Pick the Right AI

Level 2 · Pick the Right AI

1. Concept: The big all-rounders

   ChatGPT, Claude and Gemini each write, read files and search the web, so the best one is whichever does your work best.

   1. Term: ChatGPT

      OpenAI's assistant, with the widest spread of extras: images, voice, deep research and coding help.

      1. In plain words: OpenAI's assistant

         ChatGPT is made by OpenAI. It writes, answers questions, reads your files, makes images and talks out loud. The free plan gives you a taste of almost everything, with tight limits on the extras.

      2. How it works: Good when a job mixes tools

         It shines when one job needs several tools: a flyer image, a voice chat from the truck, a deep-research report with links. Plus raises the limits on all of it. Check the model menu at the top of the chat, because OpenAI's own pages disagree about which model the free plan gets.

      3. What it costs: $0, $8, $20 or a seat

         Free is $0, Go is $8 a month, and Plus is $20 a month with no yearly discount. Business costs $25 a seat month to month, or $20 a seat billed yearly, for 2 to 200 people. Checked Oct 23, 2026.

      4. Watch out: Training is on unless you switch it off

         On Free, Plus and Pro, your chats can train OpenAI's models until you turn off Improve the model for everyone under Settings → Data controls. Free and Go may show ads, a test that began in the US on Feb 9, 2026. OpenAI says it doesn't share your chats with advertisers. Business plans have no ads and don't train on your data by default.

         See also Limits you can't count, Keep Activity is on

   2. Term: Claude

      Anthropic's assistant, top of one big independent test scoreboard, with a coding helper in every paid plan.

      1. In plain words: Anthropic's assistant

         Claude is made by Anthropic. It writes, reads long files, searches the web and makes documents and slides, even on the free plan. Full disclosure: Iowa AI's website assistant runs on Claude, using startup credits, so weigh our opinions with that in mind.

      2. How it works: Top of the test scores

         Claude Opus 5.5 has the top score on Artificial Analysis, an independent battery of tests, as of Oct 23, 2026. Sonnet 5.5 is tied for second. Every paid plan includes Claude Code, a coding helper. The free plan leaves out Opus and the Research mode.

      3. What it costs: $0, $20 or a seat

         Free is $0. Pro is $20 a month, or $17 a month billed yearly ($200 up front). Team costs $25 a seat month to month, or $20 a seat billed yearly, for 2 to 150 people. Checked Oct 23, 2026.

      4. Watch out: Limits you can't count

         Paid plans promise no set number of messages, just a rolling five-hour limit and a weekly cap, shared with Claude Code. On personal plans you choose whether your chats train Claude (Anthropic's plan table calls it opt-out), so check Settings → Privacy. With training on, chats can be kept up to five years; with it off, 30 days. Team and Enterprise don't train on your content by default.

         See also Training is on unless you switch it off, Keep Activity is on

   3. Term: Gemini

      Google's assistant, built to work with Gmail, Docs and Drive, with paid plans that bundle in Google storage.

      See also Gemini in Google Workspace

      1. In plain words: Google's assistant

         Gemini is Google's assistant. It has its own app, and paid plans put it inside Gmail and Docs too. The free plan includes Deep Research, image making and live voice chat.

      2. How it works: Top of the people's vote

         Gemini 4 Argon leads Arena (formerly LMArena), a scoreboard built from people's blind votes, as of Oct 22, 2026. Google's score there is still marked preliminary. It's handiest when your files already live in Gmail and Drive. That top model needs Google AI Pro; the free plan runs a lighter one.

      3. What it costs: $0, $4.99 or $19.99

         Free is $0. Google AI Plus is $4.99 a month, with 400 GB of storage and the lighter Flash model. Google AI Pro is $19.99 a month or $199.99 a year, with Gemini 4 Argon and 5 TB of storage. Checked Oct 23, 2026.

      4. Watch out: Keep Activity is on

         If you're 18 or over, Keep Activity is on by default. That lets Google use your chats to improve its AI, people may review some, and reviewed chats can be kept up to three years. Turn it off under Gemini Apps Activity, or use a temporary chat. Google Workspace business accounts follow stricter rules.

         See also Starter is thin on AI, Training is on unless you switch it off

   4. Term: Which one should I pay for?

      Start free with all three, then pay for the one that does your work best.

      1. In plain words: No single best

         There's no single best AI. Each is better at some jobs, and the leaders trade places every few months. Even the sign-in-sheet app Alex built for a local real estate agent reads sheets with xAI's Grok, and the rebuild being tested uses Google's Gemini.

      2. How it works: Two scoreboards, two winners

         Arena (formerly LMArena) ranks models by people's blind votes, and on Oct 22, 2026, Google's Gemini led. Artificial Analysis runs a battery of tests, and on Oct 23, 2026, Anthropic's Claude led. OpenAI's newest models land mid-pack on votes but are among the cheapest to run. When the scoreboards disagree, your own test counts most.

         See also Top of the people's vote, Top of the test scores

      3. Try it: One question, three AIs

         Paste the same real question from your business into the free ChatGPT, Claude and Gemini. Compare the facts, the tone and whether each one shows sources. Circle any mistakes, then pick the answer you'd actually send a customer.

         See also Perplexity

      4. What it costs: Free, about $20, then seats

         All three have a free plan and a paid plan near $20 a month. Team seats from Claude and ChatGPT run $20 to $25 a person, or $14 on a yearly Google Workspace plan with email thrown in. Prices change about as often as Iowa weather, so check the official page before you buy. Checked Oct 23, 2026.

         See also From $7 a person, $21 a person, on top

2. Concept: Search-first tools

   When you need fresh facts with links you can check, use a tool that searches first and writes second.

   1. Term: Perplexity

      A research tool that answers every question with numbered sources, using models from several AI companies.

      1. In plain words: Answers with footnotes

         Perplexity searches the web for every question and puts numbered links next to the answer. Think of it as a search engine that writes you a short report.

      2. How it works: Built for research

         It's made for looking things up: quick answers with sources, plus a Deep Research mode for longer reports. Pro lets you pick models from OpenAI, Anthropic, Google, xAI and others, and taps paid business sources like Statista and PitchBook.

      3. What it costs: $0, $17 or $40 a seat

         Free is $0, with 3 Pro searches a day. Pro is $17 a month billed yearly; Perplexity's page doesn't show a month-to-month price. Enterprise Pro, for teams, is $40 a seat a month or $400 a year. Checked Oct 23, 2026.

      4. Watch out: Training is on by default

         On Free, Pro and Max, AI Data Retention is on by default, so your questions can be used for training. Turn it off under Account → Preferences; it won't pull back data already collected. Bigger multi-step jobs spend credits, a second meter to watch. Enterprise plans are never used for training.

   2. Term: Grok

      xAI's assistant, plugged into X for live news and trends, and now sold in one bundle with X perks.

      1. In plain words: Plugged into X

         Grok is the assistant from xAI. It searches X (formerly Twitter) and the web live, with links to its sources, and it makes images and short videos.

      2. How it works: Good at right now

         It's strongest on breaking news, trends and what people are saying on X. Even the $8 plan includes Cursor, a coding tool. On the independent scoreboards, Grok sits behind the leaders as of Oct 23, 2026.

      3. What it costs: $0, $8 or $30

         Since Oct 12, 2026, Grok comes in a bundle called The X Subscription. Free is $0, Plus is $8 a month ($80 a year) and Premium is $30 a month ($300 a year). Team seats start at $30 each. Checked Oct 23, 2026.

      4. Watch out: Training is on unless you switch it off

         xAI may use your chats to train its models. Turn off Improve the model in the app's Data Controls or under Settings → Data on the web, or use Private Chat. Business accounts aren't used for training. The plans changed on Oct 12, 2026, so older tutorials and screenshots are out of date.

         See also Your AI chats shape your ads

3. Concept: AI inside apps you already use

   If you already pay for Microsoft 365 or Google Workspace, or sell on Facebook, the built-in AI may be the cheapest place to start.

   1. Term: Microsoft 365 Copilot

      Microsoft's AI inside Word, Excel, PowerPoint, Outlook and Teams.

      See also Gemini in Google Workspace

      1. In plain words: AI where you already type

         Copilot is Microsoft's AI. On a business plan it works inside Word, Excel, PowerPoint, Outlook and Teams, and it can draw on your own work files and email.

      2. How it works: Good for Outlook shops

         It fits best if your day already runs in Outlook, Excel and Teams. Work accounts get Copilot Chat even without the paid add-on. Under the hood it runs OpenAI's latest models first, with other models to choose from.

      3. What it costs: $21 a person, on top

         The Copilot Business add-on is $21 a user a month billed yearly, or $25.20 month to month. Existing customers can get $18 for the first year through Dec 31, 2026. Microsoft 365 Business Standard with Copilot built in is $23.50 a user a month, billed yearly. Checked Oct 23, 2026.

      4. Watch out: Watch the extras

         The add-on needs a Microsoft 365 Business plan underneath. Some features that do multi-step jobs for you, like Copilot Cowork, bill by usage on top of the seat, so watch the bill. Work chats get Enterprise Data Protection and aren't used to train Copilot's models. The free consumer Copilot app can personalize ads from your chats until you turn off Allow ads personalization.

   2. Term: Gemini in Google Workspace

      Google's business plans for email and documents, with Gemini built into Gmail, Docs, Sheets and Meet.

      See also Microsoft 365 Copilot, Gemini

      1. In plain words: Email, docs and AI on one bill

         Google Workspace is Gmail with your own business address, plus Docs, Sheets, Drive and Meet. Gemini comes built in, so there's no separate AI bill.

      2. How it works: Pick the right tier

         Business Starter puts Gemini only in Gmail and Vids, plus a basic Gemini app. Business Standard adds it to Docs, Sheets, Slides, Drive, Meet and Chat, and gives you Google's most capable models in the Gemini app.

      3. What it costs: From $7 a person

         Per user per month with a yearly commitment: Starter $7, Standard $14, Plus $22. Month to month, they're $8.40, $16.80 and $26.40. Five people on Standard come to $840 a year, email included. Checked Oct 23, 2026.

      4. Watch out: Starter is thin on AI

         Starter leaves Gemini out of Docs and Sheets, so check the tier before you buy. Google says Workspace content isn't used to train its AI outside your company, or read by human reviewers, without permission. A personal Gmail account follows the consumer rules instead.

         See also Keep Activity is on

   3. Term: Meta AI

      Meta's free assistant inside Facebook, Instagram, WhatsApp and Messenger, plus a newer helper app called Muse.

      1. In plain words: Already in your pocket

         Meta AI is built into Facebook, Instagram, WhatsApp and Messenger, free for everyday use. In September 2026, Meta added Muse, a separate app that can carry out tasks for you, in the US and Canada.

      2. How it works: Good for social-first shops

         It's handiest if you sell through Facebook, Instagram or WhatsApp. Muse for Small Business connects to tools like QuickBooks, Shopify, Canva and Stripe, and asks before it publishes, sends or spends anything. Meta's own announcement features a grocery in Malvern, Iowa.

      3. What it costs: Free, or $7.99 and up

         Meta AI is free. Meta One Core is $7.99 a month and Premium is $19.99, with more AI image and video making. Muse has a free tier, then Power at $20 a month and Maximum at $100. Checked Oct 23, 2026.

      4. Watch out: Your AI chats shape your ads

         Since Dec 16, 2025, Meta uses your chats with its AI to personalize the posts and ads you see. Its announcement names no separate off switch, only Ads Preferences and which accounts you link in Accounts Center. Muse is still in limited testing. Keep customer details out of all of it.

         See also Training is on unless you switch it off

4. Concept: Open and local models

   Some AI models are free to download and run yourself, so nothing you type has to leave your building.

   1. Term: Your own laptop

      Free apps like Ollama and LM Studio run smaller AI models right on your computer, even with the Wi-Fi off.

      1. In plain words: Private and free

         A local model runs on your own computer. Nothing you type leaves the machine, it works without internet, and there's no monthly bill or usage limit.

      2. How it works: Smaller and slower

         On an 8 to 16 GB laptop with no graphics card, you run small models, mostly 1 to 5 GB downloads. On the class ThinkPads, the 1B model should write a short reply in under a minute (our estimate, so we time each laptop before class). They're fine for private drafts and summaries, not for deep research.

      3. Try it: Unplug and ask

         Install Ollama, then run ollama run llama3.2:1b once while you're online to download it (1.3 GB). Turn off the Wi-Fi and ask it to draft a reply to a customer. It still answers, because it never needed the internet.

      4. Watch out: Not every model is local

         In Ollama, a model whose name ends in :cloud runs on Ollama's servers, not your laptop, and Ollama sells plans for that, with Pro at $20 a month (checked Oct 23, 2026). Small models make more mistakes than the big cloud ones. LM Studio isn't well tested on newer Linux versions, so try it before you count on it.

   2. Term: Mistral

      A French AI company with a lower-priced chat app called Vibe and small open models that run on a laptop.

      1. In plain words: The European option

         Mistral is a French AI company. Its chat app, Vibe (it used to be called Le Chat), keeps your data in the EU by default. It also publishes small open models, like Ministral 3, that you can run on your own laptop.

         See also Your own laptop

      2. How it works: Cheaper, a step behind

         Vibe Pro includes all-day coding help, plus spreadsheets and slides. On the independent scoreboards, Mistral's best model sits well behind the leaders as of Oct 23, 2026.

      3. What it costs: $0, $14.99 or $24.99

         Free is $0. Pro is $14.99 a month, or $5.99 for verified students. Team is $24.99 a user a month. Checked Oct 23, 2026.

      4. Watch out: Training is on by default

         On Free, Pro and Team, your chats train Mistral's models unless you opt out, and Team admins can switch it off for everyone. Before a business uses one of Mistral's open models, read that model's license, because Mistral's pages and others disagree about commercial use.

   3. Term: DeepSeek

      A Chinese AI company with a free chat app, very low developer prices and open models, and it stores your data in China.

      1. In plain words: Cheap and open, from China

         DeepSeek is a Chinese AI company. Its chat app is free, and it publishes its models openly, so US companies can host copies of them too.

      2. How it works: Strong for the price

         Its newest model gets solid scores for very little money. By Artificial Analysis's numbers, it's the best price for performance among leading models (Oct 23, 2026). The full model is far too big for a laptop.

      3. What it costs: Free app, pennies for developers

         The chat app is free. Its cheapest model costs developers $0.30 per million tokens in and $1.20 out at peak hours, half that during ordinary US daytime. A token is a few letters of text. Checked Oct 23, 2026.

      4. Watch out: Your data goes to China

         DeepSeek's privacy policy says it stores your data in China and uses it to train its models, with a right to opt out. In February 2025, Iowa's governor banned DeepSeek from use in state government, calling it a security risk to Iowa. Keep customer data out of the app, and if you sell to the State of Iowa, check the rules first.

         See also Your own laptop