Google set to bring ads in search AI Overviews

Google will start testing search and shopping ads in its AI-generated answers in the US, the Alphabet-owned (GOOGL.O) company said in an announcement, days after it rolled out the AI Overviews feature widely at its annual I/O conference.

Ads will appear in a ‘sponsored’ section within AI Overview based on the query’s relevance and information, the company said in a blog post.

Google has been looking to extend its dominance beyond traditional search advertising to emerging generative AI tech.

It aims to boost its ad sales, a major source of revenue for the tech giant, by integrating AI in its search engine.

Google reported a 13 per cent increase in advertising sales, reaching $61.7 billion in the first quarter ended March 31.

The company said it would continue to test and learn new ad formats, getting feedback from advertisers.

At its I/O conference, Alphabet showed how it is building on AI across its businesses, including a beefed-up Gemini chatbot and improvements to its prized search engine.