Microsoft is bundling its AI-powered Office features into Microsoft 365 subscriptions

Microsoft appears to be stepping back from charging Microsoft 365 Personal and Home subscribers another $20 per month to get access to AI-powered Office features. The software giant quietly announced it’s making Copilot Pro features part of its Microsoft 365 Personal and Family subscriptions last week, but only in Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand for now.

“It’s been nine months since we introduced consumers to Copilot in our Microsoft 365 apps via Copilot Pro. We’ve spent that time adding new features, improving performance, and listening carefully to customer feedback,” says Microsoft in a press release spotted by ZDNet. “Based on that feedback, we’re making Copilot part of our Microsoft 365 Personal and Family subscriptions.”

Microsoft is also adding its Microsoft Designer app to Microsoft 365 Personal and Family subscriptions in these select markets. “Microsoft 365 Personal and Family subscribers will receive a monthly allotment of AI credits to use Copilot in Word, Excel, PowerPoint, Outlook, OneNote, and Designer,” explains Microsoft. “The credits will also apply to apps like Paint, Photos, and Notepad on Windows.”

If you have a Microsoft 365 Family subscription in one of these select markets, only the subscription owner will get access to Copilot and it cannot be shared with other family members.

While some Microsoft 365 Personal and Family subscribers are getting more for their monthly subscription, prices are going up in exchange for Microsoft rolling in Copilot Pro.

“To reflect the value we’ve added over the past decade and enable us to deliver new innovations for years to come, we’re increasing the prices of Microsoft 365 Personal and Family,” says Microsoft. “The price increase will apply to existing subscribers upon their next renewal.”

The price increases vary across Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand. In Australia, for example, Microsoft has increased Microsoft 365 Family subscriptions by $4 AUD per month, and Personal subscriptions by $5 AUD. That’s a lot less than the $33 AUD Microsoft wanted for Copilot Pro in Australia previously.

Microsoft has carefully selected markets here for what looks like a trial for price increases to Microsoft 365 Personal and Family that will eventually hit US and European markets. Either way, it’s clear that Microsoft’s Copilot Pro experiment hasn’t worked out. A $20 monthly subscription on top of the Microsoft 365 Personal or Home subscription was always a big ask, and when I tried the service earlier this year I didn’t think it was worth paying $20 a month for.

I’ve asked Microsoft to comment on whether these Copilot changes will appear for Microsoft 365 Home and Family subscribers in the US, and why the company has only selected these markets. Microsoft didn’t respond in time for publication.