Microsoft Adds Subscription Tier That Combines AI and Productivity Tools

Core Insights - Microsoft has launched a new subscription tier, Microsoft 365 Premium, which integrates AI and productivity tools for individuals at a price of $19.99 per month [2][3] - The new tier combines features from Microsoft 365 Family and Copilot Pro, offering enhanced usage limits and access to various applications and AI tools [2][3] - Microsoft is discontinuing the Copilot Pro subscription and encouraging users to transition to the new Microsoft 365 Premium tier [3] Product Features - Microsoft 365 Premium includes desktop applications such as Word, Excel, PowerPoint, OneNote, and Outlook, all with built-in Copilot functionality [2] - Subscribers will have access to reasoning agents like Researcher and Analyst, along with the highest usage limits for specific features, including 4o image generation [2] - The subscription is designed for individuals needing to perform demanding productivity tasks, such as in-depth research and important presentations [4] Market Positioning - By combining AI and productivity tools, Microsoft aims to enhance its competitive stance against OpenAI's ChatGPT, despite their partnership [5] - Microsoft 365 currently has nearly 90 million individual subscribers, indicating a strong user base for the new offering [5] - The company is also exploring the use of AI technology from competitors like Anthropic, signaling a strategic shift in its AI partnerships [6]