Google Adds AI to All Workspace Plans with Small Price Hike

Where Microsoft is raising Microsoft 365 prices and continuing to offer per-user per-month AI add-ons, Google is going in a slightly different direction. It is killing its Gemini AI-based Workspace add-ons, adding those features to the base Workspace plans, and raising prices across the board.

“We’ve decided to include the best of Google AI in Workspace Business and Enterprise plans, bringing the latest generative AI capabilities to our business customers without the need to purchase any add-ons,” Google president Jerry Dischler explains. “By removing the need to pay for an add-on to access our latest generative AI capabilities, we’re simplifying our plans and pricing to bring the added value of Google AI to all Workspace customers.”

Google is simplifying its pricing, yes. But it’s also raising prices for the majority of Workspace customers who never wanted to pay for AI in the first place. For example, the cost of a Google Workspace Business Standard plan combined with the Gemini Business add-on was previously $32 per month (when paid annually). And that under the new pricing scheme, the cost is $14 per month, a massive savings of $18 per month. But that Workspace plan was only $12 per user per month before, so the base price has gone up by 17 percent per user.

I suppose that’s reasonable, given the additional functionality. And to be fair, “very small businesses” are not subject to this price change “at this time,” Google says. And yes, business owners/IT can determine which of these features its users can access, while users can individually control so-called smart features across Google’s apps and services to some degree as well.

So what can Workspace customers expect? Starting today, Google is rolling out AI assistance in Gmail, Docs, Sheets, Meet, Vids and more, chat with Gemini Advanced, and NotebookLM Plus to all Workspace Business customers. In Gmail, those features include Help me write, Summarize emails, and Gemini in the side panel. For Docs, it’s Gemini in the side panel, (generative AI-based) Cover images, Help me write, Help me create, and Summarize documents. You can see the full lists of feature additions on the Google Workspace Updates blog.

Where Google diverges from Microsoft most obviously is that it will no longer even offer its added cost Gemini add-ons. So Gemini Business, Gemini Enterprise, AI Meetings & Messaging, and AI Security are all disappearing. By comparison, Microsoft continues to sell Microsoft 365 Copilot ($30 per user per month) for commercial Microsoft 365 subscribers and Copilot Pro ($20 per user per month) for consumer subscribers.

The price hikes for Workspace Business start tomorrow, January 16, and those currently paying for Gemini add-ons won’t be charged further after January 31.

Here are the new prices:

• Google Workspace Business Starter: $8.40 USD per user per month on flexible plan, $7 on annual plan
• Google Workspace Business Standard: $16.80 per user per month/$14
• Google Workspace Business Plus: $26.30 per user per month/$22

The Google Workspace Help site has more pricing information, including in various countries.