Microsoft and Google compete on AI enterprise pricing models

Microsoft is restructuring the pricing for its AI services by moving toward a usage-based billing model integrated into existing software licenses. For GitHub Copilot, the company has introduced a $19 per user monthly rate for Business and $39 per user for Enterprise. To encourage migration, Microsoft is offering promotional credits of $30 or $70 for customers switching between June and August.

In the competitive landscape for enterprise productivity AI, a cost comparison in the Indian market shows Google's Workspace with Gemini integration is significantly less expensive than Microsoft's offering. Google provides its service for 864 Indian Rupees per user monthly, whereas Microsoft 365 Business Standard with Copilot costs 1,955 Indian Rupees. The comparison also notes differences in storage, with Google providing 2 TB compared to Microsoft's 1 TB.

Both companies continue to deepen AI integration within their respective ecosystems, with Microsoft focusing on Word, Teams, and the Office suite, while Google embeds Gemini into Gmail, Docs, and Drive.