Microsoft’s CEO Satya Nadella recently spoke at the company’s Ignite Spotlight event in Seoul on November 15, 2022. Following the announcement of pricing for its new Microsoft 365 artificial intelligence subscription service, Microsoft shares reached a record high. The stock increased by 4%, closing at $359.49. This marks a 50% increase for the year, surpassing the previous record set on June 15, when the stock closed at $348.10.
Microsoft’s Copilot subscription service incorporates AI into popular Office products such as Word, Excel, and Teams. The service will be available for an additional $30 per month, potentially leading to an 83% increase in monthly prices for enterprise customers. This move allows Microsoft to generate additional revenue through recurring subscriptions.
This announcement highlights Microsoft’s dedication to enhancing its suite of Office software, making it more appealing to businesses that wish to integrate AI into their workflows. Microsoft has invested heavily in generative AI, specifically through a substantial investment in OpenAI, the organization behind ChatGPT. Microsoft Copilot, which was initially revealed in March, offers features such as designing presentations, providing writing prompts, summarizing meetings, and ranking incoming emails. While it is already being tested by 600 customers including Goodyear and General Motors, Microsoft has yet to announce when it will be available to the general public.