The news: On the heels of strong Q1 earnings, Google said it may bring ads to its Gemini AI chatbot, according to SVP of knowledge and information Nick Fox.

The trend: The move comes as AI chatbots increasingly look to advertising as a monetization opportunity.

• Gemini’s main competitor, ChatGPT, continues to lean into advertising as a key future revenue stream after beginning an ad pilot earlier this year.
• Microsoft’s Copilot chatbot has offered sponsored listings below AI responses since 2023; these ads have so far shown a 153% increase in clickthrough rates and 54% improvement in user experience compared with traditional search, per Microsoft data shared with EMARKETER.
• Amazon’s Rufus shopping assistant chatbot is testing ads and preparing to move from beta to launch after testing shoppable ads and sponsored product offerings within Rufus’ interface.

Why it matters: Google had previously said it had no plans to bring ads to Gemini, even as the broader AI chatbot market began exploring ad-based monetization. But lofty AI infrastructure costs (Alphabet plans to spend $185 billion in capital expenditures this year) necessitate that Google prove Gemini can become a more meaningful revenue driver.

The reality is that AI chatbot ads remain an emerging format, and it will take multiple rounds of testing and refinement to deliver results comparable to traditional search advertising. Still, Google’s scale as an ad leader, combined with its mature adtech stack, could give it an early advantage—while moving sooner on chatbot ads may help it deepen user familiarity and pull ahead of competitors.

Google also needs to convince advertisers that Gemini is the AI platform most worthy of their budgets, despite trailing ChatGPT in its consumer base and overall usage. The company could ease doubts by leaning on two advantages: