M icrosoft is bundling its AI-powered Office features into Microsoft 365 Personal and Home subscriptions, but it’s also raising prices as a result. Previously, Microsoft 365 sub

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.

According to emails, Australian 365 Family users will also see an increase from AU$139 to AU$179, while 365 Personal subscribers will have a rise from AU$109 to AU$159. That's a 45% price hike, and it's all for AI features and enhancements in apps that's contributing to it.

This eliminates the need for a $20 Copilot Pro add-on to try the AI features in Office apps, but it increases the overall subscription fee. A Microsoft 365 Personal plan now costs

However, new features come with a price increase. The monthly cost will rise by $3, bringing the Personal plan to $10 per month (or $100 annually) and the Family plan to $13 per month (or $130 annually). According to Microsoft, the price increase will come into effect the next time current customers are billed.

Microsoft is upgrading its Microsoft 365 Personal and Family plans with the integration of Copilot features and Microsoft Designer, but these plans are also getting a price increase worldwide.

Key Takeaways Microsoft said its Copilot AI assistant will be added to Microsoft 365 for consumers, allowing users to create content with AI in Word, Excel, Powerpoint and more.Subscribers will receive a monthly allotment of AI credits to spend on these tasks.

Microsoft (NASDAQ:MSFT) announced on Thursday that it has added Copilot AI features to its Microsoft 365 suite for individual users. This move comes a day after the company introduced on-demand AI agents for businesses.