Microsoft 365 Adds Copilot AI, Raises Subscription Costs

Microsoft’s efforts to make money from its significant investments in generative AI are finally catching up with customers.

Microsoft is apparently planning adjustments to its Microsoft 365 subscription in some locations to make Copilot available to more users. According to reports, the Redmond-based tech giant has begun bundling the Copilot AI assistant, which is available across several programs like Word, Excel, PowerPoint, and Outlook, with the subscription. This new feature is not free of charge, since the corporation is believed to have raised the cost of its cloud-based service in those locations. It is unclear whether Microsoft intends to implement the same tactic in other nations as well.

Copilot’s Microsoft 365 subscription on The Wall Street Journal revealed on Thursday that the giant of technology has begun to roll out a new feature with its standard Microsoft 365 subscription in Australia and several Southeast Asian countries. This move allegedly does not need any user action, and the AI chatbot cannot be excluded from this service.

In typical scenarios, the introduction of a new feature would have been a positive change; however, the company has purportedly raised the price of the subscription in these regions, likely to offset the cost of Copilot. This means that, unlike the United States, India, and other countries, these regions do not have the choice of whether or not to use the AI features.

The study cited Alistair Fleming, an Australian YouTuber, as an example of Microsoft’s aggressive campaign to get people to try out AI technologies. Fleming, who produces his video screenplays in Word, apparently receives reminder notifications from Copilot after each line. According to reports, the AI assistant’s logo would appear with a statement stating that it can assist the user with their writing.

Microsoft’s 365 service, which includes popular apps like Word, PowerPoint, Teams, and Excel, now includes Copilot. The AI assistant, which uses technology from ChatGPT maker OpenAI, in which Microsoft has invested approximately $14 billion, is being integrated with these apps. The company already charges enterprises $30 per month per user for Copilot. Microsoft is also competing with other companies such as Apple, Google,

“It was very eager to be used, which irritated me as a user,” Fleming told the publication. Furthermore, he claimed that his Microsoft 365 subscription had risen from AUD 11 (about 6.84 USD) to AUD 16 (about 9.95 USD). It’s unclear whether the corporation sent out emails informing customers about the change and price increase.

This is most likely an experimental deployment, although it is unclear if it will be extended to other regions. Copilot functionalities are not included with the ordinary Microsoft 365 subscription in India. Users can access the AI assistant by paying about 30 USD (Rs 2,495) monthly for the Copilot 365 add-on. The company’s competitor, Google, uses a similar add-on technique.

Despite the fact that it employs technology like ChatGPT 4, Microsoft considers Copilot to be a competitor.

According to the Wall Street Journal, the Copilot chatbot had far less app downloads than ChatGPT, with 37 million against 433 million from May 2023 to mid-December 2024.

Copilot’s standalone software has received mixed reviews, and the business has encountered a public relations struggle due to a Copilot AI tool dubbed Recall, which has prompted privacy and security concerns. However, Recall is not a 365 function; it is a Windows 11 Copilot tool that also uses AI technology. 

In Australia, the monthly cost of 365 is increasing by 45%, from A$11 to A$16. Microsoft’s enterprise customers in the United States can expect a 5% increase in 365 Copilot pricing beginning in April for those who pay monthly. For those who pay annually, the monthly fee of $30 per user remains the same.