Microsoft sets premium price for AI-powered Copilot in Microsoft 365

Microsoft 365 Copilot will be available for an additional $30 per user per month for Microsoft 365 E3, E5, Business Standard, and Business Premium customers.

The premium price for access to Copilot represents a significant increase over the existing Microsoft 365 plans. For businesses subscribed to Microsoft 365 E3, the additional cost nearly doubles the monthly subscription fee, while for Microsoft 365 Business Standard, it is almost three times the cost. Despite the impressive capabilities of Microsoft 365 Copilot, the high price may deter some businesses from adopting it in the short term.

During a paid early access program, around 600 enterprise customers, including KPMG, Lumen, and Emirates NBD, have been testing Microsoft 365 Copilot and providing valuable feedback. Microsoft has received positive responses from these customers, with growing enthusiasm for Copilot as they continue to use its features. Yusuf Mehdi, Microsoft's head of consumer marketing, believes that soon, no one will want to work without Copilot.

While Microsoft has not yet announced an official release date for Copilot, it faces competition from Google, which recently introduced similar AI features for Google Workspace. Google's AI-powered enhancements include text generation assistance in Gmail and Docs.

Zoom and Salesforce have also integrated AI-powered features into their platforms, raising anticipation for how these companies will handle pricing for their AI additions.

Microsoft's decision to price Copilot at a premium reflects the significant investment the company has made in developing its AI-powered offerings. Microsoft has partnered with OpenAI and invested billions in this endeavor. Additionally, Microsoft is actively working on its own AI chips to reduce reliance on Nvidia and address the current challenges of chip availability and costs.

Alongside the pricing announcement, Microsoft is launching Bing Chat Enterprise, which offers the same features as Bing Chat but with enhanced commercial data protection. The preview of Bing Chat Enterprise is available today at no additional cost for Microsoft 365 E3, E5, Business Standard, and Business Premium subscribers.