Google is expanding ads inside its AI Mode results, according to new reporting from Search Engine Land. More users are now seeing Search and Shopping ads placed directly inside AI answers. This signals that Google’s early test from May has moved beyond limited experiments and is slowly becoming a new surface for Search advertising.

Google first started testing ads in AI Mode in the U.S. in May. At the time, the company said that Search and Shopping ads would show up in the AI interface across desktop and mobile. Google described AI Mode as its "most powerful AI search" tool. Those early tests appeared only for a small share of users. However, based on multiple recent sightings shared with Search Engine Land, the placements are now appearing more often.

Google is pitching conversational ad targeting

In August, advertisers had already received internal documents titled "Ads in AI Mode." Those materials explained how ad placement would function inside AI Mode and suggested that the rollout would accelerate ahead of the fourth quarter.

According to Google’s pitch, ad targeting will rely on the entire conversation between the user and the AI. Instead of matching ads to a single query, Google’s system will read the full flow of the prompt and the generated answer.

The broader shift toward monetizing AI experiences

Google’s push to monetize AI inside Search fits into a wider effort across the industry to monetize AI products. Perplexity, for example, is already testing conversational ads through sponsored follow-up questions. These are labeled as ads, but they are written by the AI rather than by the brand. Sam Altman has also continued to hint that ChatGPT may include ads in the future. This suggests that conversational advertising is becoming a broader category across major AI platforms.

What advertisers should watch

The reports from Search Engine Land point to a steady expansion of the test, not a full release. Right now, advertisers are mostly watching how often these ads appear and what kinds of queries trigger them. But as Google appears to ramp up testing in advance of the fourth quarter, this new surface may become a regular part of search campaigns.

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