Online Search to Get Smarter as Google Introduces AI-Powered Ads
In Focus
- Google is testing two ad formats in Search powered by Gemini AI
- The company plans to use ads to respond to queries raised by users
- A new Shopping ads agent will help users find what they want faster
In a move that will likely end ad-free search results on Google, the tech giant is testing a new ad experience. This move brings AI ads into Google Search with the aim of providing more personalized responses to users. While unveiling the update at the I/O conference, Google said Gemini will introduce dynamic, AI-generated ads into AI mode and display them alongside search results.
How Does Google AI Search Ads Work?
Google is adding AI-powered to AI Mode in Search after its research showed that 75% of users use the tool to make decisions faster. Based on this insight, the tech giant is testing two ad formats, both powered by Gemini. Google’s Search ads update is designed to enhance transparency via “Sponsored” labels while empowering users to make decisions faster.
According to Google, the “Gemini model evaluates and synthesizes information about a product or service, and displays that context alongside the advertiser’s creative.”
The company will use two approaches to surface ads as follows:
1. Conversational Discovery Ads
With this approach, Google will use ads to respond to queries raised by a user. For instance, a user may enter a search query such as “I am trying to make my house smell like those fancy spas or a rainy forest. What are some low-maintenance ways to make my home smell amazing?” In response, the Gemini model will generate a custom creative showing the relevant features.
2. Highlighted Answers
AI Mode will now feature “Highlighted Answers”. Once the tool generates recommendations, it will display ‘highly relevant, high-quality ads’ on the list.
Google to Include Next-Gen AI Ads in Search
Google is pushing AI-powered ads beyond AI Mode by using agentic tools. The company is introducing two agentic ad formats to Search in the coming months as follows:
1. A Shopping Ads AI Agent
Google is introducing an AI-powered Shopping ads agent to help users find what they want faster and with ease.
“If someone searches for an espresso machine, Gemini will pull up your most relevant products and instantly write a custom explainer highlighting why your product may be the right choice for them,” Google noted in a blog.
2. A Business Agent for Leads
Google is introducing a Business AI Agent into the search experience. The AI agent allows users to ask questions and receive instant responses via a chat agent. The company said this turns a “practical interaction into a valuable lead.”
What Other Changes Can Users Expect in Search?
In addition to AI powered Google ads, the search giant said it is maximizing Antigravity 2.0 to support creation of visuals, dashboards, and diagrams in Search as part of query responses. Google is also enhancing agentic capabilities in the search experience. One of the agents runs autonomously in Search, keeping users updated on relevant topics around the clock. These capabilities reduce the time users spend clicking the blue links previously displayed in search results.
