Google Workspace Gemini AI Price Changes: 5 Big Things To Know

From new Workspace price increase figures to certain customers who won’t see their Workspace bill increase just yet, here are five big things to know about Google’s new Gemini Workspace changes.

Google Cloud kicked off 2025 with a bang by integrating its Gemini AI technology inside Workspace that will now be free of charge for clients with Business and Enterprise subscription plans. However, Google also increased the total price tag per user for nearly every Workspace customer.

Google Workspace customers who signed up for a flexible or annual Workspace Business plan will see their monthly bill increase by 17 percent to 22 percent. It is key to know that in February 2023, Google also increased the price of its Workspace Business flexible plans by 20 percent.

This means that customers with a flexible Workspace Business subscription have seen their bill jump, in some cases, nearly 50 percent in just two years.

For example, customers with a Workspace Business Plus flexible subscription were paying $18 in early 2023. Now, a Workspace Business Plus flexible subscription will cost $26.40—representing a 47 percent price increase compared to $18 in 2023.

[Related: Google Workspace Partners Expect Big Margin Hit, Blindsided By Gemini AI Price Action]

The new Workspace Business and Enterprise pricing takes effect for new customers immediately, with existing customers seeing the price changes starting March 17, 2025.

Google Cloud Partners Mixed Reactions

Google Cloud channel partners—who typically are the ones implementing and managing Workspace and Gemini for Google customers—have mixed reactions about the news. Some partners see the move as a Google AI services revenue driver, while others expect their company’s Workspace profitability will take a hit.

“This is generally bad for partners,” said a CEO of one prominent Google Workspace solution provider, who asked not to be identified. “When Google cut our Workspace renewal margins by 40 percent [last April], part of the story was the revenue and margin opportunities for partners with Gemini [would balance those margin losses]. We will now lose 80 percent to 90 percent of the margin dollars on Gemini with this change.”

However, other partners like Google Premier Partner Promevo, see the move as benefiting all Workspace customers as Gemini’s massive potential is now being unlocked for all users.

“This is great for us because it means more AI deployed into more companies and getting customers to see the tangible benefit of productivity gains they can get from it,” said Promevo Chief Technology Officer John Pettit. “We saw a lot of people see real gains after six weeks of using AI technology, but the cost factor was one of the elements that was limiting their initial deployment of users.”

Workspace is Google’s collaboration and productivity suite that consists of Gmail, Docs, Sheets, Meet, Chat, Vids and more. Google said over 100,000 customers over the past year have used Gemini for Workspace.

CRN breaks down the five biggest price increase data points and most important things to know about the Google Workspace suite with Gemini now included.

New Google Workspace Flexible Pricing Plans

Prices for flexible Workspace Business plans increased by 17 percent to 22 percent.

Business Starter rose from previously $7.20 per user to now $8.40 per user—representing a 17 percent price increase.

Business Standard increased from $14.40 per user to now $ 16.80 per user—representing a 17 percent price increase.

Business Plus rose from $21.60 per user to now $26.40 per user— representing a 22 percent price increase.

For customers who own a flexible Workspace Business plan, exiting subscription pricing will be updated starting March 17, 2025.

In early 2023, customers with a Workspace Business Plus subscription were paying $18. With two pricing increases over the past two years, customers with a Workspace Business Plus subscription are now paying $26.40, representing a 47 precent price increase.

Google Workspace Annual Or Fixed Term Plans

In 2023, Google introduced an annual plan option for all Google Workspace editions. At the time, Google said annual plans were a way for organizations ready to commit to a longer-term agreement to lock in the lowest price per-user.

The price for a Workspace Business Starter annual plan has increased from $6 per user to now $7 per user—representing a 17 percent increase.

The price for a Workspace Business Standard annual plan rose from $12 per user to $14 per user—representing a 17 percent increase.

The Workspace Business Plus price increased from $18 per user to $22 per user—representing a 22 percent increase.

“For existing customers, monthly subscription pricing will be updated starting March 17, 2025, or at renewal date with an Annual/Fixed-term plan, whichever is later,” said Jerry Dischler, president of cloud applications for Google, in a recent blog.

Customers will not be charged for the additional Gemini AI functionality until their renewal.

Workspace Gemini $20 And $30 Add-On Cost Eliminated

Prior to Google integrating Gemini across Workspace for free, companies were paying either $20 or $30 to add Gemini into their Workspace environment.

The Gemini Business add-on plan used to cost an extra $20 per user per month.

The Gemini Enterprise add-on plan used to cost an extra $30 per user per month.

These Gemini add-on fees were on top of a business’s Workspace price tag. For example, a customer would have paid $20 for Gemini Business on top of their Workspace Business Standard annual plan that previously cost $12. So the final price would have been $32 per user per month for Gemini Business.

Since Gemini will now become part of Workspace, both the $20 and $30 add-on options will be eliminated.

Customers who previously purchased the Gemini for Workspace add-on will continue to have access to the features but will no longer be charged for the subscription after January 31.

Some Workspace Customers Are Not Affected

Google said that the Workspace price changes are not applicable for small businesses with 10 or fewer user licenses.

“Very small business customers are not subject to pricing changes at this time,” said Google’s Dischler.

Pricing for existing Google Workspace subscriptions with 10 or fewer user licenses will change at a later date, Google said. Google hasn’t specified when these businesses might be subject to the new prices.

Additionally, the following subscription types are not impacted by the price changes at this time:

The New Gemini AI Capabilities Inside Google Workspace

Gemini’s AI capabilities are rolling out gradually between January and March into Workspace.

Google said the following AI capabilities are now available to Google Workspace Business customers and will become available to Enterprise subscribers soon: Gemini AI assistance technologies inside Gmail, Docs, Sheets, Meet, Chat, Vids, and more.

“Gemini streamlines your communications by helping you summarize, draft, and find information in your emails, chats, and files. It can be a thought partner and source of inspiration, helping you create professional documents, slides, spreadsheets, and videos from scratch. Gemini can even improve your meetings by taking notes, enhancing your audio and video, and catching you up on the conversation if you join late,” said Google’s Dischler.

Additionally, there are new capabilities for users to chat with Gemini Advanced. “Kickstart learning, brainstorming, and planning with the Gemini app on your laptop or mobile device. Gemini Advanced can help you tackle complex projects including coding, research, and data analysis and lets you build Gems, your team of AI experts to help with repeatable or specialized tasks,” Dischler said.

Lastly, Google is unlocking the power of NotebookLM Plus for Workspace Business and Enterprise customers. “We’re bringing the revolutionary AI research assistant to every employee, to help them make sense of complex topics. Upload sources to get instant insights and Audio Overviews, then share customized notebooks with the team to accelerate their learning and onboarding,” said Dischler.