Microsoft Doubles Down on Seat-Based Pricing For AI

Microsoft appears to be betting that its tried-and-true subscription pricing model for software is here to stay, even in the era of AI agents that run 24/7, and that customers will be OK with ever-higher prices.

Microsoft on Monday announced a new AI subscription bundle that combines Office 365 and with 365 Copilot, a suite of AI tools for automating tasks in Office apps, for business customers for the first time. 

We have anticipated this moment for the better part of two years, following the promotion of Takeshi Numoto, the Microsoft executive who perfected its previous bundles, to chief marketing officer.