Microsoft's Move to Make People Pay for AI Starts to Pay Off

Earlier this year, Microsoft stopped trying to convince consumers to pay extra for artificial intelligence features in its popular Office 365 software, instead opting to add the AI features by default while increasing the lowest price of the software by 30%. That strategy is showing early signs of wringing a few extra bucks out of individual Office customers.

Revenue from consumer subscriptions to Office 365 rose 10% in the three months ending in March compared to the same period a year earlier, a faster rate of growth than in each of the four quarters prior, the company said Wednesday. Chief Financial Officer Amy Hood said the growth resulted from the January price increase, which hiked prices to $13 a month per household or $10 for individuals.