Microsoft Increases 365 Subscription Costs by Adding Copilot

Microsoft has raised its 365 subscription prices in Australia and some South Asian countries.

The company is justifying the price hike by including its AI assistant, Copilot, which was introduced in 2023. Copilot is based on OpenAI’s ChatGPT technology.

According to a report by The Wall Street Journal, many users are unhappy with the price increase. They also can’t opt out of Copilot, which some feel is being pushed too aggressively.

One Australian YouTuber, Alistair Fleming, shared his frustration, saying that Microsoft was too eager for him to use Copilot. His monthly bill went up from AUD 11 (€6.56 or £5.46) to AUD 16 (€9.54 or £7.94).

Salesforce CEO Marc Benioff also criticized Copilot, comparing it to the old Microsoft Clippy. He said the AI assistant doesn’t work well and doesn’t add value, calling it “disappointing.”

Microsoft has not yet commented on the price hike or user complaints.