Google’s AI just got ad-ified

Google announced plans to integrate advertisements into AI Mode, its AI-powered search experience, marking a significant step in the company’s strategy to monetize its AI advancements.

Ads may appear “where relevant” below and “integrated into” AI Mode responses during a test phase, according to Google. AI Mode allows users to pose questions and receive AI-generated responses, with the option to explore further through follow-up questions and links to websites.

“In some cases, a website builder might be a good next step [in an AI Mode query], so we may show a helpful ad that can help [users] get started,” Google explained in a blog post. “From there, [the user] can ask questions to explore possible business ideas, what type of content they should develop, and even learn about their target audience.”

Given that advertising represents Google’s primary revenue stream—the company reported $66.89 billion in ad revenue in Q1 2025—the integration of ads into AI Mode was anticipated. However, consumer sentiment regarding AI and advertising remains cautious. A recent CivicScience poll revealed that 36% of U.S. adults express apprehension about AI in advertising, indicating a potential reluctance to purchase from brands utilizing AI in their ads.

Advertisers currently using Google’s Performance Max, Shopping, and Search campaigns with “broad match” will be eligible to have their ads displayed within AI Mode. Initially, users in the U.S. will see Search and Shopping ads in AI Mode across both desktop and mobile platforms.

Google’s ad empire expands into AI chat

Several competitors are also exploring advertising within their AI products. AI-powered search engine Perplexity launched ads in November and has not dismissed the possibility of collecting data beyond its platform to facilitate more targeted advertising. Microsoft previously conducted a brief pilot program for ads in its Copilot chatbot, and OpenAI has indicated it may adopt an ad-supported model to complement subscription services.

Separately, Google announced an expansion of ads within AI Overviews, its Google Search feature that automatically synthesizes and summarizes answers to queries. Search and Shopping ads will soon appear on desktop in the U.S., with plans to extend to “select countries” on both mobile and desktop in English.

These ads are inserted into AI-generated summaries “when relevant to both the query and the response provided” and are clearly labeled as “Sponsored,” according to Google.

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