- Microsoft 365 Premium merges Copilot Pro and Microsoft 365 Family at $19.99/month.
- Consumers gain access to enterprise-level AI reasoning agents.
- Microsoft bets on AI integration to drive faster adoption and growth.
Microsoft is reshaping how it sells artificial intelligence to everyday users. On Wednesday, the company announced it will stop promoting its standalone Copilot Pro subscription and instead launch Microsoft 365 Premium, a $19.99 monthly plan that combines AI tools with its popular productivity apps.
From Copilot Pro to 365 Premium
Earlier this year, Microsoft introduced Copilot Pro at $20 per month, giving consumers access to advanced AI features. Separately, its Microsoft 365 Family plan costs $12.99 per month, offering cloud storage and access to apps like Word, Excel, and PowerPoint for up to six users. The new Microsoft 365 Premium tier effectively merges both, delivering more value at a slightly lower price point.
“Other AI tools stop at chat — we deliver that plus so much more,” said Yusuf Mehdi, Microsoft’s consumer marketing chief. While Microsoft isn’t discontinuing Copilot Pro, the company is clearly steering users toward Premium.
Added Value With AI Agents
The new bundle includes higher usage limits for AI-powered Copilot, along with forthcoming access to two advanced reasoning agents that were previously limited to corporate customers. This gives consumers a taste of the enterprise-grade tools that businesses have been testing since last year.
Microsoft has invested heavily in generative AI, pouring over $13 billion into OpenAI and integrating its models into Copilot. The strategy has paid off: Microsoft reported 89 million consumer subscribers to its 365 services in the June quarter, an 8% increase year-over-year, with revenue growth accelerating to 20%.
The Bigger Picture
Microsoft’s move reflects a broader shift in the tech industry as companies compete to make AI indispensable in daily work and life. By bundling AI directly with productivity software, Microsoft is betting that convenience and integration will win over users faster than standalone subscriptions.
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With Microsoft 365 Premium, the company is blending everyday productivity with next-generation AI, aiming to make powerful tools more accessible to consumers. As competition heats up with Google, Anthropic, and OpenAI, Microsoft’s latest move signals that the real battle for consumer AI adoption will happen inside the apps people already use every day.
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