Microsoft is making its Microsoft 365 Family subscription more useful for households that want access to Copilot, but the change comes with a storage trade-off. The company is expanding AI access to everyone sharing a Family plan while replacing individual OneDrive storage allowances with a single pool of 2TB for the entire subscription.

The changes also affect Microsoft 365 Premium, the company’s higher-tier subscription that combines productivity apps, cloud storage, and expanded AI capabilities. Until now, subscribers could share the included Office apps and OneDrive benefits with up to five other people, but the AI features were reserved for the person who paid for the subscription. Microsoft is now changing that arrangement, according to an email sent to subscribers and reported by The Verge.

Microsoft 365 Family finally lets everyone use Copilot

Under the updated arrangement, the primary subscriber and up to five additional members can access eligible AI features through their shared Microsoft 365 Family or Premium subscription. That brings Copilot benefits to as many as six people on a plan, rather than restricting them to the account holder.

The change addresses a longstanding limitation of Microsoft’s family subscription model. Although the subscription could cover six people, adding family members did not give them the same access to AI-powered productivity features that the paying subscriber received.

For households where several people use Word, Excel, PowerPoint, and Outlook, extending AI access could make the subscription more useful. Each member can benefit from eligible Copilot capabilities without needing a separate qualifying subscription simply to unlock those features.

However, shared access does not necessarily mean unlimited AI usage. Microsoft 365 plans have different AI entitlements and usage limits, and the company has indicated that AI usage arrangements can vary. Subscribers should check the terms attached to their particular plan rather than assume every member receives unrestricted access to every Copilot feature.

OneDrive storage drops from 6TB to 2TB across the family

The more controversial change concerns cloud storage.

Previously, Microsoft 365 Family provided up to 1TB of OneDrive storage per person for as many as six people. That meant a fully used subscription could offer a combined allowance of 6TB, with each member receiving an individual 1TB quota.

Under the new arrangement, the subscription includes 2TB of shared OneDrive storage across the entire group. The pool can be used by the primary subscriber and up to five additional members, allowing storage to be allocated according to each person’s needs rather than imposing a fixed 1TB limit on everyone.

That flexibility could benefit families in which one person stores large video libraries or photo collections while others barely use their cloud storage. Instead of one member running out of space while another leaves most of their allocation unused, everyone can draw from the same pool.

But the overall allowance is substantially smaller for households that previously relied on all six individual allocations. The shift from a potential 6TB to 2TB represents a reduction of 4TB, or roughly two-thirds of the maximum combined storage previously available.

Microsoft says the pooled model offers a more flexible way to manage storage. Still, families that regularly back up large photo libraries, videos, and computer files will need to pay closer attention to their combined usage. Those approaching the new limit may have to delete files, move some data elsewhere, or purchase additional OneDrive storage.

Importantly, shared storage does not mean shared access to private files. Microsoft says each member’s files and folders remain private unless they explicitly choose to share them. The change concerns how storage capacity is allocated, not whether other family members can browse someone’s personal documents.

When do the new Microsoft 365 changes take effect?

Microsoft is rolling out the new storage model in stages.

New Microsoft 365 Family and Premium subscriptions started receiving the 2TB shared-storage allowance on October 8, 2026. Existing subscribers will generally transition when their subscriptions renew on or after May 2, 2027, according to Microsoft’s current storage guidance.

Eligible existing subscribers in certain markets may also receive temporary bonus storage to help with the transition. Microsoft says affected customers will receive more information before the changes apply to their subscriptions.

The AI-sharing expansion and the storage changes are related subscription updates, but customers should check Microsoft’s communications for the specific timing and entitlements applicable to their accounts.

Microsoft 365 Premium remains a separate option

Microsoft 365 Premium, introduced a year ago, combines the benefits of the Family subscription with expanded AI capabilities. It launched at $19.99 per month, positioning it as an option for customers who want more AI functionality alongside Microsoft’s traditional productivity apps.

The new shared-AI arrangement makes Premium and Family more useful for households in which multiple people want to use Copilot. However, the storage reduction could complicate the value calculation for customers who chose Family partly because it offered substantial cloud storage across several accounts.

For light OneDrive users, the new arrangement may be perfectly adequate. For a household with several heavy users, though, 2TB can disappear quickly, particularly when smartphones automatically upload photos and videos or multiple PCs back up large folders.

Microsoft also allows subscribers to purchase additional storage, subject to the options available for their plans. That provides a way to expand capacity, although it could add to the cost of a subscription that already includes paid productivity and AI features.

Ultimately, Microsoft is making its family subscriptions more consistent by extending AI access to everyone on the plan. The trade-off is that subscribers will need to manage one smaller storage allowance instead of enjoying separate 1TB allocations. Whether the changes are worthwhile will depend on how much each household uses Copilot—and how much of its digital life it keeps in OneDrive.