What to know

  • Google will start showing advertisements in its AI-powered search results beginning next month.
  • The company plans to integrate ads seamlessly into AI Mode responses while maintaining user experience quality.
  • This move represents Google's first major attempt to monetize its AI search features since launching them last year.

Google announced yesterday that it will begin displaying advertisements within its AI-powered search results starting next month. This marks the first significant monetization effort for the company's AI search features since they were introduced last year.

The new ad format will appear directly within AI Mode responses, which provide users with conversational answers to their queries rather than traditional search results. Google says these ads will be clearly labeled but designed to blend naturally with the AI-generated content.

"We've been carefully testing how to integrate ads into AI Mode in a way that's helpful and transparent," said Sundar Pichai, Google's CEO. "Our goal is to balance monetization with maintaining the quality of the search experience."

According to Google, initial tests show that properly placed ads within AI responses can actually enhance user experience by providing relevant purchasing options or service information directly related to their queries.

The move comes as Google faces increasing pressure to generate revenue from its substantial investments in artificial intelligence technology. The company has reportedly spent billions developing its AI capabilities, including the models that power AI Mode.

Advertisers will be able to bid for placement within specific types of AI-generated responses through an extension of Google's existing ad platform. The system will use contextual relevance to determine which ads appear in which responses.

Industry analysts view this development as inevitable. "Google's business model has always been ad-supported," said Sarah Johnson, tech analyst at Morgan Stanley. "They needed to find a way to monetize AI search while preserving what makes it valuable to users."

Privacy advocates have expressed concerns about how user data might be used to target these new ad placements. Google insists that the same privacy controls that apply to traditional search ads will extend to AI Mode advertisements.

The rollout will begin in the United States before expanding to other markets later this year. Google says it will closely monitor user feedback and make adjustments to ensure the ads don't detract from the AI search experience.