Microsoft stock pops on A.I. subscription for Microsoft 365

Satya Nadella, CEO of Microsoft, speaks during an interview in Redmond, Washington, March 15, 2023.

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Microsoft shares rose more than 5% on Tuesday after the company announced a new artificial intelligence subscription service for Microsoft 365: The company will charge users an additional $30 per month for the use of generative AI with tools like Teams, Excel and Word.

Adding on the subscription to Copilot, a generative AI assistant that works across Microsoft 365 programs, should reportedly cost enterprise users an additional 50% or more per month. Copilot’s capabilities reportedly include summarizing meetings, analyzing spreadsheet data and designing presentations, but the tool is in currently in early testing stages and is not yet available to the public.

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The updates come as the race to offer consumer-driven generative AI tools heats up among tech giants like Microsoft, Google, IBM and more.

The company also announced a significant update to Bing Chat, its AI chatbot, on Tuesday: visual search. Users can now take or upload a photo to Bing Chat and ask for more information on it through the desktop or Bing apps.

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