Google charges $30 per user for Duet AI in Workspace

Pricing launch and immediate impact

Google announced that large enterprises will pay $30 per month for each Duet AI user in Google Workspace. The charge sits on top of existing Workspace subscriptions. This move is part of Google’s effort to integrate generative AI into its core productivity suites, following the release of OpenAI’s ChatGPT chatbot late last year. The pricing is aggressive, as it matches Microsoft’s comparable 365 Copilot offering, which is set to be available in the first half of next year.

New Gemini search in Drive and expanded AI tools

Google integrated Gemini into Drive, allowing users to ask the model to locate emails stored in Gmail. The feature works by typing a natural-language query in Drive’s search bar. Gemini then rummages through linked Gmail accounts and returns matching messages. Duet AI also powers prompts in Gmail and general productivity apps. In Gmail, users type a brief request and receive generated text. For instance, users can ask Duet AI to draft an email based on a prompt, and the AI will generate the content.

Competitive context with Microsoft

Microsoft’s 365 Copilot offering is set to be available in the first half of next year, priced at $30 per user per month. Both firms are racing to embed generative AI into core productivity suites. The competition is heating up, with Google and Microsoft vying for dominance in the AI-powered productivity market. Other companies, such as BrowserOS, are working on open-source Chromium forks that run AI agents natively. Additionally, companies like SheetAI are bringing AI directly to Google Sheets, allowing users to generate content, analyze data, and automate complex tasks with simple functions.

Broader industry context

The AI-powered productivity market is rapidly growing, with several players competing for market share. Google and Microsoft are not the only ones investing in AI-powered productivity tools. The market size for AI-powered productivity tools is expected to increase significantly in the coming years, driven by the growing demand for automation and efficiency. According to a recent report, the global AI-powered productivity market is projected to reach $10 billion by 2025, growing at a CAGR of 25%.

History of AI-powered productivity tools

The concept of AI-powered productivity tools is not new. Several companies have been working on AI-powered tools for years, with some achieving significant success. For example, SheetAI has already gained ~139k installs and a 4.5/5 rating by 45 reviews. The company allows users to bring the power of artificial intelligence directly to their Google Sheets, generating content, analyzing data, and automating complex tasks with simple functions. Similarly, BrowserOS has developed an open-source Chromium fork that runs AI agents natively, providing a privacy-first alternative to ChatGPT.

Technical mechanics

The technical mechanics behind Google’s Duet AI and Microsoft’s 365 Copilot are complex, involving large language models and machine learning algorithms. However, the basic idea is to use AI to automate tasks and improve productivity. In Google’s case, Duet AI uses Gemini to locate emails stored in Gmail and power prompts in Gmail and general productivity apps. The AI model is trained on a large dataset of text and can generate human-like responses to user prompts.

Downstream implications

The downstream implications of Google’s Duet AI and Microsoft’s 365 Copilot are significant. The next quarterly earnings report will reveal how much of Google Cloud’s growth stems from AI add-ons. Feature parity battles in email search and document generation could tip large customers toward one platform over the other. As the competition continues to heat up, it will be interesting to see how these tools evolve and shape the future of productivity. The increasing adoption of AI-powered productivity tools is likely to have a significant impact on the way businesses operate, enabling them to automate routine tasks and focus on more strategic activities.

What to watch

The competition between Google and Microsoft is not the only thing to watch. The AI-powered productivity market is rapidly evolving, with new players entering the scene. The next big thing could be a company that successfully integrates AI into a specific industry or use case, creating a new paradigm for productivity. As the market continues to grow, we can expect to see more innovation and experimentation in the AI-powered productivity space.