Microsoft 365 Introduces AI-Powered Copilot with $3 Monthly Price Increase

The updated plans add generative AI features but come with limited credits and higher costs, while non-AI tiers remain available for now.

Microsoft 365 Personal and Family plans now include Copilot AI features, increasing monthly costs by $3 and annual costs by $30.
Subscribers to the AI-enabled plans receive 60 monthly AI credits for use across Office apps and Windows tools like Designer, Paint, and Notepad.
Non-AI 'Classic' and 'Basic' plans remain available at current prices, but 'Classic' options are only offered for a limited time to existing customers.
Users of Copilot-enabled plans can disable the AI features in app settings, though some have criticized the lack of a clear opt-in process.
This marks the first price hike for Microsoft 365 Personal and Family plans in the US since their 2013 launch, with changes effective immediately for new subscribers and upon renewal for existing users.