Google Sets Price for Duet AI Integration in Google Workspace
Google has unveiled the pricing structure for its artificial intelligence enhancements, collectively known as Duet AI, which will be integrated into its productivity apps, including Gmail, within Google Workspace. Large businesses will be charged $30 per month per user to access these enhancements, putting it on par with Microsoft’s 365 Copilot offerings set to launch in the first half of the upcoming year. Both companies are actively integrating generative AI technology into their core products to compete with the success of OpenAI's ChatGPT chatbot.
Subscription Fees and Free Trials
The $30 monthly fee for Duet AI will be in addition to the existing charges for Google Workspace subscriptions. To allow businesses to experience the enhancements firsthand, Google is offering free trials before requiring a subscription commitment. While the pricing for smaller organizations and individual users has not been confirmed, Aparna Pappu, Vice President and General Manager of Google Workspace, mentioned that the list price was determined by considering customers' perceived value.
Google's Approach and Revenue Dynamics
In May, Google began accepting preorders for Duet AI, pricing it at $30 per user for Google Workspace. However, this pricing was only made public recently. Interestingly, Microsoft also announced an identical pricing model in July for its 365 Copilot offerings. Google's primary revenue streams come from internet search and online advertising, with Google Workspace falling under the broader Google Cloud category. During the second quarter, Google Cloud and cloud infrastructure generated $8 billion in revenue, while Microsoft's Office products and cloud services yielded $13.5 billion.
Growing Adoption and AI Capabilities
Google has experienced significant growth in its Workspace user base, expanding from 6 million paying customers in 2020 to 10 million presently. Over a million individuals have participated in the trusted tester program for the new AI capabilities, and more than 1,000 customers are currently using the tools in a trial period. Duet AI enhances productivity within various Google apps, allowing users to generate text and images, manage meeting notes, and assist with project management.
Microsoft's Parallel Initiatives
Meanwhile, Microsoft has been actively promoting similar capabilities through 365 Copilot and introduced a paid early access program for 600 clients in May. Duet AI for Google Workspace is expected to be available for consumers early next year. With its extensive user base of over 3 billion worldwide, Google Workspace is continuing to expand its AI-driven functionalities to elevate productivity and streamline work processes.
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