Microsoft will update its M365 Copilot service tiers on April 15. The company is rebranding the paid subscription to M365 Copilot (Premium) and the free version to Copilot Chat (Basic).

Enterprise customers with over 2,000 seats will lose basic AI access within core Office applications. Organizations must pay $30 per user monthly to maintain integrated functionality in Word, Excel, and PowerPoint.

This restriction targets high-volume clients to drive adoption of the flagship AI product. Microsoft aims to increase revenue through these upgrades before its fiscal year ends in June.