

Google recently introduced AI-generated answers in search results, now referred to as AI Overviews, which will soon include ads. These ads will be integrated into the AI summaries, labeled as 'sponsored', and drawn from advertisers' existing campaigns without requiring any adjustments from them. This move aims to maintain Google's dominance in search advertising while adapting to new AI-driven search technologies that compete with platforms like ChatGPT.
The inclusion of ads in AI Overviews is part of Google's broader strategy to innovate in advertising while managing threats from emerging technologies and competitors. Google's revenue is becoming less dependent on search ads, thanks to growth in other areas like cloud and hardware. However, traditional search ads will continue to be significant for Google, and the company is exploring other AI-enhanced ad experiences to potentially increase revenue.

Google plans to incorporate ads into its AI Overviews by testing the inclusion of search and shopping ads directly within the AI-generated summaries14. These ads will appear in a section clearly labeled as 'sponsored,' ensuring transparency about their promotional nature. The ads will be contextually relevant, matching both the user's query and the content of the AI Overview. This approach leverages Google's existing ad campaigns, requiring no additional action from advertisers to participate in this new format4. The integration aims to maintain user engagement on Google's platform while potentially increasing ad revenue by placing ads in a novel and highly visible context.

The primary purpose of Google introducing AI Overviews into their search results is to provide users with AI-generated summaries and answers to their queries based on live information from Search. This feature aims to help users get quicker answers by parsing various pieces of information and displaying it at the top of the search results. It is designed to be particularly useful for complex questions where information is scattered across multiple sources. Additionally, AI Overviews are meant to keep users from shifting to alternatives like ChatGPT or Perplexity, which also use AI-generated text to answer questions traditionally asked on Google.