Microsoft launches Microsoft 365 Premium, bundling Office and AI for $19.99 a month

Microsoft launches Microsoft 365 Premium, bundling Office and AI for $19.99 a month

Microsoft Launches 365 Premium Subscription with Enhanced AI Features

Microsoft has unveiled its new Microsoft 365 Premium subscription, integrating its Copilot Pro features at a monthly rate of $19.99. This development comes in the wake of a shift towards merging core productivity applications with advanced AI capabilities, marking a significant evolution in the company’s subscription offerings, reports 24brussels.

The Premium subscription will provide users access to Microsoft’s extensive suite of productivity tools, including enhanced AI features such as GPT-4o image generation and voice capabilities. This development allows users to leverage these technologies alongside fullfamily benefits, including Office applications for up to six individuals and 1TB of cloud storage each.

“It’s really going to be our most powerful AI and productivity subscription for any individual,” said Gareth Oystryk, senior director of marketing for Microsoft 365. He emphasized the premium plan’s combination of trusted productivity apps and innovative AI features tailored for professionals, solopreneurs, and high achievers.

With its price mirroring that of OpenAI’s ChatGPT Plus subscription, Microsoft aims to directly compete in the productivity subscription market. Premium will feature the highest usage limits available in Microsoft’s portfolio, which includes access to features such as Copilot Podcasts, Deep Research, and Vision and Actions.

Microsoft has been progressively enhancing its offering since last year, initially introducing the Copilot Pro plan at an additional cost to Microsoft 365 subscribers. The recent changes reflect a greater integration of AI features across Microsoft 365, positioning the subscription as an all-encompassing tool for users looking to maximize productivity.

To further enhance user experience, Microsoft is also incorporating its Researcher and Analyst reasoning agents into Word, PowerPoint, and Excel, thereby improving content generation and data processing capabilities within these applications.

Moreover, subscribers can utilize the Microsoft 365 Copilot features on workplace systems if they log in with their personal Microsoft account, thereby extending the application’s utility beyond personal use. Oystryk indicated that this functionality aligns with employees increasingly bringing personal AI tools to their workplaces.

Despite the expanded benefits, Microsoft has noted that the ability to unlock these enhanced AI features is currently restricted to the account holder of the Microsoft 365 Family or Premium subscriptions. Oystryk acknowledged customer feedback advocating for some sharing options, which the company is actively considering.

Individuals who already subscribe to Microsoft 365 Personal or Family plans will also receive access to new AI capabilities—an enhancement to existing features rather than a complete overhaul of their subscriptions.

Ultimately, the introduction of Microsoft 365 Premium signals the end of the standalone Copilot Pro subscription, which will cease to be available for new purchases. “Copilot Pro is not entirely going away, but we will stop selling it,” Oystryk clarified, although existing users will have a transition plan forthcoming.

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