Microsoft is considering a new AI-loaded software bundle for Microsoft 365, sources say

After years of internal buzz and false starts, Microsoft is considering rolling out its long-rumored E7 enterprise productivity software bundle, a pricier, AI-loaded version of Microsoft 365, according to two people familiar with the plans.

Microsoft 365 is a popular suite of productivity software that includes widely used tools such as Microsoft Word, Excel, and PowerPoint. Microsoft sells this software primarily in bundles called E3 and E5, where the E stands for “enterprise.” E3 is a more basic offering, while E5 has more bells and whistles.

A larger, more expensive “E7” software bundle has long been rumored and has earned a kind of mythical status inside Microsoft, with employees and salespeople debating and guessing whether it will ever appear.

Microsoft’s AI-packed E7 bundle comes as competitors like Google, Salesforce, and nearly every major software-as-a-service company rush to embed AI tools and autonomous agents into their products. Software stocks have taken a significant hit this year as investors worry that generative AI tools will upend traditional software products.

Microsoft declined to comment.

The new E7 bundle under consideration includes everything in the E5 bundle, plus AI features such as Microsoft Copilot and the company’s new AI agent hub, Agent 365, the people said.

Microsoft is looking into per-seat and consumption-based pricing for E7, but could charge up to $99 per user per month, the people said. E5’s current advertised price is $57 per user per month while Copilot is advertised as an add-on for $21 per user per month.

The company previously floated a new AI software bundle in 2024, but paused the plan.

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