Microsoft (MSFT.US) has announced the integration of AI tools for the consumer version of Microsoft 365.

Microsoft (MSFT.US) has announced that it will integrate its AI tools into the consumer version of Microsoft 365 and increase prices for the first time since launching its subscription service 12 years ago.Microsoft stated in a blog post on Thursday that it will introduce its Copilot AI assistant to Word, Excel, PowerPoint, Outlook, and OneNote applications, providing more intelligent features for consumer users. This is a significant move to enhance the attractiveness of Microsoft 365 subscriptions.Microsoft 365 Consumer Products VP Bryan Rognier said in the blog post that the monthly subscription fee will be raised by $3 to "reflect the many subscription benefits we've added over the past 12 years and support future new innovations."The adjusted prices are as follows: Microsoft 365 Personal (personal version): monthly fee from $6.99 to $9.99, annual fee from $69.99 to $99.99. Microsoft 365 Family (family version for 6 users): monthly fee from $9.99 to $12.99, annual fee from $99.99 to $129.99.Existing consumer subscription users will see the new price changes when renewing their subscriptions. As of September, Microsoft had 84.4 million Microsoft 365 consumer subscription users, up 10% year-on-year.Microsoft 365, formerly known as Office 365, is a key product for Microsoft to compete with Google's productivity tools in the consumer market. However, the revenue contribution from the consumer market is lower than that from enterprise sales.Microsoft 365 accounted for 31% of the company's revenue in its fiscal 2023 third quarter, while the consumer products and cloud services accounted for less than 3%. Microsoft raised the price of its business subscriptions for the first time in 2022, and this is the first time it has raised the price for consumer subscriptions.In addition to the Copilot AI assistant, subscription users will also gain access to Microsoft Designer image editing tools. For existing subscribers, Microsoft said they can switch to plans without Copilot or AI features within a limited time. These plans will maintain the current functions, but to experience some new features, users need to subscribe to Microsoft 365 Personal or Family versions.