This month, users of Microsoft 365 may have come across a pleasant notification informing them that Copilot, Microsoft’s AI assistant, is now part of their subscription plan. However, it’s essential to note that this “addition” comes with an unseen cost that might catch some users off guard.
Microsoft 365’s Copilot Inclusion Leads to a Price Increase
Starting January 2025, Copilot will automatically be integrated into the Microsoft 365 Office applications. This represents a significant departure from Microsoft’s previous model, which only offered Copilot Pro as a premium, optional add-on. Now, there’s no opting out: Copilot is making its way into all your Office software, including Word, Outlook, and PowerPoint.
This automatic update, which will take effect with your next Microsoft 365 renewal, results in a $3 increase in your subscription fee. If you aren’t a fan of Copilot or AI features—or simply aren’t ready to pay for them—you can choose to downgrade to a non-Copilot plan.
How to Switch Back to a Traditional Plan
Transitioning back to a standard “Classic” plan, as Microsoft calls them, isn’t exactly straightforward. This is likely because the company prefers you to remain on the AI-enhanced option.
Here are the steps to revert to a plan without Copilot:
- Open your web browser and head over to Microsoft’s Subscriptions page.
- Look for your plan, which will be listed as either Microsoft 365 Family or Microsoft 365 Personal. Beneath it, you will find your next billing date and the billing amount.
- In the top right corner of the plan details, click on Manage.
- Scroll to the bottom of the options and click on the button labeled Cancel subscription.
- Don’t worry; Microsoft has made sure that canceling isn’t too easy. The following screen will present you with various reasons to stay—possibly even an offer for a complimentary extension. Keep scrolling until you reach the section titled Choose a plan that’s right for you.
- Here, you can opt for the Classic plan that does not feature AI, ensuring you lock in your previous rate—for the time being.
According to Microsoft Support, the Personal Classic or Family Classic plans “may not always be offered,” which means the price hike could eventually apply to everyone. Let’s hope it isn’t anytime soon.
The Price Limit Is Nonexistent
Having a subscription service raise its prices for a feature you didn’t choose to add can be frustrating. Yet, it’s comforting to know you have some say in the matter. Unfortunately, price increases are a reality; we’ve seen subscription services across the board, like Netflix raising its ad-free subscription to $17.99 and YouTube TV increasing its monthly charge by $10 to a striking $82.99.
Productivity applications are no exception. In Microsoft’s announcement about the Copilot bundle, the company emphasized that it’s the first price increase since its debut in 2013.
AI’s presence in our apps is undeniable, and it will continue to expand regardless of personal preferences. However, as legal regulations surrounding AI are still developing, there will always be opportunities to control the activation or deactivation of these functions in our everyday tools.