Google puts AI into Workspaces
Microsoft bets Office users will pay 30% more for AI
Copilot, whether you want it or not
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Google puts AI into Workspaces
Google has introduced new AI features to its standard Workspace accounts for businesses, while also implementing a slight increase in the baseline prices of its Workspace plans. Among the enhancements are access to Gemini Advanced, the NotebookLM research assistant, email and document summaries in Gmail and Docs, adaptive audio, and additional transcription languages for Google Meet. Users will also benefit from the "help me write" feature and Gemini integration in the side panel across various applications.
The tech giant has indicated plans to expand its AI offerings, stating it will "roll out even more AI features previously available in Gemini add-ons only." This move comes on the heels of Microsoft's recent announcement that its Copilot Pro AI features would be included in the base cost of Microsoft 365 Personal and Family subscriptions. As is typical with enterprise software, the details of the new pricing structure are complex, with different terms for various user categories.
Under the new pricing scheme, customers will see immediate changes, while existing Workspace accounts will transition on March 17. Those who have been paying $20 per month for the Gemini subscription will no longer incur that charge starting February 1, although they will maintain access to the service. Notably, these updates do not yet apply to small-business customers, but Google has indicated that this is a temporary situation. Additionally, the changes are not currently in effect for education and nonprofit accounts....
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Microsoft bets Office users will pay 30% more for AI
Microsoft Corp. is increasing the price of its consumer Office app package, banking on the belief that subscribers will be willing to pay more for access to new AI features. The Microsoft 365 family subscription, which allows up to six users to access applications like Word and Excel, will now cost $130 per year, marking a 30% increase. Meanwhile, the individual subscription will see a 43% hike, rising to $100. These price changes take effect immediately for new subscribers and will apply to existing subscribers upon renewal.
This price adjustment aims to generate additional revenue from the company’s current customer base and to help offset the substantial investments—amounting to tens of billions of dollars. A company spokesperson noted that this is the first price increase for the software bundle, originally launched as Office 365 and now known as Microsoft 365, in 12 years. "These changes bring the transformative power of AI to the personal productivity tools that millions of people use every day," said Bryan Rognier, a vice president at Microsoft, in a blog post.
Microsoft has already tested these price increases in select markets, including Australia and Singapore, over the past few months. The broader rollout announced on Thursday will extend the new pricing and AI features to most of Microsoft’s 84 million consumer subscribers, according to Rognier….
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Copilot, whether you want it or not
In a move to drive AI adoption and boost revenue, Microsoft has quietly added(tested) its AI assistant Copilot to its Office 365 software subscription service in several markets, including Australia and parts of Southeast Asia. However, this surprise integration has not been well-received by some users.
One Australian customer reported that the Copilot integration and the accompanying price increase for the 365 service, which also includes Excel and Powerpoint, were enough to make him switch to Google Docs. This backlash highlights the challenges Microsoft faces in driving consumer adoption of its AI technologies, particularly when compared to the runaway success of OpenAI's ChatGPT.
According to data from Sensor Tower, the Copilot app has been downloaded 37 million times since its launch in May 2023, a fraction of the 433 million downloads for ChatGPT during the same period. This disparity underscores the uphill battle Microsoft faces in capturing user mindshare in the generative AI space.
While Microsoft has found success in the enterprise market, leveraging its Azure cloud platform. The tech giant is now seeking to translate that momentum into user-facing AI products. Jared Spataro, who oversees Microsoft's workplace AI efforts, has reportedly told employees that ChatGPT Enterprise is Copilot's primary competitor.
Inside Microsoft, Copilot is viewed as the first step in a broader AI strategy that will eventually focus on more advanced "agents" – automated tools capable of handling complex tasks such as customer service interactions and travel booking. However, the company's ability to sell these more sophisticated AI agents may hinge on its success in winning over users with the Copilot experience….