Google has officially announced that it will include ads within its AI Mode search results, using the Gemini model to deliver more conversational, helpful ad experiences.
In a blog post on May 20, 2026, the company outlined new ad formats designed to answer specific consumer questions and provide transparent product advice. The move marks a significant shift in how advertising appears in AI-enhanced search.
New Ad Formats Built With Gemini
Google is testing two new ad types specifically for AI Mode. The first is Conversational Discovery ads. These ads let advertisers answer a person's direct question by using Gemini to build tailored creative. For example, if someone searches for low-maintenance ways to make their home smell like a spa, the ad can highlight relevant product features.
The second format is Highlighted Answers. When AI Mode generates a list of recommendations, such as the best language learning apps for a trip, high-quality ads can appear in that list as a Highlighted Answer. Both formats include an independent AI explainer that evaluates and synthesizes information about a product or service, presented alongside the advertiser's creative. Google says this ensures transparency and builds trust. All ads will remain clearly labeled as "Sponsored."
The company cited internal data showing that 75% of people report making faster, more confident decisions when using AI Mode in Search.
AI Enhancements Coming to Standard Search
Beyond AI Mode, Google is bringing two new AI-powered ad experiences to standard Search in the coming months.
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AI-powered Shopping ads use Gemini to pull up the most relevant products for a search and automatically write a custom explainer highlighting why a specific product may be the right choice. This applies to high-consideration purchases like refrigerators or espresso machines.
Business Agent for Leads puts a smart brand agent directly inside an ad. Instead of filling out a static form, users can click "Chat" to get instant answers based on the advertiser's website. Google demonstrated this with a student researching universities who could chat with a brand agent to get immediate answers.
Direct Offers Pilot Expanded
Google launched the Direct Offers pilot in January 2026. Brands including Chewy, Gap, and L'Oreal have used it to surface relevant deals as shoppers browse. Today the company is upgrading the experience with three new features.
Travel expansion means partners like Booking and Expedia will soon be able to surface special offers directly within a person's AI-assisted trip planning.
With these updates, Direct Offers will naturally appear in AI Mode responses as shoppers explore options, making deals more instantly discoverable.
Preparing for the New Ad Ecosystem
Google recommended that advertisers build a strong foundation with AI Max for Search, AI Max for Shopping campaigns, and Performance Max to take full advantage of all the new AI-powered formats. The company said it will continue testing these formats to ensure they deliver a positive experience for consumers while making marketing more actionable.
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