Microsoft 365 review: pricing tiers for Personal, Family, Business, and Enterprise plans, Copilot AI features, pros, cons, and how it compares to Google…
Microsoft 365 is Microsoft's subscription productivity suite, combining the Office desktop and web apps (Word, Excel, PowerPoint, Outlook), cloud services (OneDrive, Exchange, SharePoint, Teams), and Copilot AI features into tiered plans for individuals, families, businesses, and enterprises. It evolved from Office 365, launched in 2011, and was rebranded Microsoft 365 in 2020.
As of 2026, Microsoft has been rolling AI capabilities directly into its consumer and business plans, positioning Copilot as a core part of the subscription rather than a separate add-on for many tiers.
The suite includes the core Office applications for documents, spreadsheets, and presentations, alongside Outlook for email and calendaring, Teams for chat and video meetings, and OneDrive/SharePoint for cloud file storage and collaboration. Business and Enterprise tiers add administrative controls, device management through Intune, and security tools like Microsoft Defender.
Copilot AI features are now embedded across Word, Excel, PowerPoint, Outlook, and OneNote on eligible plans, offering AI-assisted writing, data analysis, and presentation generation, with usage governed by monthly AI credit allotments on consumer plans.
Consumer pricing starts at $9.99 per month for Microsoft 365 Personal (one person) and $12.99 per month for Family (up to six people), both including Copilot AI credits for the subscription owner. Business pricing, updated July 1, 2026, starts at $7 per user per month for Business Basic, $14 for Business Standard, and $22 for Business Premium, which now includes stronger security features relative to Standard than before.
Enterprise-tier plans (E3, E5) are typically sold through custom Microsoft agreements and add compliance, analytics, and advanced security features for large organizations. Existing customers keep their current pricing until renewal even as new pricing rolls out.
Microsoft 365 includes the Office apps (Word, Excel, PowerPoint, Outlook, OneNote), Teams, cloud storage via OneDrive and SharePoint, and, on most plans, Copilot AI features.
Personal plans start at $9.99 per month and Family at $12.99 per month. Business plans start at $7 per user per month for Business Basic, rising to $14 for Standard and $22 for Business Premium as of July 2026.
Yes, most Microsoft 365 Personal, Family, and Business plans now include Copilot AI features with a monthly usage allotment, though full Copilot licensing can also be purchased separately for higher usage.
Business Premium includes everything in Business Standard plus advanced security features, Intune device management, and threat protection, and as of 2026 costs only $8 more per user per month than Standard.
Microsoft 365 centers on the Word/Excel/PowerPoint app ecosystem and deep Windows/enterprise identity integration, while Google Workspace centers on browser-based Docs, Sheets, and Gmail with tighter real-time collaboration; the choice often comes down to existing IT infrastructure and team habits.
Microsoft rebranded Office 365 to Microsoft 365 in 2020 to reflect an expansion beyond Office apps into a broader productivity, collaboration, and security platform.