Microsoft 365 price increase – do you want to pay for AI?

Microsoft 365 price increase is largely due to the inclusion of AI Copilot features that can add extraordinary productivity value if you use them.

Microsoft 365, the annual subscription-based office productivity suite, has seen prices steeply increase, essentially to cover the inclusion of Copilot AI features—whether you want them or not.

Previously, the single-user cost was $109 (now $159), and the Family version for up to six users was $159 (now $179).

As it is subscription-based, these apply from the next renewal, and it has garnered many negative comments from those doing it tough. So, what alternatives do you have?

You could buy the $219 Office Home and Business 2024 version (single user), but it does not include upgrades; frankly, you need that.

Why? With a subscription, you get the latest features, fixes, and security updates with ongoing tech support at no extra cost. It can be used on PCs, Macs, tablets, and phones. The Microsoft 365 Family plan lets you share your subscription with up to five more people. Everyone gets their apps and storage. However, Copilot AI features are only for one user – the subscription owner.

The Family version includes

• Up to 6 users (these should be the same family or household).
• 1TB of OneDrive cloud storage per user
• Multiple device platforms (Windows, MacOS, Android and iOS)
• Apps installed on your device (for off-line use) include Word, Excel, PowerPoint, Designer (replaces Publisher) and Outlook (ad-free version)
• Microsoft Defender (upgrades Windows Security to include iOS, Android, Windows, and Mac, with malware protection, web protection, and real-time security notifications)
• Microsoft editor
• Clipchamp (video editor)
• Microsoft Teams
• OneNote
• Access database (Windows only)
• Microsoft Forms
• Expanded content library of royalty-free high-quality photos, icons, fonts, videos, and audio.
• Contact support via chat or email to get help when you need it

What will Copilot do for me? Do I need it?

If you use Microsoft 365, you have no option –  Copilot is embedded in Word, Excel, PowerPoint, Outlook and OneNote, but you can turn it off. It appears that only one Copilot licence comes with the six-user Microsoft 365.

Think of it as your assistant asking it questions, and it helps to raise your productivity.

AI also has privacy implications, as Copilot processes everything you do. We cannot be definitive yet about whether this is an issue and how your data may be used.

Update

Microsoft has confirmed that the integration of Copilot into Microsoft 365 cannot be removed. You are not obliged to use the features that can be limited via your privacy settings in the app. The European Union has requested that Microsoft implement a simple button to disable Copilot as it can affect students grades.

Microsoft 365 price increase – options

Microsoft 365 Online free

There is a free online browser-based Microsoft 365 Word, PowerPoint, Excel, Editor, Outlook, OneNote, Teams, and more. These are not installed on your device and need an internet connection.

This is great if you are an occasional user, but the only downside is that you need a reliable internet connection.

LibreOffice – free and what Microsoft Office used to be

In 2023, we reviewed LibreOffice 7.6 – free MS Office alternative, but it is up to version 24.8.3 (as of 27 November 2024). It looks and feels like the older Office 365 with Ribbon bars and uses most of the Word/Excel/PowerPoint/Publisher shortcuts. It opens:

• Writer (Word)
• Calc (Excel)
• Impress (PowerPoint)
• Draw diagrams
• Base (Access)
• Math (formula editor)
• Charts
• And several useful tools.

I have installed this widely for those who cannot afford Microsoft 365. Without exception, users report that it is acceptable for them. The main issue is that documents created in Microsoft 365 may not be properly formatted (margins, text boxes, etc.), but these are easily fixed. It can save in Microsoft 365 formats as well.

Pro

• Free
• Windows, MacOS and Linux with a portable USB stick version

Con

• Online form-based support only

OnlyOffice

I have not tried OnlyOffice, but it gets good reviews. It has an AI assistant plugin to boost your work with your texts: run word analysis and explore the meaning of unknown words, generate passages, images, and keywords, summarise and translate stories, and find synonyms.

It has Document Editing (Word), Spreadsheet editing (Excel), Presentation editing (PowerPoint), fillable forms and PDF editing. There is a basic free version and a business version.

Pro

• Free basic version
• Mobile and desktop apps.
• Good cloud integration or save locally
• AI Assistant

Con

• The business version is US$20 per user per month – expensive

Google Workspace (formerly G Suite)

Google Workspace is a paid product that includes Gmail, Calendar, Meet, Chat, Drive, Docs, Sheets, Slides, Forms, Sites, and more. It is aimed at businesses and has plans starting at $8.40 per user per month. Google includes its Gemini AI App, and you can upgrade to Gemini Advanced Business for a total of $28 per month.

I have used the older G Suite, an older product with many interesting features.

 SoftMaker FreeOffice

SoftMaker FreeOffice has emulated Microsoft 365 look and feel, but it is limited to TextMaker (Word), PlanMaker (Excel), and Presentations PowerPoint).

It is freemium, meaning that certain features (which you may need) require a paid subscription.

Pro

• Free
• Windows, MacOS and Linux

Con

• Not nearly as extensive feature set as LibreOffice
• The website was offline, so we could not dig deeper.

WPS Office

WPS Office is a Chinese-developed, ad-supported Microsoft 365 look-alike. It has Docs (Word), Sheet (Excel) and Slides (PowerPoint) as well as some tools like a PDF editor and Photo editor. It is getting AI features, presumably from Chinese AI suppliers. WPS Office purports to be a Singapore-based company but is, in fact, Kingsoft Office from China.

Pro

• Free
• Windows, MacOS and Linux

Con

• Not nearly as extensive a feature set as LibreOffice
• Advertising-supported
• Strong privacy concerns

CyberShack’s view: Microsoft 365 price increase – wear it or get the free LibreOffice

We may not need Copilot AI at extra cost, but you don’t have a choice if you want to continue using Microsoft 365. I suspect that 99% of users will simply renew their subscriptions.

The main AI risk is that your data can be used to train neural networks and large language models (LLMs). You can limit this in settings options.

LibreOffice has few downsides, and we recommend it as the best free Office suite with the best privacy.

We listed a couple of alternatives, but frankly, the more we look at them, the less we like them. There are dozens of Office wannabes, but most seem to hoover up your data and sell it.