Microsoft eliminates Copilot fee for Office apps in select regions
Bundles AI tool with Microsoft 365 subscription
Microsoft has announced that its Copilot AI tool will now be included with Microsoft 365 subscriptions in certain regions, eliminating the mandatory $20 monthly fee for Copilot Pro.
The change, affecting users in Australia, New Zealand, Singapore, Malaysia, Thailand and Taiwan, brings Copilot capabilities to subscribers of Microsoft 365 Family and Personal plans at no additional charge – at least initially.
The Copilot tool, which integrates AI features across Microsoft's productivity suite, was launched less than a year ago as a premium add-on, requiring subscribers to pay $20 extra per month on top of their regular Microsoft 365 subscription fee.
Now, however, users in the designated Asia-Pacific regions will receive access to Copilot after updating to the latest version of Office apps, as part of their regular subscription bundle.
The decision, officially announced on Microsoft's Asia-Pacific website, is framed as part of the company's broader commitment to enhancing productivity and creativity.
"It's been nine months since we introduced consumers to Copilot in our Microsoft 365 apps via Copilot Pro. We've spent that time adding new features, improving performance, and listening carefully to customer feedback," Microsoft said.
"Based on that feedback, we're making Copilot part of our Microsoft 365 Personal and Family subscriptions.
"Productivity and creativity are at the heart of Microsoft 365, and with Copilot integration across our apps you're now equipped with an AI companion that doesn't just make your work easier—it makes it more effective (and fun)."
Sceptics, however, view this change as a strategic retreat from Microsoft's original pricing plan, suggesting the initial $20 monthly fee may have deterred users rather than drawing them in.
"Microsoft are effectively giving up on Copilot Pro subscription ($20/month) as almost nobody paid for it," cybersecurity analyst Kevin Beaumont stated on Mastodon.
"Instead they are bundling it into Microsoft 365 consumer subscriptions and inflating the renewal prices there. There's no opt out. Effectively allows the Copilot revenue and user numbers to be inflated."
Despite the new bundle, access to Copilot in apps like Word, Excel, PowerPoint, Outlook and OneNote will be limited to a certain number of monthly credits.
These credits also extend to Microsoft's basic apps like Paint, Photos and Notepad. Unlimited access to Copilot's full range of capabilities will still require the $20 monthly upgrade fee for those who need unrestricted usage.
The company is also adding Microsoft Designer, an AI-powered design tool for creating visually appealing content, to the Microsoft 365 subscription.
Subscribers can access Designer within Word and PowerPoint, as well as through a standalone app available on both the web and mobile devices.
While the news of free Copilot access is undoubtedly welcome, it comes with a caveat: a price increase for Microsoft 365 subscriptions across affected regions.
The company says the price hike reflects the added value Microsoft has introduced over the years and is necessary to continue funding future innovations. The price increase will vary by location.
Furthermore, Microsoft 365 Family plan subscribers should note that Copilot access will be limited to the primary account holder, with no option to share it with other family members on the plan.
Microsoft has yet to clarify if these changes, along with the price adjustments, will eventually apply to other markets worldwide.