more like co-pay-a-lot Home Microsoft 365 plans use Copilot AI features as pretext for a price hike "Classic" plans without AI or price increases are only for current subscribers. Andrew Cunningham Jan 16, 2025 2:49 pm | 113 Credit: Microsoft Credit: Microsoft Story textSizeSmallStandardLargeWidth *StandardWideLinksStandardOrange* Subscribers only Learn moreMicrosoft has two announcements for subscribers to its Microsoft 365 Personal and Family plans today. First, you're getting the Copilot-powered AI features that Microsoft has been rolling out to businesses and Copilot Pro subscribers, like summarizing or generating text in Word, drafting slideshows in PowerPoint based on a handful of criteria, or analyzing data in Excel. Second, you'll be paying more for the privilege of using those features, to the tune of an extra $3 a month or $30 a year.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.Current subscribers are also being given an escape hatch "for a limited time." "Classic" Personal and Family plans at the old prices with no Copilot features included will still be offered, but you'll need to go to the "services & subscriptions" page of your Microsoft account and attempt to cancel your existing subscription to be offered the discounted pricing.Microsoft hasn't said for how long this "limited time" offer will last, but presumably it will only last for a year or two to help ease the transition between the old pricing and the new pricing. New subscribers won't be offered the option to pay for the Classic plans.Subscribers on the Personal and Family plans can't use Copilot indiscriminately; they get 60 AI credits per month to use across all the Office apps, credits that can also be used to generate images or text in Windows apps like Designer, Paint, and Notepad. It's not clear how these will stack with the 15 credits that Microsoft offers for free for apps like Designer, or the 50 credits per month Microsoft is handing out for Image Cocreator in Paint.Those who want unlimited usage and access to the newest AI models are still asked to pay $20 per month for a Copilot Pro subscription.As Microsoft notes, this is the first price increase it has ever implemented for the personal Microsoft 365 subscriptions in the US, which have stayed at the same levels since being introduced as Office 365 over a decade ago. Pricing for the business plans and pricing in other countries has increased before. Pricing for Office Home 2024 ($150) and Office Home & Business 2024 ($250), which can't access Copilot or other Microsoft 365 features, is also the same as it was before.Andrew CunninghamSenior Technology ReporterAndrew CunninghamSenior Technology Reporter Andrew is a Senior Technology Reporter at Ars Technica, with a focus on consumer tech including computer hardware and in-depth reviews of operating systems like Windows and macOS. Andrew lives in Philadelphia and co-hosts a weekly book podcast called Overdue. 113 Comments