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Microsoft officially launched a new tier called Microsoft 365 Premium at $19.99 a month. Microsoft plans to combine the best of classic Microsoft 365 productivity software with the state-of-the-art power of Copilot Pro, the AI assistant developed by Microsoft. With this, Microsoft is setting its suite of tools not only as office software but as a future-proof AI-driven productivity center.

The new Premium plan combines the familiar Microsoft 365 desktop applications like Word, Excel, PowerPoint, OneNote, and Outlook with state-of-the-art AI capabilities. Subscribers can access Copilot Pro, which introduces state-of-the-art features such as Researcher, Analyst, reasoning agents, and Copilot Labs. These AI-powered tools help with everything from in-depth research and content creation to data analysis and intelligent presentations. Microsoft has also confirmed that these reasoning agents will soon expand deeper into apps like Word, Excel, and PowerPoint.
The single biggest highlight of this plan is its elevated usage limits for AI-driven features. Microsoft 365 Premium provides highest limits for features like GPT-4o image creation, deep research, podcasts, advanced vision features, actions, and future voice integration. Also being launched as part of the Copilot app is a completely new Photos Agent that will help make it simpler for customers to structure, improve, and engage with images using AI.
The Premium tier is meant for teams and families, handling a maximum of six users. Every user receives 1 TB of cloud storage in OneDrive as well as Microsoft Defender to increase device and online safety. That said, it's worth mentioning that Copilot AI features are only available to the primary account holder as of now, although Microsoft could roll them out further in the future.
Along with the Premium plan, Microsoft is also introducing new Office icons for the 10 flagship apps. The new icons have a more vibrant, gradient-filled, and rounded Fluent look, inspired by the Copilot icon. The new look will roll out slowly on web, desktop, and mobile over the next few weeks, bringing a fresh and clean look to the entire Microsoft universe.
By having Copilot Pro as part of Microsoft 365 Premium, Microsoft is sending a strong message about the future of productivity. The emphasis is not so much on providing software tools but on delivering AI-powered work experiences to save time, unlock creativity, and enhance efficiency. For professionals, students, and households, this plan provides not only the applications they depend upon but an AI assistant to power up their workflow.




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