Google to Introduce Ads in AI-Powered Search Summaries

Google is experimenting with incorporating search and shopping ads into its AI-generated answers (AI Overviews) in the U.S. This initiative is designed to bolster Google’s dominance in the advertising sector by tapping into the emerging generative AI technology and enhancing its ad revenue.

The company announced on Tuesday that it will begin testing these ads shortly after introducing the AI Overviews feature at its annual I/O conference. Ads will be displayed in a ‘sponsored’ section within the AI Overview, based on the relevance of the query and the provided information, according to a blog post by Google.

By integrating AI into its search engine, Google aims to extend its influence beyond traditional search advertising and boost its primary revenue stream. In the first quarter ending March 31, Google reported a 13% increase in advertising sales, totaling $61.7 billion.

Google plans to continue experimenting with new ad formats, seeking feedback from advertisers throughout the process. At its recent I/O conference, Alphabet showcased advancements in AI across its operations, including enhancements to the Gemini chatbot and its flagship search engine.