Microsoft requires Microsoft 365 for Notepad and Paint AI

Microsoft has introduced new AI features in its Notepad and Paint applications that require users to have a paid Microsoft 365 account to access. This marks the first time some features in these popular apps are behind a paywall. The new AI tools include an image generator in Paint and text rewriting capabilities in Notepad. Users without a subscription can still use the apps, but certain features will be grayed out. Microsoft has not provided additional comments on this change. An expert from the Leavey School of Business, Ram Bala, explained that this move is a part of a "freemium strategy." Companies often need to charge for AI-based services due to the higher costs associated with using advanced technology. Bala noted that more tech companies will likely explore pricing models for their AI products. Microsoft has invested heavily in AI technology, especially through its partnership with OpenAI. The company has added AI features to many of its services, including Xbox and the Copilot application for Windows. However, some of these changes have resulted in increased prices for Microsoft 365 subscriptions. Not all of Microsoft's AI innovations have been well-received. The Copilot feature called Recall, which tracks user activities to enhance search features, faced criticism. Concerns about privacy arose when it was revealed that Recall could capture sensitive information, leading to a delay in its rollout.