Google has significantly enhanced the value proposition of its Workspace platform by now including AI capabilities for free on 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. 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.
Included on the list are the Gemini assistant within Google Workspace apps; the Gemini standalone app; and the NotebookLM Plus research assistant.
Google has simplified the structure of the plans and pricing
In addition to enhancing its value proposition, by eliminating the need to purchase the AI add-on Google has simplified the structure of the plans and pricing. A more streamlined purchase experience is certainly beneficial to customers.
The announcement comes at a pivot point 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. So, the question becomes should AI features cost extra or not? There is no easy answer and not necessarily a right or wrong one.
The expense of AI
Delivering AI features involves great expense such as R&D and the infrastructure required to support power and other needs. Given the expense it may not be sustainable to offer AI features for free, and vendors may need to pivot and charge extra.
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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. Fee-based vendors may find they can afford to offer AI ‘freebies’.
AI features as standard issue
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. Google’s announcement follows 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.