Microsoft 365 introduces AI features and price increase

Martin Jud

17/1/2025

Translation: Jessica Johnson-Ferguson

Microsoft Office 365 Single and Family subscriptions are getting an AI update. Copilot’s now included in the apps as standard. But this is going to cost extra.

Until recently, AI features in Office 365 were only available to users who bought an additional Copilot Pro subscription for 21 francs or 22 euros per month. This has now changed, as Copilot’s integrated into the Microsoft 365 Single and Family subscriptions. However, it’s limited. For one, a whole family won’t benefit from the Family subscription. What’s more, an AI credit system limits the number of times you can use the assistant, which isn’t the case with the Copilot Pro model. For this, Microsoft’s increased its prices.

If you already have a Microsoft 365 subscription, you can opt out of Copilot and forego the price increase. However, all new customers will have to pay the new price whether they plan on using Copilot or not. There’s also the option to deactivate the AI assistant altogether.

How much more does Microsoft 365 now cost?

Microsoft’s talking about increasing the price in the USA by three US dollars per month to a total of 36 US dollars per year. This is said to be happening or to have happened at a similar level worldwide. Prices in our shops have risen overnight as follows:

• An annual subscription to Microsoft 365 Single now costs 63.90 instead of 53 francs. In Galaxus’s EU shops, it’s now 77.76 instead of 52.89 euros.
• An annual subscription to Microsoft 365 Family now costs 79.90 instead of 67.90 francs. In Galaxus’s EU shops, it’s now 101.11 instead of 88.07 euros.

This means that the price for the Single subscription has risen by 20.5% in Switzerland and by 47% in the EU. The Family subscription now costs 17.7 per cent more in Switzerland and 14.8 per cent more in the EU.

Please note: the prices stated here are the day rates on 17 January 2025. Prices may change on a daily basis as the market is dynamic.

If you buy Office 365 on Microsoft’s website, this will now cost you 109.95 francs instead of 69.95 francs (up 57.2 per cent) for the Single subscription. Or 99 euros instead of 69 euros (up 43.5 per cent). The Family subscription now costs CHF 139.95 instead of CHF 99.95 (up 40 per cent) or EUR 129 instead of EUR 99 (up 30.3 per cent).

No obligation to buy for existing 365 customers

If you already have a 365 subscription, you can choose to get Office 365 Single or Family without Copilot and paying extra when it’s time to renew your subscription. To do this, you’ll need to cancel your subscription and opt for one of the two new plans called Single Classic and Family Classic. However, these are «really only going to be available for the next year», as Gareth Oystryk, Senior Director of Marketing for Copilot Pro and Microsoft 365, explained in an interview with The Verge.

To make the switch, go to your Microsoft and then Manage Subscription > Cancel subscription.

Please note: if you opt for a Classic subscription, you’ll continue to receive security updates and minor function updates. However, unlike the normal 365 subscription, you won’t be getting completely new extra features.

AI credits: how often can I use Copilot with a 365 subscription?

The introduction of the AI features comes a credit system. Concretely, every Single and Family subscription holder receives 60 credits per month. For Microsoft 365 Family, this means that only the user who’s paid for Copilot can also use it. Any credits left at the end of the month simply expire.

The credit system measures how often AI-supported actions are used and deducts one credit for each. Actions include generating text, creating a table or editing an image, for example.

If you use the new Microsoft Designer App, you’ll also receive 15 additional credits. This new software allows you to create and edit images with the help of AI.

If you want unlimited use of AI features, you’ll still have to get a Copilot Pro subscription. This will also give you preferential access to advanced AI models at peak load times.

Deactivation possible

If you’re prohibited from using AI due to the guidelines of an educational institution or simply don’t want to use it for other reasons, you can deactivate Copilot. To do so, go to the respective app’s settings. For the time being, Microsoft has only equipped Word and Excel with Copilot. Further apps will follow in the coming weeks.

Alternatives without AI features

Apart from the Classic options for existing subscriptions, Microsoft only offers Office Home, which is still available without Copilot.

If you’re in search of a free alternative, you may find it in OnlyOffice or LibreOffice.

How good is Copilot in Microsoft 365?

Microsoft Copilot’s a tool to make our lives easier – to help us be more productive and creative. It can write up a letter to cancel your mobile subscription in Word in a flash, or shorten texts to a specific number of characters. In Excel, it can create diagrams or draw up balance sheets for you. It can also reword texts or create and edit images.

If that already sounds good, there’s even more. Three example videos from Microsoft

demonstrate how Copilot creates a recipe in Word based on dietary preferences and portion specifications:

In the following video, Copilot analyses a household budget and makes suggestions for a new version:

Or watch Copilot create a slideshow of your holiday in PowerPoint here:

If you’d like to buy Microsoft 365 from us, you can find relevant products here. Office Home is available here.

Martin Jud

Senior Editor

martin.jud@digitecgalaxus.ch

I find my muse in everything. When I don’t, I draw inspiration from daydreaming. After all, if you dream, you don’t sleep through life.

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