Google Chat is introducing a new admin setting to restrict space creation for specific users or groups. Previously, chat restrictions were an all-or-nothing toggle. The new feature offers more granular control with three restriction levels. Administrators can now choose to restrict only space creation, allowing 1:1 and group direct messages to still be created. Alternatively, they can restrict all conversation creation, including DMs. This enhancement is beneficial for organizations needing to manage space creation through approval workflows or designated creators. Educational institutions, frontline environments, and vendor teams are prime examples of where this feature would be useful. Admins can configure these restrictions at the domain, OU, or group level within the Admin console. End users will see the "create space" option disabled but can still send direct messages. The feature is rolling out gradually to Google Workspace editions, starting August 14, 2026.