Microsoft Locks Windows AI Features in Notepad and Paint Behind Subscription Paywall

Microsoft is restricting AI-powered features in Notepad and Paint to Microsoft 365 subscribers, requiring a paid plan to access AI-driven text and image tools.

Microsoft’s classic Windows apps, Notepad and Paint, are receiving AI-powered upgrades—but with a catch.

Access to the latest features, such as text rewriting in Notepad and image generation in Paint, now requires a Microsoft 365 subscription. The move reflects Microsoft’s broader strategy to monetize its AI tools and reshape how users interact with its long-standing applications.

AI Upgrades in Notepad and Paint Signal a Shift

Microsoft is transforming how users interact with its classic apps by introducing AI-driven tools. Notepad now features a “Rewrite” feature, designed to assist users in modifying text.

Microsoft Notepad AI content rewrite official
Microsoft’s AI content rewrite feature in Notepad (Image: Microsoft)

By selecting a portion of text, users can choose from three rephrased alternatives, adjusting tone, length, or style as needed. The feature aims to streamline writing and editing, simplifying content creation for both casual and professional users.

Meanwhile, Paint has been enhanced with an “Image Creator” tool. This allows users to input descriptive text prompts and receive three AI-generated image variations.

AI features available in Microsoft Paint (Image: Microsoft)

The feature simplifies creative tasks, enabling even novice users to create digital art. However, Microsoft emphasized its commitment to ethical AI practices, stating that content filtering mechanisms are in place to block the generation of harmful, offensive, or inappropriate images.

Subscription Access and AI Credit System

Accessing these AI capabilities requires an active Microsoft 365 subscription and a Microsoft account. Each subscriber is allocated 60 AI credits per month.

These credits apply not only to Notepad and Paint but also to other applications like Word, Excel, PowerPoint, Outlook, OneNote, Designer, and Photos. Each AI-driven action, such as rewriting a sentence or generating an image, consumes one credit.

For users with greater AI needs, Microsoft offers a Copilot Pro subscription, which provides a higher allocation of credits. The credit system, while designed to offer flexibility, introduces potential restrictions. Frequent users of AI tools could find the monthly credit cap limiting, necessitating an upgrade to access more extensive features.

Price Increases and Rollout Strategy

The rollout of these AI features coincides with a price increase for Microsoft 365 subscriptions. In the United States, the Personal plan now costs $9.99 per month, while the Family plan, supporting up to six users, is priced at $12.99. This adjustment reflects Microsoft’s broader investment in enhancing AI-driven productivity tools.

The AI tools were initially introduced to Windows Insiders in select regions, including the U.S., UK, Germany, France, Italy, and Canada.

In markets like Australia and New Zealand, Microsoft 365 subscribers can leverage AI credits to access these features. Earlier previews of AI features, such as the Copilot tool in Notepad, were shared with Windows Insiders in February 2024, providing early access for feedback and testing.

Hardware Demands and Privacy Considerations

Not all AI tools are universally accessible. Features like generative fill in Paint require Copilot+ certified PCs equipped with Neural Processing Units (NPUs) capable of handling at least 40 TOPS (Tera Operations Per Second).

This level of processing power ensures smoother AI performance, particularly for tasks involving complex generative models. Conversely, simpler tools like generative erase are accessible on all Windows 11 devices, irrespective of hardware specifications.

Addressing privacy concerns, Microsoft emphasized that while device identifiers and user prompts are collected for misuse prevention, AI-generated outputs are not stored. “Microsoft emphasizes that while it collects device identifiers and user prompts to monitor and prevent misuse, it does not store the outputs of these interactions.”

This approach seeks to balance feature functionality with user privacy, though some privacy advocates argue that the requirement for account-based access could still pose risks.

Microsoft’s Broader AI Strategy

The integration of AI tools in Notepad and Paint reflects Microsoft’s broader push toward automating tasks and enhancing productivity. This is part of its larger shift to a service-as-software model, where AI agents handle routine processes.

Microsoft has introduced the Copilot Pro features in 222 markets markets like Australia, with some Designer features, like inline editing capabilities available only in English including United States, United Kingdom, Australia, India, and New Zealand. 

Microsoft has consolidated its AI development efforts under the newly formed CoreAI – Platform and Tools division.

This move aligns with the company’s focus on embedding AI across its software suite, not just enhancing existing applications but redefining them.

However, the subscription model may restrict access to these advanced features, potentially sidelining casual users who are unwilling or unable to commit to a paid plan.

Balancing Innovation with Accessibility

Microsoft positions these AI tools as enhancements that streamline tasks and foster creativity. Yet, the credit system’s monthly cap and the high hardware requirements for some features may present barriers.

While the AI credit system provides flexibility, it could introduce friction for power users. For example, running out of credits mid-project could be frustrating for creative professionals relying on these AI enhancements.

Microsoft maintains that its approach strikes a balance between innovation and user needs, offering flexibility for occasional users while providing advanced options for heavy users through higher-tier subscriptions.

Yet, as AI becomes more embedded in Windows applications, the tension between accessibility and monetization remains a critical point.

Markus Kasanmascheff
Markus Kasanmascheff
Markus has been covering the tech industry for more than 15 years. He is holding a Master´s degree in International Economics and is the founder and managing editor of Winbuzzer.com.
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