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Microsoft stock goes wild after announcing a $30/mo AI subscription for Microsoft 365

Elinor Rozenvasser Updated: August 3, 2023 • 4 min read

Key Points:

  • Microsoft announced on Tuesday that it will be adding a new AI subscription service to Microsoft 365. The service will allow users to access AI-powered features in Microsoft Teams, Excel, and Word.
  • The generative AI subscription will cost an additional $30 per month for individual users. For enterprise users, likely an additional 50% or more per month.
  • The new service is part of Microsoft's effort to offer more consumer-driven AI tools. Other tech giants, such as Google and IBM, aim to beat Microsoft to the top with similar services.

Here’s what happened:

Microsoft shares were on fire today, rising a whopping 5.8% shortly after the company announced a new AI subscription service for Microsoft 365. 

This new subscription, called Copilot, is a generative AI assistant that works across Microsoft 365 programs. It can do things like rank incoming emails, summarize meetings, analyze spreadsheet data, offer writing prompts, and design presentations. The company will charge users an extra $30 per month for the use of generative AI with tools like Teams, Excel, and Word.

This is a big deal because it's the first time Microsoft has offered a subscription-based AI service. And it's not just for consumers either. Businesses can also subscribe to Copilot, which could increase their monthly costs by as much as 83%.

It's grounded in your business data in the Microsoft Graph — that's all your emails, calendar, chats, documents, and more

The announcement comes as the race to offer consumer-driven generative AI tools heats up. Other tech giants like Google, IBM, and Amazon are all working on similar products.

"It's grounded in your business data in the Microsoft Graph — that's all your emails, calendar, chats, documents, and more," Microsoft wrote in a release. "The tool abides by a user's preset security, privacy, and compliance policies for Microsoft 365."

So, there you have it. Microsoft is getting into the AI subscription game, and it's bringing some pretty cool features to the table. But what does this mean for the average Joe? It’s safe to say that AI is here to stay, and it’s about to change a whole lot more than Microsoft’s share price.

Here's what it means:

AI is about to change your money game

AI is not just changing the way we live our lives, it's also changing the way we manage our money.

In the past, you might have had to call your bank to talk to a human about your finances. But now, you can just chat with a chatbot. And AI isn't just replacing human interaction, it's also making our finances smarter.

For example, AI can help you track your spending and alert you when you're about to overspend. It can also help you choose the right investments for your risk tolerance.

And the best part is, you probably don't even realize that AI is involved. It's just working in the background, making your financial life easier and more efficient.

If it smells like AI, and it looks like AI…

Companies are massively adopting AI technology as a first line of defense for customer service, marketing, security, and human interaction. These are some examples of where you can smell the AI from a mile away: 

  • Chatbots: Chatbots are becoming increasingly common in the financial services industry. They can answer your questions about your account, help you make transactions, and even provide financial advice.
  • Personalized recommendations: AI can be used to provide personalized recommendations for investments, insurance, and other financial products. This can help you make better decisions about your finances and reach your financial goals faster.
  • Fraud detection: AI can be used to detect fraudulent activity, such as credit card fraud or identity theft. This can help protect your finances from harm.

Here’s what to do: 

The future of AI in money and investing is very bright. As AI technology continues to develop, we can expect to see even more innovative ways to use AI to manage our finances.

For example, AI could be used to create a personalized financial dashboard that tracks your spending, investments, and other financial information. This dashboard could provide insights into your spending habits and help you make better financial decisions.

AI could also be used to create a virtual financial advisor that can help you with everything from retirement planning to investment advice. This advisor would be able to access all of your financial information and use AI to provide personalized advice that is tailored to your specific needs.

In a nutshell:

The possibilities of AI are endless, and the future of AI in money and investing is very exciting. The more we learn about this fascinating technology, the better we will be able to apply AI to our day-to-day finance practices. With all the hype that is building up from trend-setters, Microsoft's AI implementation hints that this is only the beginning of an artificial, yet very intelligent, future. One that I can't wait to acquaint myself with.


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Elinor Rozenvasser is a content writer and editor with a knack for finance. She holds a Bachelor's in Communications and Business from Reichman University, and has been swimming alongside finance specialists for over a decade. She's not your typical financial writer, though. She's more likely to use witty puns and sarcasm than jargon and technical terms. But don't let that fool you. She's still a whiz when it comes to explaining complex financial concepts in a way that anyone can understand. If there's any writer who can make finance fun and engaging, Elinor is your girl. She's sure to leave you laughing (and learning) long after you've finished reading her work.