Microsoft has introduced a new subscription tier called Microsoft 365 Premium, which combines its AI assistant Copilot Pro with the full suite of Microsoft 365 Family applications. The new plan is priced at $19.99 per month, directly matching the cost of OpenAI's competing ChatGPT Plus service.
Key Takeaways
- Microsoft 365 Premium combines Copilot Pro AI features and Microsoft 365 Family apps for $19.99 per month.
- The new subscription includes Office apps, 1TB of cloud storage per person for up to six users, and advanced AI capabilities.
- A new feature allows subscribers to use their personal AI license within their workplace Office applications, subject to IT approval.
- The existing Copilot Pro subscription will be phased out and no longer sold to new customers.
New Subscription Bundles AI and Productivity Tools
Microsoft is consolidating its consumer offerings with the launch of Microsoft 365 Premium. This new plan merges the company's most advanced AI features with its established productivity software. For a monthly fee of $19.99, subscribers receive all the benefits previously offered under a Microsoft 365 Family plan and a Copilot Pro subscription.
This includes access to desktop versions of Office applications like Word, Excel, and PowerPoint for up to six people. Each person also receives 1TB of OneDrive cloud storage, totaling 6TB for the entire plan.
According to Gareth Oystryk, senior director of marketing for Copilot Pro and Microsoft 365, the new offering is designed to be the company's most comprehensive package for individuals. It provides integrated AI within the productivity apps, along with the highest usage limits for AI features.
"It’s really going to be our most powerful AI and productivity subscription for any individual," Oystryk said in an interview. "It brings together our trusted collection of productivity apps with Copilot built-in, along with our highest Copilot usage limits and exclusive features."
Positioning Against ChatGPT Plus
The $19.99 price point places Microsoft 365 Premium in direct competition with OpenAI's ChatGPT Plus. While both services offer access to advanced AI models for a similar cost, Microsoft's bundle includes a significant amount of additional software and cloud storage.
Microsoft is emphasizing the value of its integrated ecosystem. Sumit Chauhan, corporate vice president of Microsoft’s Office Product Group, highlighted the company's long history with productivity software.
Competitive Landscape
OpenAI's ChatGPT Plus offers priority access to its latest models, including GPT-4o, along with higher limits on usage and advanced data analysis capabilities. Microsoft's offering adds the full Office suite and substantial cloud storage, positioning it as a more comprehensive productivity package.
Chauhan stated, "Productivity is our DNA, we’re Office. While others will try to replicate us, there is no substitute for the real thing."
The Premium subscription is aimed at individuals who require powerful tools for their work, such as entrepreneurs and professionals. "We created this subscription really for any solopreneur, professional, or high achiever looking to tackle the most demanding productivity tasks with AI at their side," Oystryk explained.
'Bring Your Own AI' to the Workplace
One of the most notable features introduced with this change is the ability for users to apply their personal subscription benefits to their work environment. Subscribers of Microsoft 365 Premium, Personal, or Family plans can now activate Copilot features within the Office applications provided by their employer.
To enable this, an employee simply needs to sign into their work version of Office using their personal Microsoft account. The company states that this process maintains all enterprise-level security, compliance, and data protection protocols, ensuring that corporate data remains separate from the user's personal account.
How It Works
This feature works on desktop and mobile apps for Word, Excel, PowerPoint, OneNote, and Outlook on Windows, Mac, and iPad. It is not currently available for the web versions of Office. Corporate IT administrators will have the ability to enable or disable this sign-in functionality for their organizations.
"We have seen a lot of employees, all over the place, bringing their own AI to work," Oystryk noted. "With Microsoft 365 Premium, along with Personal and Family, you can actually bring Copilot to work with you."
The Future of Copilot Pro and Subscription Changes
The introduction of Microsoft 365 Premium signals the end of Copilot Pro as a standalone product for new customers. Microsoft will stop selling the $20/month AI-only subscription, effectively merging it into the new premium bundle.
"Copilot Pro is not entirely going away, but we will stop selling it," Oystryk confirmed. He added that existing Copilot Pro subscribers will not be automatically moved to the new plan and that a timeline for discontinuing the service for current users has not been set.
Microsoft is also extending some advanced AI features to its standard Personal and Family subscribers. These plans will now include access to GPT-4o for image generation and voice interactions, with higher usage limits than the free version of Copilot.
However, a key limitation remains. For both the Family and the new Premium plans, only the primary account holder can unlock the integrated AI features in Office applications. Oystryk acknowledged customer requests for sharing capabilities, stating, "We definitely have feedback from our customers to offer some kind of sharing, so we are evaluating some options there."