The news: Google is gearing up for a wide release of ads in AI Mode search as advertisers grapple with concerns over brand safety and performance erosion in AI-curated environments.

• Google is pitching AI mode search ads to brands and agencies by circulating a document with tips on advertising in AI search and how the medium will differ from its traditional search ads, per Ad Age.
• The document reportedly explains how Google will tailor ads based on the content of user queries and AI Mode answers.
• The release comes shortly after Google initially tested ads in AI Mode with US desktop and mobile users.

Advertiser hesitations: Launching ads in AI Mode could help Google mitigate concerns over AI responses decreasing CTRs by improving ad visibility and engagement—but advertisers may remain wary.

• Google is still facing regulatory threats that would reshape the future of advertising. The tech giant was found to have an illegal monopoly in the ad tech market that limited competition and created barriers to entry for other players, and the DOJ has argued that Google engaged in anticompetitive actions to build and protect its monopolies.
• Google remains under significant regulatory scrutiny with multiple antitrust cases against it—legal challenges that could lead to forced selloffs and significant restructuring that would massively disrupt the digital ad market.
• And advertisers have transparency concerns with Google’s ad products—driving increased interest in competing offerings from other tech giants or smaller firms like The Trade Desk.