Microsoft raising prices for AI features in Office 365, risking customer loyalty and potential losses

From Nasdaq: 2025-01-19 08:30:00

Microsoft’s success with Microsoft 365 has led to 80.4 million subscribers, generating up to $10 billion annually. A recent price increase of $3 monthly and $30 annually aims to cover AI investments. Subscribers get AI credits, but some may not see the value. The move could lead to customer backlash and potential losses.

The risk of losing subscribers who don’t see the value in new AI features looms for Microsoft. While revenue may increase due to the price hike, customer loyalty could suffer. Tech giants continue to invest in AI, raising questions about consumer willingness to pay. The future of AI integration in products remains uncertain.

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Read more at Nasdaq: Microsoft Is Making Office Users Pay for AI. It Could Backfire.