Microsoft 365 Family and Premium Subscriptions to Share AI Features and Adjust Storage Model

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Microsoft will let Microsoft 365 Family and Premium users share AI-powered Copilot benefits and change OneDrive storage from per-user to shared 2TB. These updates roll out after May 2027 renewals and aim to offer more flexible AI use and storage management.

Microsoft is updating its Microsoft 365 Family and Premium subscription plans to allow sharing of AI-powered Office features, addressing a previous limitation where only the primary account holder could use them. According to a leaked email obtained by The Verge, starting soon, subscribers will be able to share Copilot AI benefits and usage with up to five additional people on the same plan. This enables all plan members to access AI capabilities integrated into Office apps and manage AI access for younger family members.

Alongside AI sharing, Microsoft is changing the AI usage model from individual limits to a shared AI usage allowance across the plan, allowing subscribers to allocate usage according to their preferences. Moreover, subscribers will have the option to purchase more AI usage if needed, potentially affecting overall costs depending on individual consumption.

A significant change involves OneDrive cloud storage: previously, each user had 1 TB of personal storage, but going forward, the plans will consolidate this into a single 2 TB shared storage pool for the entire family or premium group. Microsoft states this change enhances storage flexibility, especially when a member exceeds 1 TB usage, but it may also encourage upselling additional storage plans.

These updates are set to apply after the first subscription renewal post-May 2, 2027. Microsoft also notes that existing subscribers in certain markets may receive transitional bonus storage and dedicated support for high storage usage families.

This announcement coincides roughly one year after the launch of Microsoft 365 Premium, which bundles Copilot Pro features with a Microsoft 365 Family subscription for $19.99 monthly. The new flexible AI usage policy could result in some subscribers paying more based on their AI feature consumption patterns.

Overall, these changes mark a significant shift toward shared AI and storage resources within Microsoft 365 subscription tiers, aiming to provide greater flexibility but also introducing potential cost implications.