At first glance, Microsoft Office 2024 looks like the wiser financial choice based on cost. For the Home version, you’ll pay $150 and receive today’s versions of Word, Excel, PowerPoint and OneNote for PC and Mac. For $250, you can purchase the Office Home & Business edition that adds Outlook email. These are locked-in versions of the software; you pay once and can use Office for as long as you’d like. However, this program will not receive feature updates, but it will get security patches. Microsoft refers to this nonsubscription model as its “perpetual” version.

Microsoft 365 works differently. Instead of buying the software, you pay an annual or monthly fee for as long as you want to use the Office apps. In addition to the apps listed above, 365 also includes OneDrive for cloud storage, Teams for video calls, Microsoft Defender for always-on system security and Microsoft Editor, an artificial intelligence-powered writing assistant that checks grammar, spelling and style in documents, emails and on the web. While designed for internet-connected activities, like accessing all of your documents from the cloud from any device, it also works when you are offline.

There are several subscription plans based on the number of users. If it’s just you, Microsoft 365 will cost $70 for the year or you can pay $7 each month. For up to six users, the annual fee is $100 or $10 per month. This plan comes with a 30-day free trial.

Let’s look at several cost scenarios to determine how much you could save. Microsoft releases a new version of Office about every three years. The cheapest option is to buy Office 2024 now for $150. In about three years, you’ll decide whether or not to buy the next version of Office. You’ll have access to all of the basics and your software will receive security updates. If you opt for 365, you’ll pay at least $70 each year. You will automatically receive all updates along the way, many that will be exclusive to 365. After three years, you will have spent around $210, noting that while you pay a bit more on a monthly plan, that can be easier on the budget.

Like with previous versions of its Office software, the new perpetual release gets a handful of relatively minor features already present in Microsoft 365, with other features left out. Office 2024 Word sees the addition of a Session Recovery feature that automatically restores all open documents if Word closes unexpectedly; your work will be saved. Word was also upgraded with Enhanced Collaboration Tools that let you delete all resolved comments in a single click. In Excel, new Dynamic Arrays will automatically update charts with newly added data when an array recalculates. You can also add pictures to cells. Powerpoint received the ability to video-record your entire presentation or a single slide and export it as a video file to share with others. As for AI integration, only 365 subscriptions will have access — and will have to pay extra for it.

Microsoft appears to be rethinking its pricing around Copilot for individuals — it appears that its $20 AI add-on isn’t as popular as it projected. In a recent announcement, Microsoft said it’s now including Copilot Pro features as part of its Microsoft 365 Personal and Family subscriptions in a handful of markets — Australia, New Zealand, Malaysia, Singapore, Taiwan and Thailand. Subscribers receive a monthly AI credit to use Copilot in Office apps for about $3 a month. However, only the primary account holder in a Family plan can access Copilot features, which seems like a dealbreaker. This rollout may be a test, hinting that Microsoft may apply similar adjustments in the U.S.

Here’s the thing about AI: It’s evolving so quickly and in so many different directions that I wouldn’t bet on one product at this time. There are AI platforms that are best at data analysis, others that excel at research, while others are good at generating pictures from text, and so forth. It’s a time of experimentation, not a time to lock into one AI product like Copilot — it simply can’t keep up with market developments. Keep your options open, and don’t buy a Copilot add-on at any price until the AI space has matured.

As for the choice between Office 2024 and 365, it’s up to you. If you rarely use any of the Office apps, a one-time purchase may work just fine. Otherwise, spring for 365 and stay connected to improvements that will make anything you do on your computer better.

Leslie Meredith has been writing about technology for more than a decade. As a mom of four, value, usefulness and online safety take priority. Have a question? Email Leslie at asklesliemeredith@gmail.com.