Microsoft 365 Premium: Discounted AI Offer, But For Whom?

Microsoft recently introduced Microsoft 365 Premium, an offering that succeeds Copilot Pro and provides advanced artificial intelligence features. The plan is priced at $20 per month or $200 per year, but to attract users, Microsoft is offering a 50% discount for the first year, bringing the cost down to $100.

This offering primarily targets current subscribers of Microsoft 365 Personal and Family plans. Indeed, those who are already subscribed to these plans can upgrade to the Premium version for an additional $30 in the first year. Microsoft 365 Premium includes all the features of the Family plan, but with added AI benefits, such as priority access to the latest ChatGPT models and increased usage of AI features.

Last year, Microsoft raised the prices of its Microsoft 365 Personal and Family subscriptions by over 30%. This increase comes amid widespread inflation, where the prices of basic goods, such as eggs and gasoline, have also surged. Users thus have to pay for the new AI features, even if they do not utilize them.

Microsoft 365 Premium costs 54% more than the price of Microsoft 365 Family. By early 2025, Microsoft was undergoing a rebranding phase and price increase. The account holder has access to "exclusive AI features" and increased AI usage beyond standard credit limits.

In comparison, ChatGPT Plus, OpenAI's offering, is also priced at $20 per month. However, Microsoft 365 Premium stands out by directly integrating AI tools into applications like Word and Excel, providing a more seamless experience for users who often exceed the usage limits of AI services. Copilot in Microsoft 365 uses the same OpenAI models as ChatGPT Plus and has similar usage limits, but allows for direct interaction with Word, Excel, and other Office files.

For those interested in a trial, Microsoft offers a free month of Microsoft 365 Premium. Current subscribers of any consumer edition of Microsoft 365, including the $2 per month plan, can benefit from the discounted Premium subscription. However, trial editions are not eligible for this discount, but it is possible to subscribe to a basic $2 plan and then upgrade to Premium at a reduced price.

Microsoft 365 Premium targets users who frequently interact with AI chatbots or experiment with AI-enhanced images. The plan is designed for those who regularly hit usage limits with ChatGPT or other commercial options. The target market thus consists of individuals already subscribed to Microsoft 365 who wish to maximize their use of AI features.