Google Now Stuffing Ads Into Its AI Products

"In 2026, Google's AI is embracing that oldest and noblest of internet traditions: sponsored content. Over the weekend, Google released a tiny memo on its Ad & Commerce Blog, announcing a new type of sponsored content marketers can purchase, the Washington Post observed. This new type of ad will be featured in Google's "AI mode" - the AI chatbot which users can open on the side of a Google search - as well as the company's Gemini chatbot."

"As an example for advertisers, Google offered a scenario where a user is interested in buying a new rug. With the new AI ads, Google's AI mode could suggest a few sponsored rugs in response to user queries, instead of whichever rugs might have normally populated the results. In addition to the new ad placement, Google announced the launch of a "business agent," which it calls a "new way for shoppers to chat with brands, right on Search.""

"Based on the information provided, this is basically a branded chatbot within Google's AI mode chatbot, where users can "ask" companies like Lowe's about the difference between different floor tiles, without having to enter the Lowe's website directly (which, maddeningly enough, has its own proprietary AI shopping agent called Mylow.)"

"If this just sounds like an even crappier version of the already degraded Google experience, you might not be far off. Google's AI mode has been plagued with errors from the start, throttling traffic to publishers and hampering users with a poor search experience that discourages further engagement."

Google introduced a paid sponsored-content format that appears inside its AI mode sidebar and Gemini chatbot. Advertisers can pay to have products suggested directly by the AI during user queries, potentially replacing organic listings with sponsored options. Google also launched a branded "business agent" chatbot designed to answer product questions in a retailer's voice and connect shoppers without requiring a site visit. Some retailers already run proprietary shopping agents, creating overlap. Critics note AI mode has had errors, reduced publisher traffic, and a degraded search experience, suggesting monetization priorities may outweigh user experience improvements.

Read at Futurism