Microsoft is increasing the price of its consumer Microsoft 365 bundle by $3 per month as it adds AI features to various applications. It’s the first price increase for Microsoft 365 (formerly known as Office 365) since it launched 12 years ago.

The Microsoft 365 bundle price is increasing in the U.S. for the first time in a dozen years as the tech giant adds artificial intelligence tools into longtime products like Microsoft Word. The cost of Microsoft 365 Personal and Family subscriptions will rise by $3 per month,

Google announced that it was doing away with a separate upcharge for its Gemini AI features in Workspace and forcing you to pay for it instead whether you want AI or not. Today, Microsoft is following suit,