Google offers AI tools free in the workspace but raises subscription costs by $2 per user

Google has unleashed a dramatic shift in its Workspace ecosystem by making its powerful AI features, previously locked behind a $20 monthly paywall, entirely free. The announcement marks a turning point in the battle for dominance in AI-powered productivity tools, but there’s a catch-all Workspace plans will now cost an extra $2 per user each month.

This change allows users of Gmail, Docs, Sheets, and other Workspace apps to access advanced AI tools, including email summarisation, spreadsheet design generation, and even Gemini, Google’s flagship AI assistant. Gemini can not only perform typical chatbot tasks but also delve deep into your files, assisting with research and offering tailored solutions.

Jerry Dischler, Google’s president of cloud applications, stated, “Cost has been a significant barrier to AI adoption. By making these features accessible, we hope to empower businesses while proving the immense value of these tools.” However, critics argue that the price hike, albeit modest, could alienate smaller companies already grappling with rising operational expenses.

This move is part of Google’s strategy to outpace rivals like Microsoft, which recently included its Copilot Pro AI features in standard Microsoft 365 subscriptions for select customers. With the corporate AI arms race intensifying, both companies are eager to integrate AI deeply into everyday workflows, reshaping how individuals and organisations operate.

The decision to increase prices comes as a calculated risk for Google. While the free inclusion of AI tools may lure new customers and retain existing ones, the additional charges could trigger frustration among budget-conscious businesses. It’s a delicate balance between innovation and affordability – one Google is betting will pay off in the long term.

By lowering the entry barrier to its AI suite, Google hopes to foster a broader embrace of its technology. The company’s ambitious goal is clear: to dominate the AI office software landscape while cementing its reputation as a leader in enterprise solutions.

For users, this means greater productivity potential without the need for costly upgrades. AI-powered summaries, meeting notes, and dynamic designs are just the beginning of a new era in office tools. Yet, the true cost of this innovation – financial and otherwise – remains to be seen.