"Google is adding a way for consumers to buy things while seeking artificial intelligence-powered answers on search and in its Gemini chatbot part of a plan to make money more directly from consumers' AI use. The Alphabet Inc. company has been testing new ad formats on Google Search's AI Mode that will allow retailers and other advertisers to offer products there, the company said in a letter to the advertising community on Wednesday."
"Users can also now buy items from Etsy and Wayfair within Gemini, the company said. A new feature called Direct Offers within AI Mode will allow brands to offer discounts to potential shoppers. We aren't just bringing ads to AI experiences in Search; we are reinventing what an ad is, said Vidhya Srinivasan, the Google vice president overseeing ads and commerce."
Google is enabling direct consumer purchases within AI-powered Search and the Gemini chatbot, allowing retailers to sell through AI interactions. The company is testing new ad formats in Search's AI Mode and has partnered with platforms such as Etsy and Wayfair to permit in-chat buying. A Direct Offers feature will let brands present discounts to likely shoppers inside AI Mode. Google standardized payments and digital identity with partners including Shopify, Target and Walmart to enable checkout in AI products. The effort aims to monetize AI usage through ads and commerce as tech firms invest heavily in AI infrastructure. Competitors including OpenAI and Perplexity are testing ads in chatbots and shopping features, while major tech companies plan record AI infrastructure spending.
Read at www.mercurynews.com
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