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’s Office has been an iconic product, with billions relying on it to accomplish their work. However, in 2022, the brand made a surprising decision to rebrand itself. Microsoft Office was renamed Microsoft 365 Office.

Microsoft 365 app has been rebranded to Microsoft 365 Copilot. While the change feels unnecessary, it brings significant AI-driven updates and UI improvements.

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.

Microsoft revealed a corporate user tier of its Copilot assistant on Wednesday, with a pricing structure based on consumption. TakeAway Points: Microsoft will bill businesses for Microsoft 365 Copilot Chat according to the kind of work their workers do and how often they use it.

Google announced that it was doing away with a separate upcharge for its Gemini AI features in Workspace and forcing you to pay for it instead whether you want AI or not. Today, Microsoft is following suit,