Some customers are about to see a huge rise in their Microsoft 365 subscriptions

(Image credit: Microsoft)

Microsoft increases M365 Family price by 29%, M365 Personal by 46%
The extra cash is to fund its AI tools, whether you want them or not
Six countries have seen rises so far, unconfirmed for the UK and the US

Customers across six Asian and Australasian nations are having to contend with major price hikes to stay connected to their Microsoft 365 online services as the company struggles to identify the right pricing for its AI tools.

Australia, New Zealand, Malaysia, Singapore, Taiwan and Thailand are now seeing hikes of up to 46% in their bills, according to a report from The Register., which notes customers from the six nations received emails last week notifying them of the significant changes.

The company says charging more will “ensure Microsoft customers are among the first to access powerful AI features in our apps”.

Microsoft 365 prices are going up… because AI

Screenshots seen by The Register indicate Microsoft 365 Family subscriptions have increased from AU$139 to AU$179, with Personal subscribers set to pay AU$159, up from AU$109. That means a staggering 29% increase for Family members and an eyewatering 46% increase to Personal subscribers’ bills.

The company’s website has since been updated to reflect the pricing – AU$159 or AU$16/month for Personal, and AU$179 or AU$18/month for Family. Pricing in other countries has not yet been affected – the two tiers still cost £59.99 and £79.99 in the UK.

“These price changes reflect the extensive subscription benefits that Microsoft has added over the past 12 years including advanced security with Microsoft Defender, creative tools like Clipchamp, and countless enhancements to Word, Excel, PowerPoint, OneNote, and Outlook, in addition to new features such as Microsoft Copilot and Microsoft Designer," a Microsoft spokesperson stated.

It’s unclear whether more countries will be subjected to rising bills - TechRadar Pro has asked Microsoft to confirm, but we did not receive an immediate response.

The company did add: "As Microsoft understands that customers have a variety of needs and budgets, the company is committed to providing options. Existing subscribers with recurring billing enabled can switch to plans without Copilot or AI credits like the Basic plan or, for a limited time, to new Personal Classic or Family Classic plans. These plans will continue to be maintained as they exist today, but certain new innovations and features will require a Microsoft 365 Personal and Family subscription."

For comparison, Google One AI Premium with 2TB of cloud storage for up to six family members costs AU$32.99/month – even more than the AU$18/month that Microsoft wants to charge for its Family plan, which includes 6TB of storage for up to six family members.

iCloud+ with 2TB of storage costs AU$14.99, or UA$44.99 for 6TB. It can be shared among up to six, but Apple Intelligence features are more limited and ship with the hardware, rather than a cloud storage subscription.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!