Microsoft 365 Premium promises more office AI features than ChatGPT Plus for one cent less
Key Points
- Microsoft is launching the Microsoft 365 Premium subscription for $19.99 per month, replacing Copilot Pro and bringing AI-driven agents like Researcher and Analyst to private users alongside traditional Office apps.
- Current Microsoft 365 Personal and Family subscribers will get enhanced Copilot capabilities at no extra cost, including increased usage limits and integrated Copilot chat within Office programs.
- The company is expanding its Frontier program for experimental AI features to individual users and is offering students worldwide a free annual Microsoft 365 Personal subscription.
Microsoft has introduced Microsoft 365 Premium, a $19.99-per-month subscription that combines Office apps and advanced AI features, putting it in direct competition with ChatGPT Plus at the same price point.
The plan includes desktop versions of Word, Excel, PowerPoint, OneNote, and Outlook, each with Copilot integrated. It also unlocks Researcher and Analyst AI agents that were previously only available to business customers. Researcher, which is already in the Copilot desktop app, will soon be built into Word, PowerPoint, and Excel.
According to Microsoft, Researcher can collect, analyze, and summarize information from the web or files in minutes, all within the document. The underlying technology is likely based on OpenAI's Deep Research model, rebranded for Microsoft's ecosystem.
In Excel, the Analyst agent turns raw data into actionable tasks, like breaking down customer feedback. Premium subscribers also get early access to Office Agent and Agent Mode.
Microsoft 365 Premium includes the highest usage limits for GPT-4o image generation and voice features in Microsoft 365 apps, plus access to Podcasts, Deep Research, Vision, and Actions in the Copilot app. A Photos Agent is coming soon, along with 1 TB of cloud storage and Microsoft Defender.
Copilot changes for existing subscribers
Microsoft is also updating its Microsoft 365 Personal ($9.99/month) and Family ($12.99/month) plans at no extra charge. Both now get higher usage limits for certain Copilot features compared to the free tier. All individual Microsoft 365 subscribers will also get Copilot chat inside the apps.
Current Copilot Pro subscribers will be moved to the new plan, which, according to Microsoft, covers everything from the old Microsoft 365 Family and Copilot Pro subscriptions.
Microsoft is openly positioning itself against ChatGPT. In press materials, the company draws a direct comparison between Microsoft 365 Premium and ChatGPT Plus, underlining a shift from partnership to direct competition.
| Plan | Microsoft 365 Premium | ChatGPT Plus |
|---|---|---|
| Monthly Pricing | $19.99 | $20.00 |
| Extended AI usage limits | Yes (including GPT-5, GPT-4o image generation, and more)¹ | Yes (including GPT-5, GPT-4o image generation, and additional legacy models) |
| Access to agents | Yes (Actions, Researcher, Analyst)¹ | Yes (ChatGPT agent and Codex agent) |
| Advanced voice and vision | Yes¹ | Yes |
| Test new AI features | Yes¹ | Yes |
| Productivity apps | Yes (Word, Excel, PowerPoint, OneNote, Outlook) | No |
| Cloud storage | Yes (1 TB per person) | No |
| Advanced security | Yes (Defender) | No |
| Custom GPTs | No | Yes |
| Limited access to Sora | No | Yes |
Experimental features and expanded access
Microsoft is also expanding its Frontier program to individual users. Personal, Family, and Premium subscribers can test experimental AI features like Office Agent and Agent Mode in Word and Excel.
The free student offer, once only available in the US, is now open in most countries. University students can get one year of Microsoft 365 Personal for free through October 31, 2025, with a valid university email.
Microsoft is also updating its app icons for Word, Excel, PowerPoint, OneNote, Outlook, and other apps. The new icons, according to Microsoft, feature "cleaner shapes, vibrant colors and a connected design system" influenced by Copilot. The rollout is planned for web, desktop, and mobile in the coming weeks.
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