Google will no longer chargeWorkspacecustomers an additional fee for Gemini, expanding access to generative AI(genAI)features in apps such as Gmail, Docs,and Sheets. At the same time,the companyis increasingthe price of Workspace subscriptions by a small amount.Google is disrupting a market while some application vendors are still trying to monetize generative AI, said Wayne Kurtzman, research vice presidentfor collaboration andcommunities at IDC.Itsan unusually bold first move by Google, one that should result in paid user growth of their Workspace platform.We are moving to an economy where we will experience AI everywhere, so it makes sense that we see AI included in office and collaboration applications, said Kurtzman.Googlelaunched its Gemini AI assistant(formerly Duet AI for Google Workspace) in August 2023. There were two main add-ons:Gemini Businesspriced at $20 per userpermonth, and Gemini Enterprise, which cost $30 per userpermonth.Each representeda significant outlay for Workspace customers on top of their core subscriptions;Google later introducedmore affordable add-on optionsthat provided a limited set ofgenAI tools: AI Meetings and Messages and AI Security, both costing $10 per user a month.All ofthosesubscription costs willendas of March 17, Googlesaidin ablog post Wednesday.Instead, Gemini features will be included in regular paid Workspace plans from the Business Standard plan upwards.Thatwill allowaccess to Gemini in the side panel of several Workspace apps, as well as automated note taking in Meet video calls, image generation in Docs and Slides, and access to theNotebookLM Plus app.(Google has a detailed list of the AI features available and coming soon to each payment planatitsadmin help site here.)At the same time, the price of payment plans will increase. Business Standard willrisefrom $12 to $14 per user each month when paid on an annual basis;Business Plus customers will see a more substantial increasefrom $18 to $22 per user a month. The Business Starter plan, which will provide access to limited Gemini capabilities, willgofrom $6 to $7 per user a month.Google doesnt provide details on the Workspace Enterprise tier publically.The change to pricing will begintoday, Google said.The movecouldbeseenas the commodification ofgenAI;more than two yearsafterChatGPT 3.5 launched, AI assistant tools have become common and vendors haveshifted their attention to moreadvanced AI agents. OrGooglemay have moved onfromits attempt to convince customers to pay a premium for Gemini over and above the base subscription costs.While theres an element of truth to both, Googles sales channel and customers may well celebrate, J.P. Gownder, vice president and principal analyst on Forresters Future of Work team,saidin ablog post abouttheannouncement.One implication of the decision is to makegenAItoolsavailable to all employeeswithaccess to Workspace;due to the high per-user cost, many customersmight have beenselective about handing out licenses,dividing knowledge workers intoAI haves and have-nots.This pricing change effectively removes a companys need to determine who will get an AI productivity boost, and who will not, said Kurtzman. This should expand the number of paid seats of Google Workspace,as the value prop of usability and AI are clear.It could also convince more companies to switch to the paid version of Workspace.Many companies still use the free version of Google Workspace toaccess collaborative features that their current applications do not support, said Kurtzman. The inclusion of AI and a price point much lower than manycompetitors should result in additional paid users to Google Workspace.Googles move will clearly put pressure on Microsoftwhich charges $30 per user a month for its M365 Copilot add-onto follow suit, as well as otherproductivity softwarevendors that charge an extra fee for access togenAI capabilities.(Zoom is a notable exception, having included its AI Companion in its apps at no extra cost since launch.)As the cost of running large language models(LLMs) drops, this isanatural direction of travel: Gartneranalystshave said they expectgenAI features to be included at no extra cost in office software subscriptions by 2028, according to arecent report(subscription required), as vendors seek broader adoption of their tools.Price cutswill likely spur wider adoption. Microsoft has found it difficult to convince large numbers of customers to adoptitsM365 Copilot widely across their organizations, with subscription costsone of the barriers. Microsoft has already bundled Copilot into consumer M365subscriptions in some countriesandwilllikely do the same for business customerseventually.How long can Microsoft hold the line and for how long on $30/user/month? Were betting the pricing strategy evolves, said Gownder.