Microsoft today announced that it is introducing Copilot AI features to its Microsoft 365 suite for Personal and Family subscription plans. The changes will be reflected in the majority of markets worldwide where the company is providing services. The development comes days after Google made a major overhaul in its Workspace plans by adding AI features to all subscription offerings, from ‘Business’ to ‘Enterprise’.

Previously offered under a separate Copilot Pro subscription plan for an additional charge of $20 per month, now the new bundle package includes all Copilot AI features. Going forward, users will have the option to get all Copilot features in Microsoft 365 plans for an extra cost of $3 per month. This is also valid for existing subscription plans. However, the AI features are not mandatory, as the company is still offering a choice – ‘with’ or ‘without’ the Copilot subscription option under the new packages.

The Copilot features will allow subscribers to leverage AI to perform tasks like analyzing data in Microsoft Word, Excel, and PowerPoint. Additionally, users will be able to create and edit images with the newly introduced Microsoft Designer app, which uses AI to assist in designing visual content.

While users can access Copilot AI features, there will be a limit to how much they can use each month, based on a set number of credits. However, Microsoft believes these credits will be enough to meet the needs of most users. Speaking of details, under this new offering, Microsoft 365 Personal and Family subscribers will receive a certain amount of AI credits every month. These credits can be used to access Copilot features in apps like Word, Excel, PowerPoint, Outlook, and OneNote.

Additionally, the AI credits can be used for artificial intelligence-based image creation and editing in the Designer app, as well as in other AI-powered apps like Paint, Photos, and Notepad on a Windows device.

Meanwhile, for Microsoft 365 Family subscribers, there is a catch. With a Family subscription, Copilot will be available to the subscription owner and cannot be shared with others. The company also advises upgrading to Copilot Pro for those who frequently use Copilot.

“To reflect the extensive subscription benefits that we’ve added over the past 12 years and enable us to deliver new innovations for years to come, we’re increasing the prices of Microsoft 365 Personal and Family in the US for the first time since its release by $3 USD per month,” the company said in a blog post while announcing the price hike. Microsoft also clarifies that existing subscribers will not have to pay the increased price until their next renewal.

Earlier, the company rolled out Copilot Chat, based on a consumption-based pricing model. It is designed as an alternative to the full-featured Microsoft 365 Copilot. Users can access Copilot Chat live in the Microsoft 365 Copilot app. All this comes at a time when Microsoft has already announced massive investment plans of around $80 billion in fiscal 2025 to construct data centers that are capable of supporting AI workloads.