M icrosoft is bundling its AI-powered Office features into Microsoft 365 Personal and Home subscriptions, but it’s also raising prices as a result. Previously, Microsoft 365 sub

According to emails, Australian 365 Family users will also see an increase from AU$139 to AU$179, while 365 Personal subscribers will have a rise from AU$109 to AU$159. That's a 45% price hike, and it's all for AI features and enhancements in apps that's contributing to it.

Microsoft hasn't said for how long this "limited time" offer will last, but presumably it will only last for a year or two to help ease the transition between the old pricing and the new pricing. New subscribers won't be offered the option to pay for the Classic plans.

The changes are part of an effort on the companies’ part to boost the adoption of their AI tools among business users. Microsoft ships an AI assistant called Copilot as part of its Microsoft 365 productivity suite. Google, in turn, offers the Gemini machine learning feature bundle to users of its rival Workspace suite.

Copilot is Microsoft's generative AI chatbot featured in much of the company's productivity software, and the tool has free and paid versions.

Key Takeaways Microsoft said its Copilot AI assistant will be added to Microsoft 365 for consumers, allowing users to create content with AI in Word, Excel, Powerpoint and more.Subscribers will receive a monthly allotment of AI credits to spend on these tasks.

Microsoft (NASDAQ:MSFT) announced on Thursday that it has added Copilot AI features to its Microsoft 365 suite for individual users. This move comes a day after the company introduced on-demand AI agents for businesses.