Microsoft to Increase Pricing for 365 Suite with Enhanced AI Features
Microsoft has announced an increase in the subscription fees for Microsoft 365. As part of its strategy, the tech giant is trialing a new consumer plan featuring artificial intelligence enhancements in various regions, including Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand.
In an earlier update, Microsoft unveiled advanced AI functionalities for home users via the Copilot Pro plan, alongside offerings for enterprise and business clients through the Microsoft 365 Copilot plan. Now, the company is exploring a fresh consumer subscription model that integrates AI capabilities at a premium price point.
As reported by recent news articles, this innovative plan is under evaluation in regions such as Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand. For instance, in Australia, the new subscription for Microsoft 365 Family with AI features will be priced at $AU179 annually, while the alternative without AI enhancements will cost $AU139 per year.
In the future, Microsoft intends to transition all existing Microsoft 365 subscriptions to this elevated pricing model. Although this adjustment will take effect at the time of users’ next subscription renewal, it’s likely to cause some dissatisfaction among current users.
This new package also grants Microsoft 365 Personal and Family users 60 AI credits each month, which can be utilized across multiple applications, including Word, Excel, PowerPoint, Outlook, Forms, OneNote, Designer, Notepad, Photos, and Paint. Tasks performed in applications, similar to the functionality seen in Microsoft’s Paint for image creation, will deduct one credit. It’s important to note that credits cannot be shared among different users and will reset every month, independent of how many are used.
By opting for a Copilot Pro subscription, you can bypass the AI credit limitations, enabling unlimited access to image generation and other AI functionalities.
While this plan is currently being piloted in select areas, it could potentially expand into additional markets like Europe or the United States in the future.
What are your thoughts on this development?
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