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Microsoft 365 Family Subscribers to Share Copilot AI Benefits as OneDrive Storage Shrinks to a Shared 2TB Pool

Microsoft will let Family and Premium subscribers share Copilot and AI features with up to five people, but OneDrive storage drops from 1TB per person to a shared 2TB pool.

AI News Feed · 2026-10-09 15:38

The company outlined several changes in the email that it said would arrive over the coming months. Under the heading of AI access, subscribers will be able to share Copilot benefits and AI usage with other members of their plan and manage AI access for younger family members. A second change replaces individual AI feature limits with a single AI usage allowance that can be applied to whichever advanced AI features a subscriber uses most, and allows customers to buy additional AI usage when needed.

The storage terms are changing as well. Microsoft said the cloud storage allowance will move from 1TB per person to 2TB of shared storage across the plan, so that members can draw on unused space while keeping their own accounts and files private. According to the email, that change takes effect after a subscriber's first renewal following 2 May 2027.

The storage shift appears to be the least favorable part of the update. Rather than 1TB of OneDrive storage per account, the plan now caps the whole household at 2TB of shared space. Microsoft's stated rationale is that a single pool is more flexible if one member exceeds 1TB, but the arrangement also gives the company an opening to sell additional OneDrive storage. A Microsoft support note cited by The Verge said existing subscribers in eligible markets might also qualify for transitional bonus storage, and the company said it plans to provide support to families that use a large amount of storage.

The announcement comes roughly a year after Microsoft 365 Premium launched at $19.99 a month, combining the benefits of Copilot Pro with a Microsoft 365 Family subscription. The move to a single AI usage allowance may leave some subscribers paying more for AI features depending on how they use Copilot, since the pooled allowance replaces per-feature limits that previously applied to individual accounts.

The email did not specify exact dates for the AI sharing and allowance changes beyond describing them as coming in the next few months. Microsoft's 365 Family plan has long been structured around sharing Office applications and OneDrive space among up to six people; the new terms extend that sharing model to AI features while consolidating the storage that accompanies it.