Google Bundles Gemini AI into its Core Workspace Offering
Google Bundles Gemini AI into its Core Workspace Offering
This blog overviews Google’s recent announcement to bundle its Gemini AI features into Google Workspace and offers an Aragon Research analysis. Google announced on Wednesday that all AI features in Gmail, Docs, Sheets, and Meet are now available to Workspace customers with a modest price increase.
Why Did Google Bundle Gemini AI into Workspace?
This change simplifies access to Workspace AI tools, including email summaries, automated note-taking, chatting with the Gemini bot, and more. Previously, customers who wanted to use all of the AI features needed to pay an additional $20 per user per month for the Gemini for Workplace plan on top of the $12 for the Workspace Business Standard plan. Now, the standard plan is $14 per user per month.
When Does the New Pricing Go Live?
The new pricing takes effect for new customers immediately, and existing customers will see changes starting March 17, 2025. Small business customers are exempt from these pricing changes for now. Customers who previously purchased the Gemini for Workplace add-on will continue to have access to the features but will no longer be charged for the subscription after January 31st.
We would note that for firms that did purchase the $20 dollar per month Gemini subscription, they are going to get a much lower bill starting in March.
Analysis
Aragon Research believes this move by Google is a direct response to competitive pressures from Microsoft and other companies integrating AI capabilities into their standard offerings. In November, Microsoft bundled its Copilot Pro AI features with the standard Microsoft 365 subscription.
Matching Microsoft on Price
Google likely felt it necessary to match Microsoft’s offering to remain competitive. Bundling Gemini AI into Workspace also simplifies the product offering and makes it easier for customers to adopt AI features. The price increase is modest and likely will not deter most customers.
Note, Microsoft made a move late last year to add CoPilot to its Microsoft 365 Personal and Home subscriptions which added $3.00 to most of the prices. Microsoft also just launched a new Microsoft Copilot Chat which offers pay as you go Agent Services on top of its existing Copilot $30 a month subscription.
Slowing down OpenAI
Aragon also feels that by bundling this offering, it is an attempt to also thwart OpenAI which has been growing its subscription base at a rapid rate. While OpenAI is growing, much of its subscription base is individual users. While some say it is consumers, many of the users work at small, medium and large corporations.
What Should Enterprises Do?
Enterprises should evaluate the new Google Workspace offering and compare it to Microsoft 365 and other competing products. The increased availability of AI features is a significant development and could potentially improve productivity for many businesses. Enterprises should consider their needs and choose the product that best meets those needs.
Bottom Line
Google’s decision to bundle Gemini AI into Workspace is a significant development in the market for AI-powered productivity tools. Enterprises should evaluate the new offering and compare it to competing products. The increased availability of AI features is a positive development that could lead to increased productivity and innovation.
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