Microsoft targets consumer market with $20 AI Copilot subscription

Microsoft on Monday announced the launch of a subscription service, "Copilot Pro," priced at $20 per month. Originally introducing a free version of AI Copilot for its Bing search engine last year, Microsoft aims to tap into the consumer and small business segments.

The Copilot Pro subscription enhances Microsoft's widely used applications, including Word and Excel, by incorporating a text-drafting, number-crunching AI assistant. Subscribers will also gain access to new tools and AI models such as GPT-4 Turbo.

Notably, the company is removing the previous requirement of a 300-person minimum for the enterprise version of Copilot. This makes the security controls and Microsoft Teams upgrade, offered at $30 per month per user, available to smaller businesses as well. Microsoft anticipates widespread adoption, with Corporate Vice President Jared Spataro stating in an interview, "I can't imagine a commercial organisation out there that will not buy at least a seat of Copilot to see what it's all about."

Microsoft's move places it in competition with Alphabet's Google, as both tech giants vie for dominance in marketing AI for productivity and cloud software to business customers. The consumer market for AI is also becoming increasingly competitive, with OpenAI, funded by Microsoft, having introduced a $20-per-month subscription called ChatGPT Plus nearly a year ago, offering early access to new features and AI models.

Spataro stressed that Copilot Pro's integration into daily-use applications sets it apart, providing a seamless experience for users leveraging Microsoft's suite of widely adopted tools. The move aligns with Microsoft's broader strategy to democratize AI tools and cater to a diverse user base.

(With Reuters inputs)