Google is taking ads into AI-powered conversations as growth in its traditional Search advertising business slows. For marketers, startups, and businesses, the way people discover products online could be changing fast.
Imagine asking an AI assistant to recommend the best running shoes, compare prices, and find the right store. Instead of scrolling through pages of search results, you receive a personalized answer, potentially alongside sponsored recommendations.
Google wants to make that experience its next big advertising opportunity.
On October 28, 2026, Google announced the international expansion of advertisements in AI Mode, its conversational AI-powered Search experience. The move comes as growth in its traditional Search advertising business slows, putting greater pressure on the company to turn its AI investments into new revenue streams.
According to TechCrunch, Google is also introducing ads in follow-up questions within AI Mode in the United States.
What Is Google Changing?
Traditional Google Search generally shows advertisements alongside a list of links. AI-powered Search changes that experience by allowing users to ask more detailed questions and receive conversational responses.
Google is now expanding advertising within this experience.
The company is rolling out AI Mode ads in 10 international markets: Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines, and Singapore. It also plans to expand into additional markets, including Brazil, Mexico, and the United Kingdom, in the fourth quarter of 2026.
In the United States, Google is introducing ads in follow-up queries, meaning advertisements can appear as users continue a conversation with AI Mode.
The idea is to connect businesses with consumers at moments when they are researching products, comparing options, or considering a purchase.
Google says early results are promising. According to its chief business officer, click-through rates for sponsored product listings in AI Mode are comparable to those of organic product listings.
However, these early results are based on Google’s own reporting, and broader adoption will determine how successful the format becomes.
Why Is Google Doing This Now?
The timing is important.
Alphabet reported $127.6 billion in revenue for the third quarter of 2026, up 25% year over year. Yet Google’s Search revenue growth slowed to 12%, compared with 17% in the previous quarter and 19% in the first quarter.
That slowdown does not mean Google’s advertising business is shrinking. Its Search revenue is still growing, but at a slower pace.
At the same time, people are increasingly using AI to search in different ways.
Google CEO Sundar Pichai said that queries in AI Mode are, on average, three times longer than traditional searches. One in five AI Mode searches globally involves voice, images, or documents.
These longer, more conversational searches create new opportunities for advertisers to reach consumers with specific needs.
Google’s challenge is to make money from these new experiences without making its AI-powered Search results feel overcrowded or less useful.
What Does This Mean for Startups and Marketers?
For businesses, the shift could change how customers discover products and services.
Consider a startup selling skincare products. A consumer might ask an AI-powered search engine which ingredients suit their skin, compare different brands, and request recommendations within the same conversation.
In this environment, appearing in relevant recommendations could become another important way for businesses to reach potential customers.
Three developments are worth watching:
1. Advertising could become more conversational. Businesses may need to connect their products with specific customer questions rather than relying entirely on traditional keyword-based search campaigns.
2. Product information could become more important. Clear descriptions, accurate pricing, useful product pages, and trustworthy information can help businesses serve customers who research products through AI-powered tools.
3. Competition for attention could change. As advertising moves into AI-generated experiences, startups will need to monitor how these formats affect customer acquisition costs, clicks, and conversions.
These are emerging possibilities, not guaranteed outcomes. Advertisers will need measurable results before deciding how much budget to shift toward AI Search.
The Bigger Picture: Google Is Reinventing Its Advertising Business
Google built one of the world’s largest advertising businesses around people searching for information and clicking on links.
AI introduces a different experience: users can ask complex questions, receive synthesized answers, and continue their research without repeatedly navigating traditional search results.
Google is now attempting to preserve its advertising model while adapting it to that new behavior.
The company has a significant advantage because it already has a global Search platform, established advertiser relationships, and a large ecosystem of commercial data.
But it must also navigate a delicate balance. Ads need to be relevant enough to generate business results without undermining users’ trust in the answers they receive.
The takeaway for founders: AI is changing more than how people create content or build products. It could also change how customers discover businesses, compare alternatives, and make purchasing decisions.
For startups, the opportunity is to understand these changes early and prepare their products, websites, and marketing strategies for an increasingly AI-driven search experience.
