Microsoft has announced its first price increase for Microsoft 365 in 12 years, attributing the rise to the introduction of Copilot AI capabilities across its suite of applications. Effective immediately,

Microsoft has been testing adding AI-powered Office apps, the most important feature of Copilot Pro, into the Microsoft 365 subscriptions in recent months. What was previously only available in Australia, New Zealand, and a number of countries across Asia is now expanding to most markets worldwide.

This raises the price of a Microsoft 365 Personal subscription from $7 a month or $70 a year to $10 and $100; a family subscription goes from $10 a month or $100 a year to $13 a month or $130 a year. For current subscribers, these prices go into effect the next time your plan renews.

The changes are part of an effort on the companies’ part to boost the adoption of their AI tools among business users. Microsoft ships an AI assistant called Copilot as part of its Microsoft 365 productivity suite. Google, in turn, offers the Gemini machine learning feature bundle to users of its rival Workspace suite.

Microsoft introduces a consumption-based pricing model for its Microsoft 365 Copilot AI assistant. This new service allows businesses to pay based on

Microsoft is taking a bold step forward in the enterprise AI space with its new Microsoft 365 Copilot Chat. This updated service introduces AI agents that can automate repetitive tasks, alongside a pay-as-you-go pricing model,

According to a new blog post from Microsoft, Microsoft 365's Personal and Family plans have been bundled with Copilot and priced up to roughly $3 a month. The latest monthly cost is $9.99, up from $6.