Microsoft 365 Premium: The $19.99 AI Bundle Explained
Microsoft 365 Premium just launched at $19.99 per month. It bundles Microsoft’s Copilot AI with Office apps, higher usage limits, and 1 TB storage per person. Below is a quick guide to what Microsoft 365 Premium includes, how it compares, and who should upgrade.
- What is Microsoft 365 Premium?
- Key features
- Pricing and comparison
- Who should upgrade
- Setup and migration
- Risks and gotchas
- FAQs
What is Microsoft 365 Premium?
- Short definition
- Microsoft 365 Premium is a new consumer plan that combines Office apps with Copilot AI, exclusive features like Researcher and Analyst, advanced security, and 1 TB storage per person for up to six users at $19.99 per month. Source.
- Why it matters
- It replaces the need to stack Copilot Pro on top of Microsoft 365. Microsoft says Copilot Pro will stop being sold, with users invited to switch to Premium for more value. Details.
Key features
- Copilot built into Word, Excel, PowerPoint, Outlook, and OneNote with the highest usage limits available to consumers. Microsoft
- Exclusive access to Researcher, Analyst, and Copilot Actions, with Photos Agent coming soon. Microsoft
- Up to six users per subscription, 1 TB of OneDrive storage per person, and Microsoft Defender security. Microsoft Store
Pricing and comparison
| Plan | Monthly price | Users | AI features | Storage | Best for |
|---|---|---|---|---|---|
| Microsoft 365 Premium | $19.99 | Up to 6 | Highest usage limits; exclusive Researcher, Analyst, Actions | 1 TB per person | AI power users who want Office plus extras |
| Microsoft 365 Family | $12.99 | Up to 6 | Higher than free; no Premium exclusives | 1 TB per person | Households that do not need exclusive AI |
| Microsoft 365 Personal | $9.99 | 1 | Higher than free; no Premium exclusives | 1 TB | Solo users on a budget |
| Copilot Pro (legacy) | $19.99 | 1 | Priority model access; being phased out for new sales | n/a | Existing subscribers evaluating switch to Premium |
Microsoft lists US pricing as Free, Personal $9.99, Family $12.99, Premium $19.99. Copilot Pro will stop being sold, with upgrade paths to Premium. See Microsoft’s announcement. For plan details, check the Microsoft Store page.
Many outlets note the $19.99 price matches ChatGPT Plus and positions Microsoft as a productivity-plus-AI bundle. Coverage. For the launch snapshot and exclusive features, see the Reuters brief.
Who should upgrade
Great fit
- Solopreneurs and small teams who draft, analyze, and present daily, and want AI help across Office.
- Families already on Microsoft 365 who want the best AI features for the main account holder.
- Marketers who use image generation, Deep Research, and voice features often.
Stay put for now
- If you use Copilot only a few times per week, Microsoft 365 Family or Personal may be enough.
- If your company already pays for Microsoft 365 Copilot, Premium does not add work data access.
Setup and migration
- Check your current plan. If you have Family or Personal and Copilot Pro, switching to Premium usually reduces cost and complexity. Microsoft says Copilot Pro will stop being sold, and subscribers can move to Premium. Source
- Understand AI sharing. AI features apply to the subscription owner and are not shared with other members. Storage and apps can be shared. Store FAQ
- Using Premium at work. You can enable select Copilot features in work apps by signing in with your personal Microsoft 365 account, while IT can control the option. Details
Want to prep your hardware for AI-heavy workflows? Start with our practical checklist: Upgrade your computer for business AI.
Risks and gotchas
- AI usage caps still apply. Premium raises limits, but it does not make them unlimited. Expect caps across image generation, voice, and Deep Research. Microsoft
- Exclusive features can change. Researcher, Analyst, and Actions are currently marked as Premium exclusives and may roll out over time to apps. Microsoft
- AI is for the subscription owner. Family members get apps and storage. They do not inherit the owner’s Premium AI benefits. Store FAQ
For broader AI search changes, see our guide to AI search and our AI SEO ranking playbook.
FAQs
Is Microsoft 365 Premium replacing Copilot Pro?
Microsoft says it will stop selling Copilot Pro and encourages subscribers to switch to Premium, which combines Office apps and higher AI limits for $19.99 per month. Reuters Microsoft
Can my family use the AI features?
The subscription supports up to six users for apps and storage. AI features apply to the subscription owner and are not shared. Microsoft Store
Does Premium work with my work files?
Yes. You can sign into Office with your personal Microsoft account to enable select Copilot features in work apps, with enterprise controls in place. Microsoft
Is there a free trial?
Microsoft lists a one month free trial for Premium. Availability can vary by region. Check the Store
How does Premium compare to ChatGPT Plus?
Both are $19.99 per month. Premium includes Office apps, storage, and integrated Copilot features. ChatGPT Plus focuses on access to OpenAI models and tools. Analysis
Reviewed: October 2, 2025