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

Microsoft (MS) raised the price of its personal and home software "Microsoft 365" for the first time in 12 years. MS announced on the 16th (local time) via a blog that it would increase fees by $3 per month, along with various feature upgrades, including the introduction of the Copilot AI tool.

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.

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.

The Microsoft 365 bundle price is increasing in the U.S. for the first time in a dozen years as the tech giant adds artificial intelligence tools into longtime products like Microsoft Word. The cost of Microsoft 365 Personal and Family subscriptions will rise by $3 per month,