Microsoft is rolling out a major change for consumers who want both productivity tools and advanced AI features under one plan. The company has announced Microsoft 365 Premium, a new subscription tier that merges the existing Family plan with Copilot Pro at a bundled price of $19.99 per month. Previously, Copilot Pro was only available as a $20 standalone add-on, which Microsoft is now discontinuing in favor of this new package.
The Premium plan brings together the familiar Office suite—Word, Excel, PowerPoint, OneNote, and Outlook—with Copilot deeply integrated across apps. Subscribers also receive 1TB of OneDrive cloud storage and access to Copilot Chat directly inside Office. On the AI side, the upgrade includes “extended” GPT-5 usage limits, 40 image generations, and access to Copilot’s specialized Actions, Researcher, and Analyst agents, making the subscription more competitive with other consumer-focused AI services.
Microsoft is clearly positioning this new bundle against ChatGPT Plus, even drawing direct comparisons in its announcement. For home and workplace users, the company highlights that Premium also benefits from Enterprise Data Protection in Copilot, promising a higher level of security and privacy for sensitive tasks.
Existing 365 subscribers should be aware of a caveat, though: upgrading won’t simply transfer your current plan. Instead, Microsoft will prorate your existing subscription and convert it into Premium days, with the details outlined on a dedicated support page. For those who choose to stay with Microsoft 365 Family or Personal, the company is adding smaller perks such as 40 image generations inside Office apps, unlimited Copilot Voice, and access to Copilot features like Podcasts, Vision, and Deep Research.
