The Microsoft 365 bundle price is increasing in the U.S. for the first time in a dozen years as the tech giant adds artificial intelligence tools into longtime products like Microsoft Word. The cost of Microsoft 365 Personal and Family subscriptions will rise by $3 per month,

Microsoft has announced its first price increase for Microsoft 365 in 12 years, attributing the rise to the introduction of Copilot AI capabilities across its suite of applications. Effective immediately,

This raises the price of a Microsoft 365 Personal subscription from $7 a month or $70 a year to $10 and $100; a family subscription goes from $10 a month or $100 a year to $13 a month or $130 a year. For current subscribers, these prices go into effect the next time your plan renews.

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 is increasing the price of its consumer Microsoft 365 bundle by $3 per month as it adds AI features to

The Microsoft 365 subscription price will cost users a few more bucks every month, but Microsoft is adding things that won't be used.

Microsoft is launching a new pay-as-you-go plan for corporate customers that bundles together several of the company's existing AI-powered productivity features for Microsoft 365.

Microsoft has been testing adding AI-powered Office apps, the most important feature of Copilot Pro, into the Microsoft 365 subscriptions in recent months. What was previously only available in Australia, New Zealand, and a number of countries across Asia is now expanding to most markets worldwide.