According to emails, Australian 365 Family users will also see an increase from AU$139 to AU$179, while 365 Personal subscribers will have a rise from AU$109 to AU$159. That's a 45% price hike, and it's all for AI features and enhancements in apps that's contributing to it.

This raises the price of a Microsoft 365 Personal subscription from $7 a month or $70 a year to $10 and $100; a family subscription goes from $10 a month or $100 a year to $13 a month or $130 a year. For current subscribers, these prices go into effect the next time your plan renews.

This eliminates the need for a $20 Copilot Pro add-on to try the AI features in Office apps, but it increases the overall subscription fee. A Microsoft 365 Personal plan now costs $9.99 per month, up from $6.99, and the 365 Family plan costs $12.99 per month, up from $9.99.

A personal licence of Microsoft 365 is increasing from $109 per year to $159 per year in Australia, while a family subscription is rising from $139 per year to $179 per year — increases of roughly 45 per cent and 30 per cent, respectively.

Many users less than impressed by unexpected arrival of AI assistant in Word Copilot is coming to Microsoft 365 Personal and Family, and Vulture Central has had some hands-on experience with the generative AI assistant's attempts to be helpful.

Microsoft (NASDAQ:MSFT) announced on Thursday that it has added Copilot AI features to its Microsoft 365 suite for individual users. This move comes a day after the company introduced on-demand AI agents for businesses.