Google makes workspace AI free—With a slight price bump for subscriptions

In a major shift for its Workspace suite, Google has announced that it will be offering its AI-powered features for free across Gmail, Docs, Sheets, Meet, and other Workspace apps. Previously, users needed to pay an additional $20 per user per month for the Gemini Business plan to access these tools, but now, businesses can leverage Google’s AI at no extra charge.

The move marks a significant step in Google's competitive race with Microsoft, OpenAI, and other companies to establish a dominant position in the rapidly growing market for AI-powered productivity tools.

"AI will now be fully available for all Workspace users," said Jerry Dischler, Google’s president of cloud applications. "We are offering the most vertically integrated AI product out there today. This is an opportunity for businesses to unlock value across the entire Google ecosystem."

The AI tools included in Google Workspace span a range of capabilities designed to improve productivity. Gmail users will benefit from email summaries and smart writing suggestions, while Docs and Sheets will feature AI-generated designs and templates. Meeting participants can take advantage of an AI-driven note-taker, while the NotebookLM research assistant and writing tools across Google apps will enhance the workflow. Additionally, users will have access to Gemini, Google's powerful AI bot that can help find information, answer questions, and search across a user’s documents, making it one of the most advanced AI tools in Google's arsenal.

While Google is removing the premium cost for AI access, it is raising the base subscription price for Workspace. Dischler confirmed that the price for the standard Workspace plan would rise by approximately $2 per user per month, from $12 to $14. Companies that have more complex contracts may see different pricing adjustments, but the general increase will be modest. Despite the price increase, Google is betting that this AI integration will prove valuable enough for businesses to offset the cost, especially as companies look to integrate AI features into their daily workflows.

Dischler explained that the move to offer AI at no extra cost comes in response to feedback from businesses who expressed concerns about the cost of adopting AI technology. "Most businesses are hesitant to fully adopt AI because of cost," he said. "By making it free, we are helping companies see the full potential of what AI can do to improve productivity, streamline operations, and drive long-term growth."

This decision follows a similar shift by Microsoft, which in November made its Copilot AI features a standard part of the Microsoft 365 subscription. While Microsoft’s move was initially limited to Personal and Family subscriptions, it shows that big players in the tech industry are prioritizing widespread AI adoption as they seek to retain and attract customers.

The new AI-powered Workspace tools are expected to transform the way businesses operate, providing easy-to-use AI solutions that integrate seamlessly with Google’s suite of productivity apps. As companies continue to explore AI’s capabilities, Google hopes that this expanded offering will encourage more businesses to adopt its cloud-based solutions, making Google Workspace an even more attractive choice in the competitive AI market.

Google's strategy signals a shift in how tech companies view AI: as an essential tool for businesses, not just an optional upgrade. By lowering barriers to entry and integrating AI into all levels of the Workspace platform, Google is positioning itself to become the go-to platform for businesses looking to harness the power of AI.