Microsoft adds Copilot Pro AI features to Microsoft 365 subscriptions
Key Points
- Microsoft is integrating its Copilot Pro AI assistant into Microsoft 365 Personal and Family subscriptions, starting with select countries in Asia and Oceania.
- Users will receive a monthly allocation of AI credits, and those who need more will need to upgrade to a separate Copilot Pro subscription. Along with the integration of Copilot, Microsoft is also raising prices for Microsoft 365.
- The inclusion of Copilot Pro in the standard bundles may indicate that separate marketing is not meeting expectations. Microsoft has not provided specific sales figures for Copilot.
Microsoft integrates its Copilot Pro AI assistant into Microsoft 365 subscriptions, suggesting a potential shift in strategy for the standalone AI service.
The company announced it will first roll out Copilot features to Personal and Family subscriptions in Asia-Pacific regions. Users will receive monthly AI credits for Copilot functions across Word, Excel, PowerPoint, Outlook, OneNote, and the AI image tool Designer. If you need additional credits, you can still purchase the separate Copilot Pro subscription for $20 per month.
The integration comes with price increases for Microsoft 365 that vary by region. Australian subscribers, for example, will see monthly costs rise from $4 to $5, affecting existing customers at their next renewal. Microsoft hasn't specified when these changes might extend to Europe or the United States.
Questions about Copilot's growth
The decision to bundle Copilot Pro into standard subscriptions might signal that standalone sales haven't met targets. While Microsoft reports that 70% of Fortune 500 companies use Copilot for some employees, the company hasn't shared specific sales numbers—potentially indicating lower-than-expected adoption given its substantial AI investments.
Microsoft CFO Amy Hood remained measured about Copilot's growth during the recent earnings call: "We continue to see growth in M365 Copilot seats, and we expect the related revenue to continue to grow gradually over time."
Cloud success vs. everyday utility
Microsoft claims record-breaking growth for its AI products overall, but this success is largely due to cloud services benefiting from increased AI adoption. The long-term success of these cloud services will depend on whether users actually find AI tools like Copilot and ChatGPT useful in their daily work.
And while it seems certain that there will be some level of long-term adoption, it's not yet clear whether it will be enough to justify the money being poured into AI and the high valuations of AI companies.
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