
Google announced today that it is making its AI tools in Gmail, Docs, Sheets, and Meet free for Workspace users, eliminating the previous $20 monthly add-on fee. However, there will be a $2 per user per month increase in Workspace subscription prices.
Key Points:
- AI features in Gmail, Docs, Sheets, Meet, Chat, Vids, and more powered by Google’s Gemini, are now free for Workspace users.
- Workspace subscription prices will increase by $2 per user per month.
- Gemini Advanced, and NotebookLM Plus are now included for Workspace Business and Enterprise users
The pricing restructure arrives just as Microsoft has begun offering free access to its Copilot Chat for commercial customers, suggesting a broader industry move toward making enterprise AI tools more accessible. Jerry Dischler, Google's president of cloud applications, explained the company's rationale: "Most of the time, when we talk to companies who are using AI, their big impediment is cost reasons. That's why they go in so gingerly. Like, 'wow, this is a lot of money, and let's prove the value.' All right, now you get the AI. You have the value."
For businesses using Google's platform, this means access to features like email summaries in Gmail, automated note-taking in Meet, and the Gemini chatbot will no longer require separate subscriptions. A company previously paying $32 per user monthly for Workspace Business Standard with AI add-ons will now pay $14 – a substantial reduction that could accelerate AI adoption across organizations.

The change appears carefully timed. With Microsoft recently announcing free access to Copilot Chat and usage-based pricing for AI agents, the enterprise AI market is showing signs of shifting away from premium-tier pricing models. This move by Google suggests that major tech companies are prioritizing widespread adoption over immediate revenue from AI features.
Security remains a central focus in this transition. Google has emphasized that it won't use customer data, prompts, or generated responses to train Gemini models outside of a company's domain without permission. The company has also obtained various security certifications, including SOC 1/2/3 and ISO certifications, positioning its AI tools as enterprise-ready.
The pricing changes take effect immediately for new customers, while existing subscribers will see updates beginning March 17, 2025, or at their next renewal date for annual plans. Small business customers are temporarily exempt from these pricing changes but will still gain access to the new AI capabilities.
This strategic shift reflects a maturing AI market where capabilities once viewed as premium features are becoming standard offerings. For businesses weighing their options, Google’s updated pricing model delivers a broader range of tools, but the marginal price hike may influence smaller companies to reconsider their budgets. Whether this strategy captures new users or alienates existing ones will likely depend on how effectively the AI tools drive productivity gains across industries.