Yes, Microsoft has increased the prices for its Microsoft 365 Personal and Family subscription plans by $3 in the United States. Thus, the “Personal” plan now costs $99.99 per year or $9.99 per month, and the “Family” plan costs $129.99 per year or $12.99 per month.
You will pay more to use Word, Excel, PowerPoint, Outlook, and other apps and services because Microsoft is now bundling Copilot AI access into the apps.
In the past, you had to purchase a separate $20 subscription on top of the Microsoft 365 plan you’re already paying to access the chatbot AI in the apps, but now, the company will make you pay an extra $3 a month to access Copilot.
The company has been testing bundling its Microsoft 365 apps with Copilot for some time in different regions, such as Australia and New Zealand, but now, the new offering and prices to the United States and other markets around the world.
How do the new Microsoft 365 subscription prices affect customers?
The new price increase applies to everyone, new and existing users. However, if you’re an existing customer, you will be able to opt out of the AI offering, keeping your previous payment rate of $69.99 per year or $6.99 per month for the “Personal” plan and $99.99 per year or $9.99 per month for the “Family” plan.
Can I keep the previous Microsoft 365 plan pricing?
Microsoft isn’t making it easy, but if you’re an existing customer who has the automatic renewal option enabled on your Microsoft account, you will have to cancel the subscription, and as you do this before the subscription is actually canceled, the company will give you the option to choose the “Personal Classic” or “Family Classic” plans without the AI capabilities, which will allow you to keep the service at the same price rate as before.
It’s important to note that new customers won’t be able to choose between AI-powered and classic plans. This is only for existing customers.
How to access Copilot on the Microsoft 365 apps?
If you’re already a Microsoft 365 subscriber, Copilot is already available on your account as part of your plan at no extra cost. The price increase will happen in the next billing cycle. If you don’t see the Copilot button on Word, Excel, or any of the apps, restart them. You also have to ensure you’re using the latest version of the apps.
You can check for updates by opening Microsoft Word > File > Account, clicking on “Update options,” and choosing the “Update Now” option.
The easiest way to confirm that Copilot is available in your subscription is by opening a blank Microsoft Word document online and looking for the “Copilot” button in the toolbar.
What are AI Credits with Copilot on Microsoft 365 apps?
AI Credits are tokens to access AI features across the Microsoft 365 and Windows apps. In other words, processing each action using AI costs money, in this case, one token or one AI Credit.
According to the company, Microsoft 365 Personal and Family subscribers will receive 60 AI Credits each month. However, the Family plan has a caveat. Only the account owner receives the credits, which cannot be shared with other members.
One credit will allow you to perform one task with AI on Word, Excel, PowerPoint, Outlook, Forms, OneNote, Designer, Notepad, Photos, and Paint.
If you use chatbot AI often, the company recommends switching to Copilot Pro, which will receive more credits but doesn’t specify the amount.
These AI Credits will always reset on the first day of each month, regardless of the billing cycle.
How do I disable Copilot on the Microsoft 365 apps?
At the time of this writing, Word, Excel, PowerPoint, and Outlook are some of the apps that come with Copilot enabled by default, and there’s no option to turn this feature off.
However, Microsoft has confirmed that it’s working to add a setting to disable Copilot. In the coming weeks, it will start with Microsoft Word and then expand to Excel and PowerPoint. The company may also add the setting to the remaining apps.
It’s important to note that turning off Copilot in the former Office apps will not make the subscription cheaper. Microsoft is working on this feature for special cases, such as disabling the feature for students and complying with policies in environments that don’t accept AI.
What are your thoughts on the price increase and Copilot limitations? Let me know in the comments.
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