Microsoft Corporation (MSFT.US) announced the introduction of AI tools for the consumer version of Microsoft 365.

Microsoft Corporation (MSFT.US) announced that it will be integrating artificial intelligence tools into the consumer version of the Microsoft 365 suite, and it will be increasing prices for the first time in 12 years since the subscription service was launched. In a blog post on Thursday, Microsoft Corporation stated that it will be introducing the Copilot AI assistant into applications such as Word, Excel, PowerPoint, Outlook, and OneNote, providing consumers with more intelligent features. This is an important move by Microsoft Corporation to enhance the attractiveness of the Microsoft 365 subscription service. Bryan Rognier, Vice President of Microsoft 365 Consumer Products, stated in the blog post that the monthly subscription fee will be increased by $3 to "reflect the numerous subscription benefits we have added over the past 12 years, and to support future innovations." The adjusted prices are as follows: Microsoft 365 Personal: monthly fee increased from $6.99 to $9.99, annual fee increased from $69.99 to $99.99. Microsoft 365 Family (for up to 6 users): monthly fee increased from $9.99 to $12.99, annual fee increased from $99.99 to $129.99. Existing consumer subscription users will see the new price changes when their subscription is renewed. As of September, Microsoft Corporation had 84.4 million Microsoft 365 consumer subscription users, a 10% increase year-over-year. Microsoft 365, formerly known as Office 365, is a key product in Microsoft Corporation's competition with Alphabet Inc. Class C in the consumer market for productivity tools. However, revenue contributions from the consumer market are lower compared to enterprise sales. In Microsoft Corporation's third quarter of the 2023 fiscal year, Microsoft 365 business products and cloud services accounted for 31% of the company's revenue, while consumer products and cloud services accounted for less than 3%. Microsoft Corporation had previously increased prices for business subscriptions in 2022, and this is the first price increase for consumer subscriptions. In addition to the Copilot AI assistant, subscription users will also have access to the Microsoft Designer image editing tool. For existing subscribers, Microsoft Corporation stated that they can switch to plans without Copilot or AI features within a limited time. These plans will retain current features, but to experience certain new features, subscribers will need to subscribe to the Microsoft 365 Personal or Family versions.