Google is bringing major changes to its Search platform by adding AI-generated advertising experiences directly into AI Mode and traditional Search. The announcement was made during the company’s I/O 2026 conference, marking a major shift in how ads will appear inside AI-driven search experiences.
In a blog post, Google said, “As the Search experience becomes smarter and more conversational, we’re using Gemini models to experiment with new ad experiences designed to provide engaging, helpful answers that connect people with businesses.”
The company revealed that AI Mode will now feature conversational ads powered by Gemini. Instead of showing standard sponsored placements, these ads will generate tailored responses based on user queries. For example, if someone searches for low-maintenance ways to make a house smell like a high-end spa, Gemini will create a customised response while also highlighting relevant sponsored products or services.
Google is also introducing a new feature called “Highlighted Answers.” When AI Mode provides recommendations, it will now include “highly relevant, high-quality ads” within those suggestions. These ads will carry clear “Sponsored” labels to maintain transparency.
According to Google, 75% of users reported making faster and more confident decisions while using AI Mode, which encouraged the company to expand AI-powered advertising formats.
The AI advertising push is also expanding to regular Google Search. Over the coming months, Google plans to launch AI-powered shopping ads that will automatically generate product explainers for users researching items like televisions or refrigerators.
Google explained, “If someone searches for an espresso machine, Gemini will pull up your most relevant products and instantly write a custom explainer highlighting why your product may be the right choice for them.”
Another upcoming feature is the “Business Agent for Leads,” an AI chat agent integrated into Search. Google said students searching for universities could interact with the agent directly inside Search and receive instant responses.
Alongside these advertising updates, Google is redesigning Search with Gemini 3.5 Flash integration, a larger dynamic search box, and support for multimodal inputs including text, images, files, videos, and uploaded Chrome tabs.
The company also announced new AI-powered visuals, diagrams, dashboards, and a 24/7 autonomous monitoring agent capable of tracking blogs, news websites, financial updates, and sports data in real time.
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