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

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.

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.

A big success story for software giant Microsoft (NASDAQ: MSFT) over the past decade has been Office 365, now called Microsoft 365. Facing competition from Alphabet's Google Docs, Microsoft launched subscription versions of its iconic Office applications.

Microsoft 365 subscribers in Australia, New Zealand, and some Asian markets just got an AI upgrade, along with a huge price increase. How long until customers in the US and Europe see the same?

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,