On Wednesday, Google announced its plans to introduce advertisements in AI Mode, the AI-driven feature integrated into Google Search. This initiative will allow ads to appear contextually under relevant AI-generated responses as part of a testing phase. AI Mode enables users to ask questions and receive AI-crafted answers, with the option to delve deeper through subsequent inquiries and links to additional resources.
In a blog post shared with TechCrunch, Google suggested that ads might enhance user experience by guiding them towards useful resources, such as website builders for starting a business. The tech giant highlighted that these ads could assist users exploring business ideas or understanding their target audience.
As advertising remains Google’s main source of revenue—garnering an impressive $66.89 billion in the first quarter of 2025—the integration of ads into AI Mode seems inevitable. However, this move may not resonate well with all users; a recent survey revealed that 36% of U.S. adults expressed discomfort with AI usage in advertising, indicating they are less inclined to support brands employing AI in their marketing strategies.
Currently, advertisers using Google’s Performance Max, Shopping, and Search campaigns with broad match targeting will be eligible to feature their ads in AI Mode. Users in the U.S. will first see these ads—primarily Search and Shopping ads—on both desktop and mobile platforms.
Competitors have also begun exploring ad placements within AI-powered products. For instance, Perplexity, an AI search engine, commenced ad trials last November, while Microsoft previously experimented with ads in its Copilot chatbot. OpenAI has hinted at the possibility of adopting an ad-supported model in the future to complement its subscription services.
Additionally, Google is broadening its ad strategy to encompass AI Overviews, which autonomously summarise answers to user queries. Soon, users in the U.S. will see Search and Shopping ads on desktop devices, with plans for expansion to other countries and mobile platforms.
In terms of AI Overviews, ads will be incorporated into AI-generated summaries when relevant to both the original query and the provided responses, clearly marked as “Sponsored.” This feature was first introduced in the U.S. on mobile platforms last October.
Despite these advancements, concerns have been raised by some publishers regarding the potential adverse impact on their advertising revenue due to Google’s evolving strategies. Google claims to consider these concerns while developing its AI search functionalities and related advertising products.
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