Google Makes Workspace AI Free for Business Users, Increases Base Subscription Rates

Google Expands AI Features at No Additional Cost

Google has announced a significant shift for its business customers by offering its comprehensive AI features within the entire Workspace suite at no additional charge. Previously, utilizing AI enhancements in apps such as Gmail, Docs, Sheets, and Meet required subscribing to the Gemini Business plan, which cost an extra $20 per user monthly. This strategic move is part of Google's ongoing efforts to compete with companies like Microsoft and OpenAI in developing advanced AI-driven office solutions.

Price Adjustments Implemented

While Google is removing the additional fee for AI capabilities, it is simultaneously increasing the base price of all Workspace plans. Jerry Dischler, Google's president of cloud applications, indicated that businesses will see an approximate $2 rise in their monthly per-user costs for the AI-enhanced Workspace. Although pricing can vary depending on specific contracts, the base subscription has effectively risen from $12 to $14 per month.

Comprehensive AI Features Available

The AI functionalities integrated into Workspace include features such as email summaries in Gmail, automatic generation of spreadsheet designs and videos, a meeting note-taker, and comprehensive writing tools. Users will also gain access to the Gemini bot, which serves as a multifaceted AI tool capable of performing standard chatbot functions, retrieving information, and conducting thorough searches across data.

"Most of the time, when we talk to companies who are using AI, their big impediment is cost reasons," explained Dischler. "That's why they go in so gingerly. Like, 'wow, this is a lot of money, and let's prove the value.' All right, now you get the AI. You have the value."

Industry-Wide Moves Toward Integration

Google is not alone in this trend. Microsoft recently revealed that its Copilot Pro AI features would be incorporated into the standard Microsoft 365 subscription for certain levels, following a similar path of eliminating additional AI fees. While Microsoft's changes currently affect only specific subscription types and regions, both companies recognize the opportunity to introduce users to novel product usage and expand their customer bases. They are investing in the hope that the broad dissemination of AI capabilities will yield long-term benefits.