Starting Monday, Zoom users will have the ability to open a document tool from within their video calling app and create shareable files based on their meetings, but they’ll also be prompted to use generative AI to help them write and edit. The new feature, essentially Zoom’s version of docs, is the latest attempt to compete with Microsoft and Google to become an all-encompassing workplace for enterprises.
The docs feature Zoom’s AI Companion, a generative tool built on LLM models from OpenAI, Anthropic, Meta and the company’s own that was unveiled last fall. It can take a meeting transcript and organize it into templates, or create tables, checklists and trackers to organize processes and tasks. The docs can then be embedded into Zoom meetings for sharing and editing.
“AI is what makes the experience so differentiated,” said Smita Hashim, chief product officer at Zoom. “The goal is that the mundane, frictionless tasks that take up so much of our time can be done by AI.”
Zoom Docs are the company’s latest update to its Workplace collaboration tool, which launched in March. It’s an attempt to attract customers in a crowded market: Google Workspace and Microsoft 365 dominate the space, and have already added their own AI features to the tools and their laptops.
The market is “extremely difficult to compete in,” says Will McKeon-White, senior analyst of infrastructure and operations at research firm Forrester, but not impossible: Google Docs is thriving in a world where Microsoft Word once ruled. Google Workspace has more than 3 billion users, while Microsoft Teams has more than 320 million monthly active users.
In this case, Zoom is betting that price will matter: Its Workplace plans include the company’s AI Companion at no extra cost (Zoom Workplace costs between $14 and $19 per user per month for smaller businesses, Microsoft’s Copilot for 365 add-on costs $30 per user per month, and Google’s Gemini for Business costs between $20 and $30 per user per month, in addition to the base cost of the service).
Gemini can also help users brainstorm in Google Docs, create images, and summarize and refine text. And CoPilot can work in Word, PowerPoint, and Excel to analyze information, rewrite information, and create presentations.
Convincing businesses to switch from one workplace technology provider to another is a challenge. Zoom may be banking on the fact that many organizations are already using Zoom alongside another provider, making them open to the switch. Zoom was looking for the next big thing that could match its rapid growth during the Covid-19 lockdowns, as people worked via Zoom or even attended Zoom weddings. In early 2023, the company reached a tipping point: the number of customers willing to pay for Zoom had already done so, and fewer people were turning to Zoom for “nice” Zoom calls with family or friends.
The company fell off the Nasdaq 100 in late 2023, and its stock is down nearly 90 percent from its 2020 high. Zoom laid off about 15 percent of its staff in early 2023 but apparently knew it needed to expand, so it began integrating more calendar features and adding cartoon avatars. Zoom has also seen recent growth in its Contact Center, a customer service channel for businesses. But to compete with bundled services like Google and Microsoft that also offer video calling, it needs to do more.
