Apple is just beginning to incorporate AI into its software ecosystems. Meanwhile, a key rival, Microsoft, has realized a significant lesson: consumers generally aren’t inclined to pay a premium for AI functionalities.
Copilot Pro is now part of Microsoft 365, not a standalone subscription
Microsoft has officially revealed that its Copilot Pro AI features will be integrated into Microsoft 365 (as reported by ZDNet). This integration will enhance major applications such as Word, Excel, PowerPoint, Outlook, and others.
This is a positive update for users, but it also highlights a recognition of a flawed AI business approach.
How so? Previously, Microsoft charged $20 per month for Copilot Pro as a supplementary feature for Microsoft 365.
This pricing model apparently did not resonate well with users.
As stated in Microsoft’s announcement:
It’s been nine months since we launched Copilot within our Microsoft 365 apps through Copilot Pro. During this period, we’ve focused on enhancing features, boosting performance, and closely heeding customer insights. Based on this feedback, we’ve decided to integrate Copilot into our Microsoft 365 Personal and Family subscriptions.
The company is implementing minor price increases for Microsoft 365, as it includes both Copilot Pro and the new Microsoft Designer app in its subscription package. However, these increments are minimal compared to the previous charges for Copilot Pro.
Currently, these changes are available only to users in Australia, New Zealand, Malaysia, Singapore, Taiwan, and Thailand. Nonetheless, Microsoft is likely to extend this rollout globally soon and its trials in selected regions help mitigate risks in markets like the U.S.
Insights for Apple Intelligence
While I’m not a subscriber to Microsoft 365 and thus not directly affected by the changes to Copilot Pro, I believe Apple could benefit from understanding Microsoft’s pricing strategies.
If Apple plans to introduce charges for specific Apple Intelligence features in the future, a fee of $20 per month may prove excessive. This pricing structure may work for ChatGPT Plus, but OpenAI doesn’t seem focused on gaining a mass subscriber base.
If Apple were to launch premium AI features, it might be more advantageous to include these in the Apple One subscription, possibly raising the overall bundle price slightly. I anticipate this approach would be much better received by users.
What are your thoughts on Microsoft’s changes to Copilot Pro? Share your insights in the comments.
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