Google is expanding its advertising presence within its AI Mode search experience, encouraging advertisers to purchase ad placements in this evolving search environment, as reported by AdAge.
According to slides presented to potential buyers, Google emphasized the role of advertising in its “most powerful AI search experience.” The company stated, “As we apply the power of Generative AI to Search, Ads will continue to play a critical role in helping consumers find helpful information and enabling businesses to be discovered online.” These new advertisements will manifest as text and shopping ads, complete with product details, embedded within AI Mode chats. They will appear in response to user queries, displayed in banners beneath AI search results and clearly labeled as “Sponsored.” Google has described this integration of AI Mode advertisements as an “experiment.”
The rollout of these AI Mode ads is anticipated before the fourth quarter. Google has already initiated showing more ads in AI Mode and has reported “incredible results.” This follows an announcement in May 2025, where Google indicated it was testing such ads, noting, “Where relevant, ads may appear below and integrated into AI Mode responses.”
This strategic shift comes as Google seeks to maintain its substantial ad revenue, which was estimated at $96.5 billion in the fourth quarter of the previous year. While ads have been rare in traditional AI chatbots like Google Gemini and ChatGPT, Google’s transition towards AI search is poised to reallocate its vast ad inventory. The company currently holds a significant lead in AI search, registering 16.5 billion visits in December 2024, vastly surpassing competitors. Projections indicate a substantial increase in spending on AI-powered search advertising, expected to reach nearly $29 billion by 2029.
