- Microsoft will charge $30 a month for AI features in Microsoft 365, an increase of up to 83% over the monthly cost of enterprise versions.
- The CEO defended the decision as part of a technological revolution that automates tasks and increases productivity.
- Although a positive financial impact is expected, economic uncertainty may lead to slow adoption of generative AI.
Microsoft announced that will charge 30 dollars a month for generative artificial intelligence features in its productivity software, Microsoft 365.
This new fee represents an increase from 53 to 83 percent in the monthly cost of the enterprise versions of the service, which was formerly known as Office 365 and is used by millions of workers around the world.
Satya Nadella, CEO of Microsoft, defended this pricing decision on Wednesday, July 19, as part of what he described as “a technological revolution” that will add “an innovative dimension” to one of the company’s main products, publishes the Financial Times.
New artificial intelligence features automate routine tasks and increase productivity, making them a valuable addition to traditional apps like Word and Excel, as well as cloud services like Teams.
Microsoft and artificial intelligence
Following the announcement, Microsoft shares rose to a new record high, demonstrating the market’s interest and anticipation around generative artificial intelligence.
In addition, at its annual partner conference, the company introduced other products and services based on generative AI, including an enterprise chatbot to compete with the use of OpenAI’s ChatGPT, a company that Microsoft itself supports financially.
Microsoft’s decision to charge for generative artificial intelligence comes as no surprise, as the technology has become increasingly relevant in the business world.
Artificial intelligence is expected to continue to advance and transform business strategies in many industries (more than you might expect).
The impact on Microsoft’s finances will be significant if people accept the changes.
More than 382 million people used commercial versions of Office 365 in the last quarter, highlighting the massive reach of this technology.
Although the decision to charge for these features is a bold one, some analysts consider the price to be on the high end compared to other generative AI services on the market.
OpenAI, for example, charges $20 a month for its premium version of ChatGPT, while Microsoft has a $19 monthly fee for its AI coding assistant, GitHub Copilot, aimed at businesses and developers.
Changes
Nadella said the new AI-powered features provide “straight answers” and “will reduce the need to send tens of thousands of internal emails,” allowing workers to interact within the software.
Although it is understood that the landing of AI is inevitable, some analysts say economic uncertainty may make companies cautious in their technology spending.
So some (or many) are likely to wait for others to test and hard data to prove that touted increase in productivity before fully embracing the new generative AI features.
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