In a significant move for Office app users, Microsoft is making AI features available at no additional cost. Many advanced AI capabilities, previously only available to Microsoft 365 Copilot subscribers, will be available to all users at no additional cost starting in 2026.

Microsoft Office offers AI for free

This will allow users in Outlook, Word, Excel, and PowerPoint to use features like Copilot Chat and Agent Mode without requiring a $30 monthly Copilot license.

With this move, the company aims to enhance the chatbot experience in Outlook. A free version of Copilot Chat was previously added to Microsoft 365 apps in September.

With the new update, Copilot Chat will be able to view the entire Outlook inbox, calendar events, and meetings. This capability allows users to sort their inbox, schedule meetings, and prepare for meetings for free.

Another key feature available for free is Agent Mode. This mode was only available to paid Microsoft 365 Copilot subscribers in September. Now, Word, Excel, and PowerPoint users also have access to Agent Mode. In Excel and Word, Agent Mode can create complex tables and documents with a single user command.

Excel users can also choose between Anthropic and OpenAI logic models. In PowerPoint, Agent Mode can update existing presentations according to company templates, create new slides, rewrite and format text, and add images.

Microsoft states that it aims to make these free AI additions available in preview to Microsoft 365 subscribers by March 2026. In addition to these major updates, Microsoft plans to launch Microsoft 365 Copilot Business, a new service aimed at small and medium-sized businesses, next month. This specialized service is designed for businesses with fewer than 300 users and will cost subscribers $21 per month.