Is this the beginning of the end of generative AI add on charges?
Google said Google Workspace will include Gemini for its business and enterprise plans and that it is dropping add-on charges for genAI functionality.
In a blog post, Google said a customer using the Workspace Business Standard plan with Gemini Business add-on previously paid $32 a month per user. Now that customer will pay $14 per user per month, or $2 more than they were for Workspace without Gemini. You can find the new pricing on Google Workspace.
With the launch of generative AI, many vendors went crazy with copilot add-on pricing and plenty of enterprises balked at the changes. A few companies like Workday, Zoom and Adobe refrained from that add-on pricing model. Those vendors either raised overall pricing with AI features included, added a credit model or launched new SKUs.
In many respects, Google may just be getting ahead of a change that's going to happen anyway. AI is a feature set not an upcharge--especially when everyone and their mother has genAI tools now. In fact, Zoom launched a catchy commercial that turns the add-ons back on the competition.
For new customers, the Workspace pricing kicks in tomorrow. If you had an annual or fixed plan, there will be credits. Monthly plans will drop the add-on charges at the end of January.
The upshot here is that Workspace customers will get features like help me write, take notes and NotebookLM Plus.
A few items to note:
- Google Workspace Business and Enterprise Starter, Standard and Plus plans are affected.
- Gemini Business, Gemini Enterprise, AI Meetings and Messaging and AI Security plans are going away.
- If you prepaid your Gemini for Workspace subscription you'll be credited Feb. 1. Credits will be prorated.
- Google won't renew Gemini for Workspace add-on orders.
- Existing Google Workspace pricing changes won't start until March 17, 2025.
