VendorIQ: Google’s Workspace AI is the Shape of Things to Come, Even for Microsoft 365 Customers!

Why It’s Important

Get Ready… You Won’t Have a Choice About Generative AI

Google’s universal integration of Gemini AI capabilities into their Google Workspace platform signals a significant shift in enterprise AI strategy. Rather than waiting for organisations to adopt AI tools voluntarily, major vendors are now forcing adoption through integration into core productivity suites. This approach addresses the challenge of demonstrating ROI for generative AI, which has led to slower-than-expected adoption rates.

Microsoft is pursuing a similar strategy with Copilot, though with more significant price increases, indicating an industry-wide push to accelerate AI adoption. Since November 2024, Microsoft has been conducting a quiet ‘trial’ of the forced inclusion of Copilot for business accounts in Australia and other Southeast Asian countries, with notable price increases to cover the new features. On the 16th of January 2025, a day after Google’s announcement, Microsoft formally announced that it intends to expand the inclusion of Copilot in personal and family account plans. 

The forced implementation strategy by vendors reflects their frustration with the slower-than-expected uptake of workplace generative AI tools. Both Google and Microsoft have struggled to meet their adoption targets, leading them to bundle AI capabilities into core productivity suites. This approach removes the choice from organisations, making AI adoption mandatory rather than optional. This strategy creates immediate challenges for IT departments and business leaders who must quickly develop training programs and change management strategies. 

Coming, Ready or Not

It is worth noting that Gemini and Copilot are both evolving rapidly. During discussions with Google’s product team leads, IBRS confirmed that several of the ‘missing features’ in the rapidly deploying Gemini for Workspaces are still being refined for enterprise use. The most notable example is that Deep Research (an agentic tool for research and advanced reasoning) is available in Gemini Advanced personal plans but is not yet included in the Gemini Advanced for Workspace plans. Deep Research is being withheld from the business accounts while Google refines how governance will be applied to the service.  

Google has confirmed that all Gemini Advanced features will be available in all ‘for business’ Workspace plans over time. However, some AI features (not part of Gemini Advanced) will only be included in Enterprise Workspace plans. One example of this is AI auto-classification for Drive files.

The challenge for customers is that Gemini features being demonstrated to staff via YouTube and other social media, may not be immediately available. This can lead to confusion and frustration among ‘AI champions’ inside businesses. A communication plan will be needed to set expectations, and an ongoing program will be needed to monitor and put change training in place as new features emerge within the Gemini Advanced for Workspace plans.

In addition, IBRS expects to see agentic AI services expand rapidly through the Gemini (and Copilot) stacks over the next year. In Gemini, new agents will likely emerge to support everyday ‘personal assistant’ type activities via Gemini Gems.  IBRS also expects to refine how Gemini and Gems interact with Google Drive folders, allowing for personal RAG ‘retrieval augmented generational’ agentic applications.

Data Suggests this Could be a Good Thing

While potentially disruptive, the automatic enablement of AI features may accelerate digital transformation. A soon-to-be-released IBRS study of more than 2000 Australian workers shows that 53.2% of staff have already used AI tools like Copilot, ChatGPT and Gemini. While 58.1% of employees believe AI will have a neutral impact on their jobs, 28.9% anticipate positive impacts, suggesting a foundation of cautious optimism. The key drivers for AI acceptance include its ability to automate repetitive tasks (30.4% of respondents), improve customer support (20.7%), and assist with decision-making (19.2%). However, organisations must address significant concerns, as 32.6% of staff fear job displacement and becoming overly dependent on technology. 

Data from the IBRS survey suggests that exposure to AI in the workplace significantly improves perceptions and acceptance. Early and frequent interaction with AI tools enhances user comfort and integration into daily workflows, indicating that organisations should focus on providing hands-on experience rather than theoretical training. 

Time to Focus on Change Management and AI Digital Literacy

Organisations must now focus on maximising returns through effective implementation rather than negotiating costs or avoiding AI services altogether. 

Success is linked to clear communication about AI benefits, adequate training, and involving employees in the implementation process to address concerns and enhance user experience. The combination of proactive change management and gradual exposure to AI tools can foster a more positive reception among staff, ultimately leading to increased usage and acceptance of AI technologies in the workplace. 

Organisations that can effectively manage this transition while addressing employee concerns about job security and technology dependence will be better positioned to realise the benefits of AI integration.

Who’s Impacted 

• CIO: Develop a comprehensive AI adoption strategy and change management program to effectively utilise new AI capabilities across the organisation. 
• IT Directors: Review security implications of AI integration and implement appropriate controls while managing the automatic enablement of features. 
• CFO: Plan for increased subscription costs and evaluate potential productivity gains against the training and change management investment. 
• HR Leaders: Develop AI training programs and address potential employee concerns about AI integration in daily work. 
• Workspace Administrators: Carefully manage the rollout of AI features and ensure appropriate access controls are in place. 
• Team Leaders: Support staff through the transition and identify opportunities to leverage AI for improved productivity. 

What’s Next

• Develop a comprehensive AI training program immediately, focusing on practical applications within your organisation’s context rather than theoretical AI knowledge. 
• Review and update data governance policies to account for AI integration, ensuring compliance with regulatory requirements while maximising AI utility. 
• Establish metrics to measure AI adoption and impact, create baseline measurements to demonstrate value and ROI and create a continual improvement/ideation feedback mechanism to capture and reinforce practical uses of AI.
• Create a change management strategy that maximises productivity benefits and also addresses potential resistance and anxiety about AI integration in daily workflows.