Google unveils the new generation of ads coming to AI-powered Search

Google is embedding ads directly into AI-generated search answers, marking a major shift in how it monetizes its search engine.

According to new details from I/O 2026, Gemini 3.5 Flash is now surfacing tailored ads within AI Mode responses, alongside traditional organic results. The company is calling this a "new generation of ads" designed for the AI era of Search.

The new ad formats include "Conversational Discovery ads" and "Highlighted Answers." The former tailors ads to specific search queries, such as recommending products to fix a smell in a house, which could vary from deodorizer to a cheap box of baking soda.

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Highlighted Answers sees brands inserted into lists of recommendations at the end of AI Mode results. Google claims these ads are filtered using the same standards as its existing ad platform. AI Mode is now being used to generate detailed responses, with ads appearing alongside or within these answers. The new ads are currently undergoing testing, and Google has informed The Register that their implementation will feel natural and ultimately add value to users' searches.

Google also confirmed it is expanding AI-powered shopping ads into standard search results, using Gemini to create custom explanations for products. The company is even testing smart brand agents within ads, allowing users to interact with chat windows that explain product features.

With AI Mode and Gemini integration now central to Search, Google is doubling down on its AI advertising strategy, with the company only recently unveiling that it will be turning Google Photos into a virtual closet with Gemini.