Artificial intelligence (AI) is being added to the consumer version of “Microsoft 365” and its subscription price is being raised for the first time since the product was introduced in 2013.
Microsoft has announced that it’s adding its Copilot AI assistant to the Word, Excel, PowerPoint, Outlook and OneNote applications for consumers who subscribe to its Microsoft 365 suite.
In addition to the AI features, Microsoft is increasing the cost of the software bundle by $3 U.S. per month.
A personal Microsoft 365 subscription will now cost $9.99 U.S. per month and $99.99 U.S. per year, up from $6.99 U.S. a month and $69.99 U.S. each year.
The Microsoft 365 family plan, which can serve up to six people, will cost $12.99 U.S. per month and $129.99 U.S. a year, up from $9.99 U.S. a month and $99.99 U.S. per year.
Existing customers will see the new prices when their subscription renews, according to the company.
Microsoft had 84 million consumer subscribers to Microsoft 365 last year, up 10% from 2023.
Formerly known as Office 365, today’s version of Microsoft 365 is an important source of recurring revenue for the company.
In 2022, Microsoft increased prices on commercial Microsoft 365 subscriptions charged to businesses.
In addition to bringing Copilot into the Microsoft 365 applications, consumer subscribers will gain access to Microsoft Designer, an AI image editing tool.
For a limited time, existing subscribers can switch to 365 plans that do not include Copilot or other AI features.
The stock of Microsoft has increased 9% in the last year to trade at $424.58 U.S. per share.
