Microsoft has announced significant changes to its AI-powered Copilot services, introducing a free business chat option and new pricing for consumer subscriptions. The company is launching Microsoft 365 Copilot Chat, a rebranded version of its business AI chat service that includes access to AI agents on a pay-per-use basis. According to Microsoft’s chief marketing officer Jared Spataro, the service allows users to upload files and interact with GPT-4o-powered AI, with agent usage priced at one cent per basic message.
The company is simultaneously integrating AI features into its Microsoft 365 Personal and Family subscriptions, marking the first price increase for these services in 12 years. The monthly cost will rise by $3 in the US, though existing subscribers can opt for new “Classic” plans that maintain current pricing but exclude AI features. Microsoft emphasizes that these Classic plans will receive security updates but won’t include future innovations.
The pricing structure for business users varies based on usage patterns, with different costs for various types of AI interactions. Basic answers cost one cent per message, generative responses cost two cents, and Microsoft Graph-based answers cost 30 cents per message. For enterprise customers, the full Microsoft 365 Copilot experience remains available at $30 per user per month, offering integrated AI features directly within Office applications.
Sources: The Verge, VentureBeat, The Verge