Ads pressured to evolve as AI changes Google search

Core Insights - Google is integrating ads into its new AI Mode for online search to maintain its advertising revenue while competing with ChatGPT [3][5][8] - The shift towards AI in advertising is expected to change how brands promote themselves and interact with consumers [4][11] Advertising Integration - Google is testing the integration of ads into AI Mode responses, building on previous AI-generated summaries known as "Overviews" [6][7] - Over 1.5 billion users view AI Overviews monthly, indicating significant engagement with this new format [7] AI Tools and Features - Google is introducing AI tools to enhance the creation of online ads, similar to initiatives by Meta [9] - These tools aim to improve targeting and conversion rates for merchants [10] Revenue Diversification - Monetizing AI tools and data could provide Google with new revenue streams, especially as its traditional ad business faces regulatory pressures [11] - The development of new business models around AI results is anticipated to be beneficial for Google in the long run [11]