Google pitching advertisers on ads within AI Mode, report says

Google is pushing advertisers to buy ads in AI mode, according to a report from AdAge. The publication caught onto slides from Google pitching AI Mode ads to potential buyers.

"Be part of our most powerful AI search experience, as customers explore their biggest questions with AI Mode," read one slide in the presentation. "As we apply the power of Generative AI to Search, Ads will continue to play a critical role in helping consumers find helpful information and enabling businesses to be discovered online."

Google reportedly told advertisers that the new ads would come in the form of text and shopping ads with product details within AI Mode chats. The ads would be presented in response to user queries.

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From a mock-up in the presentation, the ads appear in banners under AI search queries, indicated by a "Sponsored" label. The slides describe the AI Mode advertisements as an "experiment."

According to AdAge, Google will roll out ads in AI mode before the fourth quarter. The tech giant told AdAge that they have already started showing more ads in AI mode and have seen "incredible results." In May 2025, Google announced that it was testing these ads, writing in a blog post, "Where relevant, ads may appear below and integrated into AI Mode responses."

Google's revenue from ads was estimated to be $96.5 billion in the fourth quarter of last year alone. So far, advertisements have been rare in AI chatbots like Google Gemini and ChatGPT. But as Google shifts away from traditional search and toward AI search, the company's massive ad inventory could shift as well.

Google has a big head start when it comes to AI search, and so far it has 30 times more traffic than its rivals. Its AI search results surpassed those of rivals like ChatGPT, with 16.5 billion visits in December 2024.

Google inserting ads into its AI search tools is just the beginning. Spending on AI-powered search advertising is projected to reach nearly $29 billion by 2029, according to Reuters.