Previously, to use all the AI features in Gmail, Docs, Sheets, Meet, and the rest of Google Workspace, you had to pay for the Gemini Business plan, which cost $20 per user per month. As of January 14, that plan has become free as Google adds all the AI features to Workspace, as it races to compete with Microsoft, OpenAI, and others to build the AI-powered office suite of the future.
Workspace’s AI features include access to the Gemini chatbot, email summaries in Gmail, spreadsheet and video designs, automated meeting notes, a powerful NotebookLM research assistant, and in-app writing tools. Google has positioned itself as having the most vertically integrated AI product, according to Jerry Dischler, Google’s president of cloud applications. However, Dischler emphasizes that such integration only matters if companies make use of the entire system. “Most of the time when we talk to companies that are using AI, the biggest barrier is cost,” he says. “That’s why they’re so cautious about it. It’s like, ‘Wow, this is a ton of money, and let’s prove the value.’ OK, now you get AI [for free]. You have value.”
Google isn’t the only company to ditch its AI premium. In November 2024, Microsoft announced that Copilot Pro AI features, which previously cost $20 per month, would become part of the standard Microsoft 365 subscription. Other AI vendors are also betting that “free” access to AI will pay off in the long run. We’ll keep you updated on any further developments in the evolving AI office suite market.
Price Increases for Workspace Subscriptions
There is a fly in the ointment, however: at the same time as eliminating the AI fee, Google has increased the price of all Workspace subscriptions. On average, companies will have to pay about $2 more per month for each Workspace user. Larger companies may have different terms on their contracts, but the base price of the subscription has risen from $12 to $14 per month.
While this is a notable increase, Google appears to be compensating for the new AI freebies by adjusting its subscription pricing, notes NIX Solutions. These changes suggest that Google is determined to offer powerful AI functionality in its suite of office tools without a standalone AI fee, even if that means a slight bump in standard Workspace rates. By removing additional charges for AI features, Google aims to encourage businesses to integrate AI into their daily workflows without budgetary hesitation. In doing so, the company is positioning itself to stay competitive in a rapidly evolving market where advanced AI capabilities are increasingly viewed as essential for productivity and collaboration.