Microsoft 365 prices rise as Copilot Chat is folded into base plans

Microsoft has raised the price of most commercial Microsoft 365 subscriptions, effective 1 July 2026, and folded its Copilot Chat AI assistant into the core suites.

The increases vary by plan. Business Basic rises from $6 to $7 a month and Business Standard from $12.50 to $14, while Office 365 E3 goes from $23 to $26 and Microsoft 365 E3 from $36 to $39. Frontline plans see the sharpest jumps in percentage terms — Microsoft 365 F3 climbs from $8 to $10. Business Premium and Office 365 E1 are unchanged. In return, base plans now include Copilot Chat with inbox and calendar awareness plus access to Word, Excel and PowerPoint agents.

It matters because this is one of Microsoft’s broadest Microsoft 365 price rises in years, and the company is explicitly tying it to AI. Analysts have flagged that bundled AI raises the pressure to show real return on investment rather than novelty.

What to watch next: whether rivals follow suit, and whether businesses judge the bundled AI worth the higher bill.

Sources: Microsoft 365 pricing and packaging updates; CIO Dive: Microsoft 365 to include more AI tools — at a higher price.