Google has elevated its Workspace platform by offering AI capabilities for free to subscribers of Workspace Business and Enterprise plans.
Previously, plan subscribers could purchase an add-on of AI features ranging from $20 to $30 per user per month.
The list of capabilities includes the Gemini assistant within Google Workspace apps; the Gemini standalone app; and the NotebookLM Plus research assistant. The free AI offering should help Google increase the uptake of the platform says GlobalData.
Gregg Willsky, principal analyst: Enterprise Technology & Services at GlobalData, comments: “Google has significantly enhanced the value proposition for Workspace. Despite a nominal increase of $2 per user per month in the cost of the plans, the overall price tag has been substantially lowered while providing an inventory of meaningful AI features.”
The announcement comes at a pivotal moment for AI. Rivals have been aligned in stuffing their team collaboration platforms full of AI features but have diverged when it comes to affixing a price tag to those features. Two paths have been taken – either charging an extra monthly per-user fee or including features as part of established subscriptions at no additional cost.
Willsky adds: “So, the question becomes, should AI features cost extra or not? There is no easy answer and not necessarily a right or wrong one. Given the great expense of delivering AI features, it may be unsustainable to offer them for free. On the other hand, it is possible that the allure of receiving AI capabilities at no cost has spurred adoption of those platforms to such a degree that the extra subscription revenue more than makes up for the added expense.”
Unfortunately, it’s not clear if hard data exists to support either scenario. What is clear is that AI is quickly being woven into the fabric of society. Soon, AI features will be regarded as ‘standard issue’ on team collaboration platforms and no longer worthy of commanding a premium. However, the costs incurred in providing them will remain.
Willsky concludes: “Google’s announcement mirrors the most likely scenario – additional fees for AI will evaporate only to be baked into a higher platform subscription price. As the saying goes, there is no such thing as a free lunch.”