In a notable shift, Microsoft has announced that access to certain features within its beloved Notepad and Paint applications will now require a paid subscription. This marks a significant first for the tech giant, as users will need a Microsoft 365 account to unlock the latest artificial intelligence enhancements integrated into these programs. Among the new capabilities are an innovative image generator in Paint and AI-driven text rewriting in Notepad, both designed to elevate user experience.
Subscription-Based Access to AI Features
While the introduction of a paywall for these advanced features may raise eyebrows, it is important to note that Windows users without a Microsoft 365 subscription will still retain access to the core functionalities of Notepad and Paint. However, features that necessitate a subscription will be visibly grayed out, indicating their inaccessibility.
Ram Bala, an associate professor of business analytics at the Leavey School of Business at Santa Clara University, suggests that this move aligns with a broader “freemium” strategy aimed at stimulating demand for premium features. Bala emphasizes that the operational costs associated with deploying large-language models for AI tasks are significant, making it increasingly challenging for companies to offer such features at no cost. “Delivering new AI features for free is becoming a loss-making proposition,” he remarked, highlighting a trend toward usage-based pricing models for AI products.
Bala also pointed out that Microsoft’s approach is reflective of a wider industry trend, where tech companies are experimenting with various pricing structures for AI services. He cited examples like GPT APIs, which utilize token-based pricing, and Mistral’s recent introduction of an OCR product that charges per 1,000 pages. This experimentation indicates a shift towards pricing based on resource utilization, such as the number of sessions or tokens consumed.
Microsoft’s commitment to AI innovation is evident in its substantial investments in OpenAI, a leader in the field. The company has been actively incorporating AI features across its suite of applications and services, including enhancements to its Xbox gaming division and the integration of voice and reasoning capabilities through its Copilot app. However, these advancements have not come without controversy; some features have led to increased subscription costs in certain regions, with Microsoft 365 priced at approximately per month or annually.
Despite the ambitious strides in AI, not all of Microsoft’s initiatives have garnered positive feedback. The rollout of the Copilot feature, known as Recall, faced delays amid concerns over privacy and security. Reports surfaced indicating that Recall could potentially capture sensitive information, such as credit card numbers and social security numbers, during its operation. This has prompted Microsoft to address user apprehensions regarding the app’s safety and reliability.
