Microsoft 365 Subscription Price Increase in Australia, New Zealand, and Now Beyond
Recently, Microsoft implemented a price hike for its Microsoft 365 subscriptions in Australia and New Zealand. To compensate for this adjustment, the tech giant introduced Copilot and various AI-driven functionalities in applications such as Word and Excel. This shift is now being observed in other countries around the world.
Notable Price Changes in the United States
This marks the first increase in pricing for the Microsoft 365 Personal and Home plans in the United States since the introduction of Office 365 over a decade ago. Previously, users enjoyed a steady annual fee of $69.99 for Personal and $99.99 for Home subscriptions. The new pricing structure raises these amounts by $3 per month, resulting in updated costs of $99.99 and $129.99 respectively.
Access to New Features for Existing Subscribers
If you are a current Microsoft 365 subscriber, you will not experience immediate changes until your next billing cycle. However, you can start utilizing new Copilot features without delay. For those customers who prefer to avoid additional costs and do not require the latest AI functionalities, Microsoft offers Personal Classic and Family Classic plans. These options retain the old pricing but do not include access to AI features. It is worth noting that Microsoft has committed to maintaining these plans for existing customers, with the caveat that “certain new innovations”will be exclusive to the premium subscriptions.
Enhanced Features with AI-Centric Tools
Microsoft 365 subscribers can now benefit from several advanced features, including:
- Document drafting in Word
- Data analysis in Excel
- Email summarizations in Outlook
- Presentation generation in PowerPoint
- Image creation through Microsoft Designer
Access to these features is governed by AI credits, which will be distributed monthly to subscribers. Although Microsoft assures that this amount should suffice for most users, those needing more extensive usage have the option to upgrade to Copilot Pro for $20 per month, offering unlimited access.
Privacy Assurance and Control Over Copilot Features
Microsoft has also committed to not utilizing your document data for training its AI models, addressing concerns raised by misinformation circulating online. Users can easily disable Copilot, facilitating compliance with workplace or educational privacy policies.
Staying Current with AI Features in Office Apps
If you’re an existing Microsoft 365 subscriber, ensure that you’re using the latest version to fully leverage the AI-enhanced functionalities available in Office applications.
For further details, visit the official Microsoft blog here.
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