Illustrative study with synthetic respondents — not the company's data. Pricing teardown · Google Workspace · January 2025

Google put Gemini in every Workspace plan and raised prices by up to $4. Who paid more?

On January 16, 2025, Google stopped selling Gemini as a $20 add-on and built it into its Business plans instead. For a team without AI, that was a 17% to 22% price rise. For a team already paying for Gemini, the bill fell by more than half. This teardown looks at the decision behind it, and how you'd test it.

Public sources only, each citedPrices in USD per user per month, billed yearlyChecked October 3, 2026
In short
  • Business Starter went from $6 to $7, Standard from $12 to $14 and Plus from $18 to $22 per user (billed yearly), with Gemini included. The Gemini Business add-on, $20 per user, was no longer sold.2,3,4
  • For a Standard team without AI, that was a 17% rise. For one paying for Gemini, it fell from $32 to $14.1
  • Google said it wanted AI within reach of every business. The test: does a $2 rise for everyone earn back the $20 add-on that only some teams paid?
Situation

Gemini was an add-on, sold per user

Until January 2025, Google Workspace sold three Business plans, which differ in storage, meeting size and security.6 AI came separately: from February 2024, Gemini Business cost $20 per user per month with an annual commitment, and Gemini Enterprise $30.3

Google Workspace Business plans before January 16, 2025

PlanBilled yearlyBilled monthly
Business Starter$6$7.20
Business Standard$12$14.40
Business Plus$18$21.60
Gemini Business add-on$20—
Gemini Enterprise add-on$30—

Per user per month. Plan prices as reported by 9to5Google from Google's announcement4; add-on prices from Google, with an annual commitment.3

Task

Keep AI as a $20 add-on, or put it in every plan's price?

Google's announcement framed the change around cost: many businesses, it said, are unsure how to start with AI or struggle with the cost of adopting it, and its goal was AI at an affordable price for every business and employee.1 Google has not published how many Workspace customers bought the Gemini add-ons.

So the pricing decision was this: a $20 add-on bought by some teams, or a small rise paid by all of them. Which earns more, and who pays for it?

Before deciding: what you'd want to know

Four questions a pricing study can answer

  1. Which capabilities make a business suite worth paying for: the AI or the rest?MaxDiff →
  2. Should AI be sold as a $20 add-on, or included in every plan for a higher base price?Conjoint →
  3. What is the acceptable price range for Business Standard with AI included?Van Westendorp →
  4. At what price does Business Standard with AI bring in the most revenue?Gabor-Granger →

The order runs from the offer to the price: what buyers value, how to package it, the range they accept, then the exact price. Each question is asked separately of the two groups the change affects differently: teams already paying for an AI add-on, and teams that aren't. The study, run in Albi, is at the end.

Action

Every Business plan went up, with Gemini included

On January 15, 2025, Google announced that its AI was now included in Workspace Business and Enterprise plans, with new prices for new customers from January 16. It also stopped selling the Gemini Business and Gemini Enterprise add-ons.1,2 The changes:

PlanBeforeFrom January 16, 2025
Business Starter$6 · Gemini extra$7 · Gemini in Gmail
Business Standard$12 · Gemini extra$14 · Gemini included
Business Plus$18 · Gemini extra$22 · Gemini included
Gemini Business add-on$20No longer sold

Billed yearly. Prices as reported by 9to5Google; billed monthly, Standard went from $14.40 to $16.80.4 At launch Starter got the Gemini side panel in Gmail and the standard Gemini app and NotebookLM; Standard and Plus got the full set, including Gemini Advanced and NotebookLM Plus.5

Existing customers moved to the new prices from March 17, 2025, or at their next annual renewal, whichever came later. Teams on the add-on stopped being charged for it after January 31, 2025.1,2

Whether it was a rise depends on whether you already paid for AI

$0$5$10$15$20$25$30$35 Before · without AI$12 Before · with Gemini add-on$32 After · Gemini included$14
Business Standard, per user per month, billed yearly. "With Gemini add-on" is list Standard plus the list Gemini Business add-on ($12 + $20), the example Google itself gave.1 Our arithmetic from list prices3,4; it leaves out discounts and Enterprise plans.
Result

What is public about how it went

Google has not published churn, downgrade or Gemini usage figures for the change, and doesn't report Workspace revenue on its own. What is on the record is the change itself: Gemini is in every Business plan, and the add-ons are no longer sold.2

What isn't public: how many teams paid for Gemini before, and how many teams without AI moved down a plan or left. This teardown makes no claim about either.


The study

From the four questions to the decision

Illustrative study with synthetic respondents — not the company's data.

We ran the four questions above as one Albi survey. The respondents choose or pay for their company's email and office suite at US companies of 10 to 250 people: 150 whose company already pays for an AI add-on in that suite, and 150 whose company doesn't.

These results come from synthetic respondents: AI-modelled buyer profiles, not people. Use them to shape the question, then confirm with real respondents. Run in Albi on October 3, 2026, with 300 synthetic respondents generated by Gemini 3.5 Flash-Lite. Every chart below meets the minimum sample Albi sets for its method.

1

Which capabilities make a business suite worth paying for: the AI or the rest?

MaxDiff · all 300
10 = average Advanced security, retention22.0 AI summaries13.1 AI side panel in apps12.9 AI meeting notes12.8 AI research notebook10.5 AI drafting ("Help me write")10.4 2 TB storage per user7.8 General AI chat app5.8 Meeting recording3.3 Translated captions1.3
Preference score; the 10 capabilities sum to 100. Purple: AI features. Grey: the rest of the suite. Names shortened; the survey described each capability in full. Synthetic respondents, n = 300.

Result. The single most valued item was not AI: advanced security and data retention scored 22.0, more than twice the average. Five AI features followed close together, from summaries (13.1) to drafting (10.4), all above average. The seven AI features hold 67 of the 100 points, about their share of the list. Teams without AI ranked storage much higher; teams already paying for AI ranked the AI side panel near the top.

For the decision: AI adds value across the board, but no AI feature is valued as highly as security and data controls. That fits a small rise for everyone better than a large one.

2

Should AI be sold as a $20 add-on, or included in every plan for a higher base price?

Conjoint · all 300 · 5 prices × 3 AI levels × 3 plan levels

Old packaging vs new: who buys what, and what it earns

Before January 16, 2025

Gemini sold as an add-on

Starter$6
30 GB, 100-person meetings
Standard$12
2 TB, recording
Plus$18
5 TB, advanced security
Gemini Business+$20
add-on, any Business plan
Share of users
Share of revenue
UsersRevenue
No plan bought (vs. these options)1%—
Business Starter54%28%
Business Standard31%32%
Business Plus14%21%
Gemini add-on11% take it19%
Monthly revenue per 100 users$1,167
From January 16, 2025

Gemini included in every Business plan

Starter$7
Gemini in Gmail
Standard$14
Gemini included
Plus$22
Gemini included
Share of users
Share of revenue
UsersRevenue
No plan bought (vs. these options)2%—
Business Starter41%24%
Business Standard46%55%
Business Plus11%21%
Monthly revenue per 100 users$1,181 +1%
Simulated from the conjoint: each respondent picks the plan, with or without the add-on, that they value most at these prices, or none of them ("No plan bought" means none of these options, not a measured switch to a rival). Modelled separately for teams that already pay for an AI add-on and teams that don't, half of each. Before, Gemini buyers are counted under their plan (Starter 8%, Standard 3%, Plus 1% of all users), and the $20 add-on is shown as add-on revenue. Starter's Gemini in Gmail is modelled as "AI assistant in email only". Prices per user per month, billed yearly; revenue is per 100 users. The result depends on that mix: with 10% of teams already paying for AI, revenue changes −1% ($930 to $920); with 25%, 0%; with 50%, +1%; with 90%, +3%. Early read: synthetic respondents, n = 300.

Result. Price drove 80% of the choices, the AI level 12%, the plan 8%. Before the change, few took the $20 add-on: 11% of users, a fifth of teams already paying for AI and none of the others. It still carried 19% of revenue. After it, Business Standard goes from 31% to 46% of users, mostly teams already paying for AI (72% of them pick Standard). Teams without AI shift the other way, towards Starter (63% to 74%), and a few more buy nothing (1% to 4%). Revenue per 100 users is about flat: $1,167 to $1,181 a month, +1%.

For the decision: the bundle moves buyers up to Standard but barely changes revenue: the $2 to $4 rises paid by everyone roughly replace the $20 paid by the few. The result hardly depends on the mix: from −1% if a tenth of teams already pay for AI to +3% if nine in ten do.

3

What is the acceptable price range for Business Standard with AI included?

Van Westendorp · all 300, then each group
0%25%50%75%100% $5$10$15$20$25$30 Business Standard at $14 Acceptable range $12–$18 · optimal ≈ $15 Too cheap A bargain Getting expensive Too expensive $5$10$15$20$25$30Already pay for AI$15$20Don't pay for AI$11$15○ optimal price
Top: share of all 300 who call each price too cheap or a bargain (falling), and getting expensive or too expensive (rising). The acceptable range runs from where "too cheap" crosses "getting expensive" to where "a bargain" crosses "too expensive"; the optimal price is where "too cheap" crosses "too expensive". Below: the same range for each group, n = 150 each. Per user per month, billed yearly. Synthetic respondents.

Result. Across all 300, the acceptable range was $12 to $18, with the optimal price at about $15. So $14 sits inside it, just under the optimum. The groups differ: for teams already paying for AI the range is $15 to $20, so $14 is below it, cheaper than they expect. For teams without AI it is $11 to $15, with the optimal price at about $12: $14 is near the top, and 39% of them already called a price of $14 or less "getting expensive".

For the decision: $14 is cheap for AI payers and close to the ceiling for teams without AI. It splits the difference, and the average hides both.

4

At what price does Business Standard with AI bring in the most revenue?

Gabor-Granger · each group · prices $12, $14, $16, $18, $22
Share who would buy 0% 25% 50% 75% 100% Monthly revenue per 100 users $0 $500 $1,000 $1,500 $12$14$16$18$22 Already pay for AI Don't pay for AI All 300 ◯ peak
Top: share who would buy Business Standard with AI included at each price (demand curve). Bottom: price × that share, as monthly revenue per 100 users; the circle marks each group's peak. Per user per month, billed yearly. Synthetic respondents, n = 150 per group.

Result. Across all 300, revenue per 100 users peaks at $12 ($1,176 a month, with 98% buying), ahead of $14 ($1,064, 76% buying). The two groups pull in different directions. Teams already paying for AI peak at $14 ($1,279), and their revenue stays almost as high up to $18. Teams without AI peak at $12; at $14 only 61% would buy, and their revenue is 26% lower.

For the decision: asked about Standard alone, $14 is the best price for AI payers and costs revenue among teams without AI, for whom $12 earns more. It is a compromise between the two groups.

What the four add up to

Bundling Gemini moves buyers up to Standard, at about the same revenue. Most of the move up comes from teams already paying for AI.

  • Value: the AI features add value, but security and data controls are still the single most valued item (question 1). Bundling takes Standard from 31% to 46% of users at about the same revenue (+1% in the simulation, with half of teams already paying for AI), and that changes little with the mix (question 2).
  • Price: $14 is inside the overall acceptable range and just under its optimum, and it is where AI payers' revenue peaks (questions 3 and 4).
  • Risk: the rise falls on teams without AI. For them $14 is near the top of their range, only 61% would buy Standard at $14, and their revenue peaks at the old $12 (questions 3 and 4). In the simulation they drift towards Starter (question 2).

What this study can't tell you: what teams without AI would really do, and how many teams paid for Gemini before. "No plan bought" is not a measured move to a rival, and Starter's Gmail-only AI is modelled as one level. That is the next thing to test, with real respondents. Google hasn't published what happened (see Result).

The full report · the PDF Albi produced for this survey: every question's chart, synthetic results labelled on every page PDF · 8 pages · download

How each method works, and how many respondents you need: Van Westendorp · Gabor-Granger · MaxDiff · Conjoint · Sample size

Find out what your buyers will pay, before you change the price

Run this survey yourself Start from this Google Workspace survey and change it for your plans. $199 a survey, or $499 with conjoint, plus respondents: real people via Prolific, or synthetic. Use this survey →
Have Albi run it We design, field and analyse a study on your own pricing question. Fixed price, invoiced. Talk to us about a study →

Google Workspace and Gemini are trademarks of Google LLC. Albi has no affiliation with Google, and this teardown is not endorsed by it.

Sources

  1. Google Workspace blog, "Google Workspace enables the future of AI-powered work for every business", January 15, 2025: Gemini included in Business and Enterprise plans; the $32-to-$14 Business Standard example; existing customers from March 17, 2025 or renewal. workspace.google.com
  2. Google Workspace Updates, "The best of Google AI, now included in Workspace Business and Enterprise plans", January 2025: new prices for new customers from January 16, 2025; the Gemini Business and Gemini Enterprise add-ons no longer offered; add-on charges end after January 31, 2025. workspaceupdates.googleblog.com
  3. Google, "New ways Google Workspace customers can use Gemini", February 21, 2024: Gemini Business $20 per user per month with an annual commitment, Gemini Enterprise $30. blog.google
  4. 9to5Google, "Google Workspace details 2025 Gemini price increase", January 15, 2025: current and new prices, annual and flexible plans. 9to5google.com
  5. 9to5Google, "Google Workspace business users getting full Gemini experience, price increasing", January 15, 2025: AI features by plan, Business Starter included. 9to5google.com
  6. Google Workspace Admin Help, "Compare Business editions": storage and meeting size per plan, used in the survey's plan descriptions. knowledge.workspace.google.com

We'd rather do this on your pricing than Google Workspace's.

Same method, your own data behind it, and a proposal you approve or don't.