Google experiments with ads in AI search mode

Google has begun experimenting with advertisements inside its AI-powered Search interface and Gemini-driven experiences, the company has confirmed.

During an appearance on the Silicon Valley Girl YouTube podcast, Robby Stein, Vice President of Product for Google Search, revealed that the company is testing ad placements within Search’s AI Mode as well as other Google AI experiences.

When asked whether traditional Google Ads might become obsolete as AI-driven web search gains prominence, Stein said he did not foresee that happening. He explained that while users’ habits are changing, Google remains central to everyday needs — from obtaining insurance quotes and discovering local businesses to seeking recommendations tailored to specific queries.

Stein said that one can do many new things, highlighting multimodal and conversational search as examples — such as using a picture of a pair of shoes to find similar designs, or asking detailed, context-aware questions about restaurants for a group with dietary restrictions. These new use cases, he explained, could make search more useful for businesses in an advertising context.

Stein added that while the company has initiated early experiments, its primary focus remains on “building great consumer products first and foremost.”

Last month, Mint, citing The Information, reported that OpenAI is also exploring ad placements within ChatGPT, potentially showing users ads based on the platform’s memory — the information it retains to personalise conversations.

Both Google and OpenAI operate their AI tools on a tiered model — offering free versions with limits and premium subscriptions for advanced features. However, the high operational costs of running large-scale AI systems have pushed companies to explore new monetisation avenues, including advertising, to sustain their free offerings.

Unlike traditional search results, where ads appear alongside links, AI-driven responses are contextual and conversational, leaving fewer obvious spaces for advertising. Integrating ads seamlessly within AI-generated answers could help companies maintain revenue streams without disrupting user experience.

For now, Google and OpenAI are both said to be in early testing stages, evaluating user responses to ad placements within AI experiences before proceeding with wider rollouts.