Google has followed Microsoft in increasing its price while adding AI to its product offering and this time there doesn’t seem a way to opt out of the price hike.
PC World’s Michael Crider had a curt take on Google’s price rise
Tech Insider: Google follows Microsoft in raising prices as it bundles AI
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Google Gemini. Photo Illustration / Thomas Fuller/ SOPA Images / LightRocket via Getty Images
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In a separate email, Google highlighted that Gemini Advanced – the pro version of Google’s generative AI that competes with ChatGPT – had been added to my Workspace plan.
Like millions of others around the world, I’ve been essentially army-volunteered to pay for Gemini Advanced, whether I wanted it with Workspace or not.
Google bills me in US currency. For January, the bill was US$13.80 (US$12.00 plus US$1.80 GST) but the invoice also includes a “for reference” NZD section, which worked out to $24.13 last month ($20.98 + $3.15 GST).
After the 17% rise to US$14 ex GST, I’ll be paying about $28 a month including GST, depending on how the kiwi is travelling.
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A more glass-half-full way to view things is that I’m now getting Gemini Advanced – which has been sold for US$20 a month – for just US$2.
I do want faster and unlimited use of Gemini for summarising documents and helping me write and more, so I’ll stump up. But with so many cloud services raising prices – often at levels that run bracingly ahead of inflation – it all adds up.
Any opt-out?
Last month, Microsoft announced a chunky increase to its 365 product (which, in rough terms, competes with Google Workspace). Customers – including me, on my family account – copped a 38% price rise as Microsoft’s Copilot AI was added to the suite (albeit with only the owner of a family account getting the full-blooded pro features).
However, there was an option to opt out, however – even if Consumer complained it was hidden. If you hit “cancel” on the subscription management page, you suddenly see the option to switch to a “classic” sub at your old 365 pricing, minus Copilot.
Google did not immediately respond to a query on whether Workspace had a similar step-down option, but hitting “cancel” did not generate one.
‘Foundational shift’
In a blog post, Google’s president of cloud applications Jerry Dischler said the US$20 stand-alone Gemini Advanced was being phased out because: “We believe that AI is not just another tool; it’s a foundational shift in how work gets done.”
“By removing the need to pay for an add-on to access our latest generative AI capabilities, we’re simplifying our plans and pricing to bring the added value of Google AI to all Workspace customers.”
A spokeswoman for Google Australia-New Zealand said, “Google AI will now be included in Workspace Business and Enterprise plans without monthly credit limits [a bugbear for the free versions of the various generative AIs] and without having to purchase any add-ons.”
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“Customers will get access to Gemini to help summarise, draft, and find information in emails, chats, and files; create professional documents, slides, spreadsheets, and videos from scratch; take meeting notes, and more.
“Gemini Advanced will help track complex projects including coding, research, and data analysis and lets you build Gems, your team of AI experts to help with repeatable or specialised tasks.”
A Workplace subscription also includes NotebookLM Plus to “upload sources to get instant insights and podcast-like audio overviews, then share customised notebooks with the team to accelerate their learning and on-boarding”.
Google did not break out a figure for sales of premium versions of Gemini with its most recent quarterly result.
Surveys indicate most businesses see huge potential for AI, but many are still in the early days of cautious rollouts with some struggling to find an immediate commercial return.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
