Microsoft adds new tier to its Office suite, priced more that 50% higher, here's what it offers

Microsoft is introducing a new top-tier subscription for its Office productivity suite, Microsoft 356 E7, priced at $99 per user per month. That’s a 65% increase as compared to the present E5 plan which costs $60 after upcoming price hikes.

The E7 bundle includes advanced artificial intelligence tools, aiming to attract enterprise customers seeking improved productivity features. According to a report by CNBC, Microsoft has confirmed that Copilot upgrades and the launch of the E7 tier will take place on May 1, 2026.

What E7 Includes

The new plan combines several add-ons:

Together, these additions are designed to help organizations securely deploy AI across workflows while boosting efficiency.

Copilot Cowork launch

Alongwith E7, Microsoft is rolling out Copilot Cowork, developed in association with Anthropic. The tool is designed to handle multi-step tasks such as sending secluded emails, preparing meeting materials and also coordinating internal calls. Copilot Cowork will also be available this month as a research preview for clients in Microsoft’s Frontier program, which provides early access to AI features.

Microsoft’s strategic push

Microsoft has invested more than $100 billion in data center infrastructure, including Nvidia chips, to power AI models.

By bundling AI into office subscriptions, the company now aims to generate returns on that investment. Judson Althoff, CEO of Microsoft’s commercial business, said the new tier should drive adoption of Copilot and encourage more organizations to upgrade from E5.Microsoft 365 commercial products and cloud services accounted for 30% of company revenue in the December quarter. While seat growth slowed to 6%, Microsoft is increasingly monetizing each user through AI add-ons. CEO Satya Nadella recently revealed that 15 million Copilot seats have been sold, representing about 3% of commercial Microsoft 365 subscriptions.