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Google recently eliminated the separate charge for its Gemini AI features in Workspace, compelling users to pay for AI regardless of their interest. Following this, Microsoft announced a price increase for its Microsoft 365 packages, raising costs by $3 per month while bundling in Copilot AI tools. The new pricing structure reflects a significant jump, with personal subscriptions increasing from $7 to $10 and family bundles from $10 to $13 monthly.
The price hike grants access to Copilot-powered features across various Microsoft applications, but users will only receive 60 AI credits per month, which cannot be rolled over. Existing subscribers can opt for Classic plans to avoid the new features, but this option is temporary. This trend of integrating AI into existing products while raising prices raises concerns about consumer choice and market demand.
• Google and Microsoft are bundling AI features with price increases.
• Microsoft 365 users will receive limited AI credits monthly.
AI credits refer to the limited monthly usage allowance for AI features in Microsoft 365.
Copilot is an AI tool integrated into Microsoft applications for enhanced productivity features.
Bundling involves combining AI features with existing software packages, often at a higher price.
Google's recent move to eliminate separate charges for AI features reflects a shift in pricing strategy.
Microsoft's price increase for Microsoft 365 includes new AI tools, indicating a trend in software pricing.
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