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At this year’s Google I/O, Google unveiled a suite of productivity updates to Google Workspace, most notably integrating Gemini AI into Workspace applications such as Docs, Sheets, Slides and Gmail.
In addition to AI-powered writing assistance and data insights, Google has rolled out smarter features in Google Meet, including real-time speech translation and improved video moderation tools.
For the enterprise, Google upgraded administrative controls, such as advanced security settings and streamlined device management.
With these releases now live, and available in many cases to users worldwide, Google Workspace is not just challenging Microsoft 365, but attempting to position itself as a leader in AI-first productivity software.
How Google Workspace's AI Is Different
Google Workspace’s integration of Gemini AI sets it apart from competitors like Microsoft 365, which uses OpenAI’s GPT models in its Copilot feature. Unlike Microsoft’s modular approach, Google embeds AI natively across Docs, Sheets, Slides and Gmail, enabling seamless content creation, data analysis and workflow automation within a unified environment.
Google’s strength in natural language processing provides more context-aware and intuitive interactions, improving productivity beyond basic automation. Additionally, Google emphasizes enterprise-grade security and privacy controls, helping organizations maintain security and compliance when they adopt AI. Together, these factors help position Google Workspace as a leader in AI-first productivity software.
AI in the ‘Suite’ Spot
Google’s continued investment in Workspace — particularly through its integration of AI technologies like Gemini — is a fundamental change in productivity software and is shaping the competitive dynamic with Microsoft 365, said Tom Keuten, senior vice president and Microsoft alliance lead at Rightpoint,
Keuten sees this competition as a positive development for the industry as a whole. “Google’s investments are great for their customers, but also for Microsoft’s, as both groups will get better work experiences,” he explained, noting that Microsoft has historically responded well to external pressure, as seen in its rapid innovation with Teams in response to Zoom.
Microsoft must remain vigilant, Keuten warned. While the company has a larger share of the market — plus the high switching costs working in its favor — complacency is risky.
“Companies will be willing to pay that cost if Microsoft lets up on their product development,” Keuten said.
However, integrating AI into legacy workflows is no small feat, Keuten warned. Employees often hesitate to adopt new tools until they’re sure they’ll be any good, Keuten said. “Employees simply are not used to using these AI assistants and are not willing to give up what they do until they trust that the AI assistants will help,” he said.
To address this, leadership must clearly communicate expectations and ensure that AI solutions are solving meaningful problems. With thoughtful implementation, AI can change work the same way the shift to remote work did during the pandemic, Keuten said.
Though he supports the promise of AI-native productivity, Keuten is cautious about over-automation. He encourages employees to stay informed and urges decision-makers to ensure that automation helps — rather than hurts — the customer and the employee experience.
Microsoft 365 vs. Google Workspace: Which Platform Should Organizations Use?
The real power of AI lies in its ability to use an organization’s own data and intellectual property in context, added Simon Townsend, senior vice president and head of the Office of the CTO at ControlUp. That’s where ecosystems like Google Workspace with Gemini or Microsoft 365 with Copilot force businesses to decide which platform they go with. A standalone AI tool isn’t enough — it needs to be deeply integrated with data, communication and workflow systems to deliver real value, he said
However, despite new features and improvements, he doesn’t see this significantly shifting the competitive dynamic between Google Workspace and Microsoft 365.
“Most organizations have already committed to either Microsoft or Google for their workspace and communications stack,” Townsend explained. “Unless the AI capabilities are dramatically better, I don’t see AI alone driving a platform switch.”
Compliance and governance are also important as businesses adopt AI-driven tools, Townsend said. Organizations must ensure that AI-generated data is accurate, compliant and shared appropriately. Visibility into what tools are being used, what data they read and where they’re being deployed is essential.
The current trend is not a reinvention, but as a natural evolution of existing productivity suites, Townsend said. While AI adds value, it doesn't eliminate the need for core functions — AI in Excel doesn’t replace the need for tools like Word.
Finally, AI will mostly empower human-centric work rather than over-automate it, Townsend said. While some roles may shift or diminish, most tasks will simply become more efficient as AI augments existing processes.
Google Takes the Lead
Google is no longer playing catch-up. With these updates announced at I/O, the company has shifted from defense to offense. The integration of Gemini AI across its product suite, along with features like real-time translation in Meet and task automation, demonstrate a strategic leap forward, said , productivity tech expert and founder of Notta.ai.
“This puts pressure on Microsoft to react instead of to lead, which is the exact opposite of where we stood just two years ago,” said Zhang.
While Microsoft’s Copilot remains powerful, Google’s AI is more natively embedded and user-friendly. The shift challenges Microsoft to innovate faster.
AI Productivity Suites Are the New Standard
AI capabilities like Gemini are rapidly becoming table stakes across productivity suites, Keuten said. The era of AI as a bonus is over, Zhang said. AI is becoming a native part of productivity platforms, just as integrated as legacy features like font changes or mail merges, Townsend agreed. Within 18 months, AI tools will be as fundamental as spell-check or auto-save. Features like Gmail’s smart replies and AI-powered inbox cleanup are already addressing real, everyday challenges.
“Any productivity suite without robust AI capabilities will feel antiquated by 2026,” Zhang said.
The real differentiator will be how well these tools are integrated into broader enterprise systems, Keuten said. Microsoft is already making progress through connectors that link AI into other platforms, giving it a practical advantage in many workplaces, he said.
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The biggest challenge in adopting AI isn’t the technology — it’s the people and processes. Many businesses are deeply rooted in traditional workflows. AI tools that can draft email messages, summarize meetings and assign tasks disrupt long-standing structures and habits.
“Companies must rethink their entire processes in light of AI augmentation rather than just bolting AI onto existing workflows,” Zhang said.
The industry is entering the age of intelligent work platforms, Zhang predicted. Google's Project Mariner and Agent Mode go beyond reactive software, creating systems that help users across apps and sites. It’s not just a smarter document editor — it’s a foundational shift in how digital work is done.
Google is building AI features with privacy and transparency in mind, but traditional IT governance models will need to evolve. Organizations must develop new compliance strategies for AI-generated content and autonomous actions.
Google’s competitive edge isn’t just its AI power, but the deep integration across its ecosystem. Smaller platforms like Zoho, Notion or Canva will need to hyper-specialize or find ways to align with major platforms rather than go head-to-head.
“The risk isn't over-automation — it's under-preparation,” Zhang warned. “The companies that thrive will be those that use AI to eliminate mundane tasks so their people can focus on higher-value creative and strategic work.”
Editor's Note: Read about more happenings in the productivity space:
- AI Makes the Leap From Individual Productivity to Cross-Team Collaboration — Miro and Microsoft both launched AI solutions focused on teamwork, not individual productivity. What's different here?
- Zoho Enters Agentic AI Fray With Zia Agents — Zoho's new AI agent platform, Zia Agents, is built for its own productivity suite. The agentic AI integrates seamlessly across the over 50 Zoho workplace apps.
- The Future of Team Collaboration According to Coda, Microsoft Loop, Notion and Slite — A look at how four generative AI-powered collaboration platforms aim to transform team productivity.