The news: Google is testing its new Highlighted Answers ad format in AI Mode, bringing sponsored results into the AI search tool’s personalized chat with US mobile and desktop users, the company confirmed with EMARKETER.

Highlighted Answers, which Google first teased at Google Marketing Live in May, are text-based ads that AI Mode shows users when making recommendations.

• The ad is marked by a “Sponsored” label but is otherwise identical to AI Mode’s other output.
• The format includes the name of the advertiser hyperlinked to a corresponding landing page, a promotional quote attributed to the advertiser, and an AI-generated summary of the advertiser’s product.

The caveat: Early sightings of the ad format posted on X illustrated the extent to which Highlighted Answers can blend into the organic results alongside them. Their appearance could annoy some users.

Consumers want ads to be transparent, and if any think they’re being tricked into clicking an advertising link, they will lose trust in a brand. In AI search platforms, where brand equity is difficult to guarantee, a consumer interaction that sows distrust can be costly.

Why this matters: Since Google began showing ads in AI Mode in November, it has rolled out carousel shopping ads, promos that feature Gemini-generated summaries of products, Highlighted Answers, and other formats. The company will likely continue to launch ad experiments as the AI search space matures.

But growing pains are inevitable, and brands need to be on the lookout for how they manifest. This will be critical as more consumers adopt AI search tools and brands find more advertising opportunities. AI search advertising is expected to gain more share of search ad budgets over the next several years, from 1.3% in 2026 to 13.6% in 2029, per our forecast.