I can't be google Free My entire university infrastructure is based on google workspace.
And, yes, when I asked the lawyers (OGC = Office of General Counsel) about a decade ago about this, they acknowledged that this meant google could do stuff with the data (translation and the like). Presumably, this now includes AI (although I haven't asked).
I never did find out whether they have sanctions in place to prevent google from using PHI (private health information) in the medical school files (which are also all google infrastructure. Or, more importantly, whether those sanctions actually work.