Microsoft is increasing the price of its consumer Microsoft 365 bundle by $3 per month as it adds AI features to various applications. It’s the first price increase for Microsoft 365 (formerly known as Office 365) since it launched 12 years ago.

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.

Microsoft 365, formerly Microsoft Office, includes Word, Excel, and PowerPoint. It's a subscription service, but there are ways to use it for free.

Microsoft said on Thursday that it is now including Copilot AI features to its Microsoft 365 suite for individual consumers, a day after it rolled out on-demand AI agents for businesses.

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.

Microsoft Corp. is raising the price of its package of Office apps for consumers, a bet that subscribers will be willing to cough up more for access to new artificial intelligence tools.

In a blog post Thursday, Microsoft said it’s increasing the price of its Microsoft 365 bundle for consumers by $3 a month.

Google announced that it was doing away with a separate upcharge for its Gemini AI features in Workspace and forcing you to pay for it instead whether you want AI or not. Today, Microsoft is following suit,