Google is making AI features free in Gmail and Docs — but increasing its Workspace prices

Google has expanded access to AI features across its Workspace suite while simultaneously increasing base subscription costs.

The core change: Google is now providing its AI features in Gmail, Docs, Sheets, Meet, and other Workspace applications at no additional cost, eliminating the previous $20 per user monthly fee for the Gemini Business plan.

• The base subscription price for Workspace is increasing from $12 to approximately $14 per user per month
• Users gain access to the Gemini chatbot, which offers advanced search and information retrieval capabilities across applications
• The change reflects Google’s strategy to compete with Microsoft, OpenAI, and others in developing AI-enhanced productivity tools

Key features now included: Google’s Workspace AI toolkit offers a comprehensive suite of productivity-enhancing capabilities across its platform.

• Email summaries in Gmail provide automated content digestion
• Generated designs for spreadsheets and videos streamline content creation
• Automated meeting note-taking functionality improves collaboration
• NotebookLM research assistant helps with information gathering and analysis
• Writing assistance tools are available across multiple applications

Strategic context: The move aligns with broader industry trends and competitive dynamics in the AI-enabled productivity space.

• Microsoft recently made similar changes by including Copilot Pro AI features in standard Microsoft 365 Personal and Family subscriptions
• Jerry Dischler, Google’s president of cloud applications, emphasizes the company’s vertical integration in AI products
• Cost has been identified as a major barrier to AI adoption for many companies
• The strategy aims to accelerate user adoption and feature development across the platform

Market implications: Google’s decision to democratize access to AI features while adjusting pricing structures signals a pivotal moment in the evolution of productivity software.

• The price adjustment suggests confidence in the value proposition of AI-enhanced tools
• Companies must weigh the modest price increase against the potential productivity benefits
• The move may pressure other productivity software providers to reconsider their AI pricing strategies
• Rapid feature deployment is expected as development roadmaps adapt to wider AI integration

Looking forward: The integration of AI features into standard Workspace subscriptions marks a strategic shift toward making advanced productivity tools more accessible, though questions remain about long-term pricing sustainability and the impact on user adoption patterns.