Microsoft 365 Family Plans Slash OneDrive Storage to 2TB While Adding Shared Copilot AI

Microsoft is updating its Microsoft 365 Family and Premium subscriptions to allow up to five additional people on a plan to share Copilot and AI usage features, moving away from limiting access to just the primary account holder. To offset the expanded AI access, Microsoft is cutting OneDrive storage from an individual 1TB per account down to a single 2TB shared pool across all family members. Microsoft claims the new shared storage pool provides more flexibility for individual members who exceed 1TB, though the reduction effectively establishes a ceiling that will likely drive upselling for standalone storage tiers. The subscription changes are expected to roll out over the coming months, and the shift toward "more flexible AI usage" could result in some subscribers paying more depending on their Copilot activity. "Existing subscribers in eligible markets might also qualify for transitional bonus storage." — Microsoft Support Note