Microsoft To Hike Price For AI Office Tools: All You Need To Know

In addition to the AI copilot, Microsoft unveiled Bing Chat Enterprise, a more secure version of its search engine designed for businesses

During a recent virtual Inspire conference, Microsoft announced that it would be introducing new artificial intelligence (AI) features to its widely used office software, with a corresponding increase in cost. The company aims to capitalise on the potential benefits of AI technology. Microsoft revealed that it would charge customers at least 53 per cent more to access the AI copilot feature in Microsoft 365. This upgraded version promises to draft emails in Outlook, create documents in Word, and make an employee's data easily accessible via a chatbot. The monthly cost per user for the AI copilot will be $30, in addition to existing publicly listed plans that range from $12.50 to $57.

Consequently, some Microsoft customers could see their costs triple with this new feature.

Jared Spataro, Corporate Vice President at Microsoft, explained in an interview that the AI copilot would prove its value through time savings and increased productivity. For instance, the copilot can summarise Teams calls, eliminating the need for note-taking and reducing the necessity of attending certain meetings. Spataro declined to provide revenue forecasts for the copilot, although it has undergone testing by at least 600 enterprises since its introduction in March.

In addition to the AI copilot, Microsoft unveiled Bing Chat Enterprise, a more secure version of its search engine designed for businesses. This version aims to address concerns related to data protection and privacy. Unlike the public Bing search engine, which could potentially expose user data, Bing Chat Enterprise ensures that no user data is viewable or saved to train the underlying AI technology. Employees will need to log in with their work credentials to access the protected environment.

Microsoft's strategic move with Bing Chat Enterprise aligns with the company's goal of challenging Google's dominance in search advertising, which generates significant revenue. Moreover, it can drive customers towards Microsoft 365 Copilot, an AI upgrade that grants access to business data and compliance controls.

By offering enhanced AI features in its office software and addressing data privacy concerns through Bing Chat Enterprise, Microsoft aims to attract businesses looking to leverage AI capabilities while safeguarding their sensitive information.