Microsoft and Google Unveil Updates to AI Tools with New Pricing and Features
Microsoft and Google have announced significant changes to the pricing and functionality of the artificial intelligence tools integrated into their productivity suites, aiming to encourage broader adoption among business users.

Microsoft and Google have announced significant changes to the pricing and functionality of the artificial intelligence tools integrated into their productivity suites, aiming to encourage broader adoption among business users.
Microsoft introduced a new version of its AI assistant, Microsoft 365 Copilot Chat, as part of its Microsoft 365 suite. The updated tool is an extension of the existing Copilot features and enables users to create custom AI agents that automate various business tasks. Previously, such capabilities were exclusive to the paid version of Copilot, which costs $30 per user per month. With this update, even users of the free tier can now access the ability to create and deploy AI agents.
These AI agents are built using Copilot Studio, a platform that allows users to design tools tailored to specific business needs through natural language prompts. For instance, marketing teams can create agents to analyze and extract insights from advertising data, while customer service teams can automate responses to frequently asked questions. Microsoft will bill these agents based on a "message" system, where user prompts to advanced AI models consume two messages each, while simpler AI models require just one message. Requests involving complex file analysis through the Microsoft Graph feature consume 30 messages per query.
Organizations can opt for a pay-as-you-go model at $0.01 per message or purchase prepaid packs offering 25,000 messages for $200 monthly. Richard Riley, general manager of Microsoft’s Power Platform, stated, "Answers are charged for every agent response, not for user prompts." He added that the platform allows developers to "define conversational topics, create branching logic flows, and apply generative AI to create responses based on knowledge sources."
On the same day, Google announced updates to Gemini, its AI toolkit within the Workspace productivity suite. Previously, full access to Gemini required a $20 monthly add-on fee per user. However, Google is now integrating the complete Gemini feature set directly into its Business and Enterprise subscription tiers, which will see a $2 price increase per user per month.
The enhanced Gemini package includes advanced features such as Gemini Advanced, a more powerful language model, and new tools like Gems, which enables users to create AI agents, and NotebookLM, a note-taking application that also serves as a research assistant. Customers of Business and Enterprise plans will also gain access to a sidebar feature, allowing them to interact with AI tools directly from Workspace applications like Drive.
In a blog post, Jerry Dischler, president of Google’s Cloud Applications, emphasized the company’s commitment to simplifying access to AI tools. “By removing the need to pay for an add-on to access our latest generative AI capabilities, we’re simplifying our plans and pricing to bring the added value of Google AI to all Workspace customers.”
These updates from Microsoft and Google underline their efforts to make AI tools more accessible and practical for business environments. As the demand for automation and AI-powered productivity tools grows, the competition between the two tech giants will likely intensify, shaping the future of workplace technology.