Zoom Challenges Google and Microsoft Dominance with New AI-Driven Docs Feature

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Beginning on Monday, Zoom will introduce a new feature that allows users to generate and share documents directly from their video conferencing application, incorporating generative AI to assist in the writing and editing process. This innovation, akin to Zoom's take on Google Docs, represents the company's latest move to vie with Microsoft and Google in becoming a comprehensive workplace solution for companies.

The documentation introduces Zoom's AI Companion, a creative instrument developed using LLM models from OpenAI, Anthropic, Meta, and Zoom's proprietary models, which was revealed last autumn. This tool is capable of transforming meeting transcripts into structured formats or creating tables, checklists, and trackers to streamline processes and tasks. These documents can subsequently be linked to Zoom meetings for collaborative sharing and modification.

"AI is the key to creating a unique experience," states Smita Hashim, the chief product officer at Zoom. "Our aim is for AI to handle the tedious and time-consuming tasks that often bog us down."

Zoom has introduced a new feature called Zoom Docs to its collaborative platform, Workplace, which was launched in March. This move aims to entice users in a highly competitive field, where giants like Google Workspace and Microsoft 365 lead and have enhanced their offerings and laptops with artificial intelligence capabilities.

Will McKeon-White, a senior analyst specializing in infrastructure and operations at Forrester, acknowledges that the market presents significant competition challenges, yet it's not insurmountable—as evidenced by Google Docs flourishing in an arena once dominated by Microsoft Word. Google Workspace boasts a user base exceeding 3 billion, in contrast to Microsoft Teams, which has over 320 million monthly active users.

In this scenario, Zoom is wagering on the significance of pricing: Its Workplace packages come with the AI Companion feature without additional charges (Zoom Workplace is priced at $14 to $19 per user each month for smaller businesses. In comparison, Microsoft’s Copilot for 365 extension is priced at $30 per user monthly, and Google's Gemini for business is in the range of $20 to $30 per user monthly, on top of the fundamental service fees).

Gemini offers functionalities such as facilitating idea generation in Google Docs, generating images, and enhancing or condensing written content. Meanwhile, Copilot extends its capabilities to Word, PowerPoint, and Excel, enabling it to interpret data, rephrase content, and assist in crafting presentations.

Convincing companies to switch their workplace technology providers is a tough sell, but Zoom might be leveraging its existing foothold in many organizations that use its services in tandem with others, potentially making them more amenable to fully transitioning to Zoom. The company has been on the hunt for a new breakthrough to match the explosive growth it experienced during the Covid-19 pandemic when its platform became a staple for remote work and even hosted virtual weddings. However, by early 2023, Zoom reached a critical juncture—most organizations inclined to pay for its services had already done so, leading to a decline in the casual, social use of Zoom for connecting with loved ones.

By the close of 2023, the company was removed from the Nasdaq 100, experiencing a drop in its stock value of almost 90% from its peak in 2020. In an effort to manage its resources, Zoom reduced its workforce by 15% at the start of 2023. Recognizing the need for diversification, it started to incorporate more scheduling functionalities and introduced animated avatars. Additionally, Zoom has witnessed growth in its Contact Center, which serves as a customer support platform for companies. However, to effectively compete with comprehensive service providers like Google and Microsoft, which also offer video conferencing, it must broaden its offerings.

Facing the need to adapt post-pandemic popularity, Zoom has aggressively incorporated artificial intelligence into its offerings. In April, Zoom unveiled its Workplace collaboration features, introducing an AI assistant capable of summarizing meetings and conversations, as well as composing messages and emails. Furthermore, in July, Zoom enhanced its workflow automation feature, which now triggers automated and repetitive alerts related to meetings and ongoing tasks, such as summary reports and project progress updates.

Zoom's ultimate ambition extends beyond its current offerings. In a June conversation with The Verge, Zoom's CEO and founder, Eric S. Yuan, shared his futuristic perspective where artificial intelligence powers digital counterparts to represent individuals in meetings and manage email communications. According to Yuan, this AI-enhanced future promises reduced workloads. (It was not clarified if Zoom is actively developing these digital twins.)

Currently, a significant obstacle that technology in the workplace needs to address is the disorder caused by numerous notifications. Employees are bombarded with emails, messages, phone calls, and multiple locations for document storage, leading to inefficiency as they spend time searching for information. According to McKeon-White, Artificial Intelligence (AI) has the potential to alleviate this issue, particularly if all the data is consolidated within a single company's software system.

Zoom's expanding platform shows promising prospects, according to Adam Holtby, a lead analyst specializing in workplace transformation at Omdia, especially for frontline employees who have historically been overlooked by giants like Google and Microsoft. These workers, not confined to desks, are primed for digital innovation and in search of technological solutions.

Implementing significant advancements in artificial intelligence within the workplace will require substantial financial resources and the education of staff. Businesses aim to lead in the AI domain, yet certain executives have offered minimal direction to their employees. The effects of such financial commitments might not become apparent until well into this decade.

Holtby emphasizes that Zoom must further expand its artificial intelligence capabilities to demonstrate the value and priority of its tools. Despite the current excitement around AI, achieving widespread adoption of AI technology across various worker segments remains a gradual process.

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