January 17, 2025 – Microsoft has announced today that it is integrating its Office AI capabilities, which were previously launched for enterprise users in November of last year, into Microsoft 365 subscriptions for personal and family use. However, this move comes with a price hike for Microsoft 365 subscriptions in the United States.
The tech giant is offering these AI features as an add-on to Microsoft 365 applications at an additional cost of $3 per month. While existing users have the option to opt-out of the upgrade until next year, new subscribers will automatically receive the new package including Office AI functionalities.

Microsoft has been testing the integration of Office AI into Microsoft 365 subscriptions over the past few months, initially offering it only in select markets such as Australia, New Zealand, and some Asian countries. The company is now expanding the availability of these features to most global markets.
Meanwhile, the existing Copilot Pro subscription remains unaffected by this change and will continue to be offered at its current price of $20 per month. This subscription is targeted at advanced users who want priority access to the latest AI models and early access to new AI features.
For those who do not wish to pay extra for the AI capabilities, Microsoft is providing a plan to maintain their current subscription price without Copilot. “We have developed two new plans, which will actually be introduced next year, called Personal Classic and Family Classic. If users choose to cancel their subscription, they will have the opportunity to select one of these Personal Classic or Family Classic plans,” the company explained.
According to Microsoft, these “Classic” plans are only available to existing Microsoft 365 subscribers and will not include any significant feature updates. “They will continue to receive security updates and minor feature updates, but any other innovative features we offer in the future will not be included in these plans,” the company stated.