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Copilot AI comes to Microsoft 365 plans: Everything you need to know

by David Chen
3 minutes read

Copilot AI Comes to Microsoft 365 Plans: Everything You Need to Know

If you are a Microsoft 365 subscriber with a Personal or Family plan, you’ve likely noticed a recent addition to your subscription—Copilot AI features. This enhancement, activated by Microsoft, is now part of your existing subscription, offering a significant upgrade alongside the standard benefits like OneDrive storage and Office apps.

Following in the footsteps of Google, Microsoft has integrated AI features into its standard subscription plans, resulting in a simultaneous price increase. This move aims to provide users with advanced AI capabilities at a bundled cost, aligning with the industry trend of incorporating artificial intelligence into everyday tools.

How Copilot Works in Microsoft 365 Plans

As of January 16, Microsoft has rolled out Copilot features to all Microsoft 365 Personal and Family plans in most global markets. This change impacts individual subscribers who pay for their Microsoft 365 subscriptions, granting them access to Copilot functionalities within popular apps like Word, Excel, and PowerPoint. Previously, these features were only available through a separate Copilot Pro subscription priced at $20 per month.

It’s important to note that the expanded Microsoft 365 plans offer a limited number of monthly credits for AI feature usage. Users receive approximately 60 credits per month, allowing them to leverage AI capabilities a set number of times. Exceeding this limit would require upgrading to the Copilot Pro subscription for continued access to AI features.

Using Copilot AI in Microsoft 365 Apps

Navigating Copilot AI within Office apps is straightforward with the introduction of a dedicated Copilot icon on the ribbon. Users can access AI capabilities by selecting text and clicking the Copilot icon or using the shortcut Alt+i to prompt Copilot to assist with text generation or rewriting tasks. Additionally, users can engage with Copilot through the sidebar to ask questions or seek document-related insights.

For a detailed understanding of Copilot’s functionality within Office apps, referencing previous reviews can provide valuable insights. The built-in Copilot features mirror those available in Copilot Pro, with the primary distinction being the capped usage limit in the Microsoft 365 setup.

Generating Images with Microsoft Designer

The same credit system that applies to Copilot features extends to Microsoft Designer, an AI-powered image-generation tool. With paid Microsoft 365 Personal or Family plans, users can utilize their monthly AI image credits within Designer. However, the allocation has shifted from daily credits to a total of 60 credits per month, affecting both paid subscribers and free account holders.

For users requiring additional AI image generation capabilities, upgrading to the Copilot Pro plan is an option. This upgrade provides significantly more credits for Designer usage compared to the base Microsoft 365 subscription, catering to users with higher AI feature demands.

How to Avoid the AI Features (and Costs) Entirely

If the AI features included in the updated Microsoft 365 plans do not align with your needs or budget, several strategies can help you navigate these changes. You can maintain your existing subscription price and opt out of the AI features for a limited period by transitioning to Classic plans during the subscription renewal process.

Alternatively, exploring perpetual licenses for Office or purchasing Microsoft 365 subscription keys from third-party retailers can offer cost-effective alternatives. While other office suites exist, Microsoft’s suite remains a standard choice for businesses, especially considering the added value of features like 1TB of OneDrive storage.

In conclusion, Microsoft’s integration of Copilot AI features into Microsoft 365 plans represents a significant advancement in productivity tools. By understanding the implications of these changes and exploring options to tailor your subscription to your needs, you can optimize your Microsoft 365 experience while managing costs effectively.

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