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,

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.

Microsoft 365 subscriptions now cost 30 percent more for home users, but Copilot and AI image editing are included. There's a way out for existing customers.

However, new features come with a price increase. The monthly cost will rise by $3, bringing the Personal plan to $10 per month (or $100 annually) and the Family plan to $13 per month (or $130 annually). According to Microsoft, the price increase will come into effect the next time current customers are billed.

Key Takeaways Microsoft said its Copilot AI assistant will be added to Microsoft 365 for consumers, allowing users to create content with AI in Word, Excel, Powerpoint and more.Subscribers will receive a monthly allotment of AI credits to spend on these tasks.

Microsoft (NASDAQ:MSFT) announced on Thursday that it has added Copilot AI features to its Microsoft 365 suite for individual users. This move comes a day after the company introduced on-demand AI agents for businesses.