integrated, making letters and numbers difficult to read on many screens.
Many users were surprised by the new prices and features, with notifications either not being sent or arriving too late. Despite the criticism, Microsoft is expected to benefit financially. According to Ed Bott, even if 10% of the 87 million subscribers cancel their subscriptions due to the price increase, Microsoft would still gain an additional 1.7 billion US dollars annually from the remaining subscribers.
In summary, Microsoft’s introduction of Copilot has been met with significant criticism due to its performance, the lack of an opt-in option, and the substantial price increase. Despite these issues, the company is likely to profit from the changes.
