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Google brings ads to AI Mode, but whether the format pays off remains uncertain

The news: Google has begun showing ads in its AI Mode search engine after announcing a rollout earlier this year. Ads in AI Mode appear at the bottom of search results and carry a “sponsored” label. According to a Google spokesperson, they’re part of a monthslong test that’s still underway.

The trend: While some AI search engines like Perplexity have experimented with ad monetization, Google’s move marks one of the first times a big player has ventured into AI search ads, alongside Microsoft with Copilot ads and Amazon with Rufus.

Google’s ad push stands in notable contrast to its largest genAI challenger, ChatGPT. Although recent hiring initiatives indicate plans for in-house ad-integration systems, OpenAI CEO Sam Altman has offered little clarity on when ChatGPT ads might roll out.

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