Google begins its deployment of ads in AI chatbot conversations

As AI models evolve - digital advertising does too. Google has begun its push for ads to appear in conversations with AI chatbots.

Google begins its deployment of ads in AI chatbot conversations
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Tech Reporter
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TL;DR: Google is integrating ads into AI chatbot conversations through its AdSense network, expanding digital advertising into generative AI platforms.

With the gradual shift from traditional search engines to AI chatbots, it was inevitable for tech companies to explore ways to monetize AI chatbots through digital advertising. That time appears to be upon us, with Google's ad network beginning to display ads in chatbot conversations.

Credit: Getty Images
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Credit: Getty Images

As reported by Bloomberg, Google's AdSense network began testing AI-based ads last year on apps including iAsk and Liner. Since then, Google's AdSense for Search network has expanded to include generative AI conversations, a move that seeks to consolidate its position as a leader in search, AI, and digital advertising.

"As Google invests heavily to protect its lead, finding the best way to monetize generative AI will be crucial," said Tomasz Tunguz, a general partner at Theory Ventures.

Given the high cost of LLM queries, the subject of monetization for AI startups is a perplexing one. Perplexity AI, a key competitor in AI search, operates on a model that establishes direct relationships with brands to advertise on the platform. To contrast, Google's model operates on a programmatic scale, utilizing an automated, data-driven system for buying and selling ad space in real-time.

How advertising affects the chatbot experience remains the key factor for users. Perplexity, for example, allows brands to sponsor follow-up questions to certain queries. iAsk, before inviting follow-up questions, displays ads below its AI-generated responses. Liner is described to deliver a "select number of ads tailored to users' searches".

While the current advertising models are relatively noninvasive, the future of digital advertising in a landscape molded by AI remains uncertain. It's certainly possible that the difference between real and sponsored outputs will remain clear. But like AI-generated video, text, or imagery - it might soon become harder to distinguish.