Microsoft is introducing Microsoft 365 Premium, a $19.99-per-month consumer plan that fuses its Copilot AI with Office apps and cloud storage, undercutting the combined price of Copilot Pro and Microsoft 365 Family. The company will stop promoting Copilot Pro as a standalone consumer upsell but won’t discontinue it. Microsoft says Premium raises usage limits and will add two AI reasoning agents previously reserved for enterprise users. The move comes as consumer 365 subscriptions rose 8% to 89 million in the June quarter, with revenue growth accelerating, and as rivals including Google, OpenAI and Anthropic push paid AI plans.
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