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,

Key Takeaways Microsoft said its Copilot AI assistant will be added to Microsoft 365 for consumers, allowing users to create content with AI in Word, Excel, Powerpoint and more.Subscribers will receive a monthly allotment of AI credits to spend on these tasks.

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.

If you're not a fan of the new Copilot AI features in Microsoft Word, there's finally a way to turn off its features permanently. Here's how to do it.