Is Copilot worth it? Normal consumers are pushing back. In response, Microsoft is quietly pivoting its consumer AI strategy by bundling Copilot features into Microsoft 365 Personal and Family subscriptions across select markets after its initial strategy of offering these tools as a $20 monthly add-on struggled to gain traction. With Copilot originally launched as a premium feature under the separate Copilot Pro plan, Microsoft found that consumers didn't want to pay an additional fee on top of their existing subscription for access to AI tools.
According to a press release, Microsoft is integrating Copilot directly into standard Microsoft 365 subscriptions, providing access to features across core applications like Word, Excel, PowerPoint, Outlook, and OneNote. These tools offer users the ability to generate content, analyze data, enhance presentations, draft emails, and organize notes more efficiently. Microsoft Designer is also being bundled into these subscriptions, expanding creative capabilities by allowing users to generate and edit images across applications, with standalone access on the web.
To manage resource usage, Microsoft 365 Personal and Family subscribers will receive a monthly allotment of AI credits, with an option to upgrade to Copilot Pro for unlimited use.
A few thoughts come to mind. Has Microsoft done a poor job of explaining what normal people can accomplish with Copilot? For example, automated writing suggestions and summaries in Word, formula generation in Excel, PowerPoint's automatically structured presentations, complete with visuals and speaker notes, and Outlook's draft emails and thread summaries. Or…
Do normal people simply not benefit from all of this? Maybe none of these features (except the Excel formula functions and Outlook summaries) work well enough to justify an extra $240/year. I'm sure Microsoft will do some market research and figure it out.
In the meantime, it will be interesting to see if free works. After all, "free" is very consumer-friendly pricing.
As always your thoughts and comments are both welcome and encouraged. Just reply to this email. -s
ABOUT SHELLY PALMER
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.
