Canva advertised its new AI features

before raising costs by more than 300%, yet the business claims the price increase was justified.

The design tool provider claims the pricing changes reflect a much-improved product range

Canva subscription prices are set to skyrocket for enterprise users after the firm confirmed it will be upping the cost of Canva Teams to reflect its expanded, AI-powered product range.
Some consumers may anticipate price increases of more than 300%, according to reports. An email from Canva was shared by a user, informing them of an increase in price from $119.99 to $500 annually, with a discounted 12-month period in between.

A user on Threads commented that the email update regarding the price rise was “maybe not the best communication strategy,” while a Canva client called the pricing hike “one of the biggest increases I have ever seen YoY.”
All business clients are seeing price increases, however the precise amount of the raw price adjustment varies by nation.

For instance, according to Information Age reporting, the monthly cost of Canva Teams per person will increase to $13.50 in Australia, or $67.50 for five users. The monthly cost for five users was $39.99 before.

The price hikes are justified, according to Canva, with a spokesperson from the firm telling ITPro that the company’s expanded product range necessitated a bump in price.
“Our original pricing reflected the early stage of this product and has remained unchanged for the last four years. We’re now updating the price for customers on this older plan to reflect our expanded product experience,” the spokesperson said.

Canva acknowledged that pricing changes “aren’t always easy” and is offering eligible customers 12 months of discounted pricing before the changes take full effect. This discounted pricing still represents an increase, at least according to reports from users.

Canva’s workspace range

This news follows numerous announcements from the firm that show its serious about adding AI tools to its portfolio. At the firm’s flagship ‘Canva Create’ event in 2023, it unveiled a raft of new updates.
Targeting a wider workplace market to expand beyond its typical graphic design audience, Canva announced new features to target problem solving in areas such as marketing, sales, HR, and creative.

Within these features were included a number of AI enhancements, such as ‘Magic Replace’ which replace an asset across an entire set of designs if an outdated graphic or logo needs to be changed.
Similarly, ‘Magic Eraser’ promises to remove any unwanted element of an image, while ‘Magic Edit’ allows one visual object to be replaced with an entirely new one using generative AI capabilities.